Successful acquisitions include equipment appraisals. Sellers almost invariably overestimate the value of their equipment. The only way to get an accurate estimate is through a professional, industry-specific certified equipment appraisal, the results of which probably will be surprising to many. The surprise I’m referring to here is usually not a pleasant one.

I can’t tell you how often we’ve been hired in the aftermath of a non-appraised transaction and end up reporting “surprising” equipment values. It’s particularly common when the parties to the transaction are friends and or related; in these situations especially, both buyers and sellers may decide to minimize expenses associated with professional legal, accounting, and appraisal fees and carry out the transaction on a handshake or with a poorly written agreement. Litigation frequently follows. My advice to clients is not to wait for the surprise. Avoid costly and unnecessary litigation by getting the appraisal before completing a transaction rather than afterward.

Buy/sell situations are a common reason for equipment appraisals. I’ve often seen that situation, where the next generation, for whatever reason, is not in place to take over the family business. This happens not only in the printing industry but also in construction, farming, food processing, and industrial manufacturing.

Whether your client is a would-be seller or a would-be buyer, they may be well served by working with a competent certified professional in the Machinery & Equipment valuation industry to guide them through the transaction process. Your customer will certainly benefit from hiring an ASA appraiser who can provide a professional, industry-specific appraisal to help avoid any surprises.