Don’t be fooled into thinking that an appraisal done by just anyone is a “CERTIFIED” appraisal. Be SURE you know the difference
Do your appraisal sources really understand why the equipment values are important to you, and how you are going to use them? Can you count on appraisals being USPAP (Uniform Standards of Professional Appraisal Practice) compliant, so the values to stand up in court, or under scrutiny of lender credit committees, or state and federal banking regulators? And when you look at an equipment appraisal is the information presented in a concise, easily readable, complete presentation? Our appraisals and reports aren’t like any you’ve seen from our competitors. We make them complete, compliant and irrefutable, and then present the information in what our clients tell us, is the most easily readable, understandable, and useful product in the appraisal industry.
Our staff is made up of professionals with years of experience not only in appraisals, but as lenders, equipment brokers, truckers, mortgage underwriters, maintenance managers and legal project managers. That means we know what’s important and we have designed our appraisal processes and reports with the professional and practical needs of our customers in mind.
Major decisions about business finance depend first and foremost on an accurate assessment of the company’s monetary value. For buyers, sellers, potential partners, regulators, investors, and many other parties, the ability to develop an informed measurement of a business’ worth translates directly to smarter moves, stronger negotiating leverage, and more predictable outcomes. To obtain these measurements, businesses across a wide spectrum have long been faced with a classic dilemma: whether to rely on fickle, one-size-fits-all rules of thumb, or engage the services of qualified valuation professional and certified appraisers. Equify Asset Services provides the unbiased, impartial business appraisals more and more companies and professions rely on to make informed decisions.
Equify Asset Services does it right. A machinery and equipment appraisal is a type of investigation into the law of probabilities with respect to valuation. Through the appraiser’s experience, training, and integrity, we are able to project the activities of buyers and sellers in the marketplace into an estimation of value. In reaching a conclusion, comparison of assets usually involves adjustments due to the individuality and uniqueness of each asset. It’s a combination of consciously applied professional valuation techniques to give you an impartial final appraisal report you can trust.
There are variations to various values based on specific circumstances and equipment, however the three primary values most often requested are as follows:
FAIR MARKET VALUE (FMV) is an opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts, as of a specific date.
ORDERLY LIQUIDATION VALUE (OLV) is an opinion of the gross amount, expressed in terms of money, that typically could be realized from a liquidation sale, given a reasonable amount of time to find a purchaser or purchasers, with the seller being compelled to sell on an as-is, where-is basis, as of a specific date.
FORCED LIQUIDATION VALUE (FLV) is an opinion of the gross amount, expressed in terms of money, that typically could be realized from a properly advertised and conducted public auction, with the seller being compelled to sell, with a sense of immediacy, on an as-is, where-is basis, as of a specific date.
Once we have agreed to the type of appraisal to be performed and an engagement agreement is signed, we begin inspecting the equipment. Inspection includes verifying and recording the general condition, make, model, age and hours when possible, and taking photographs from various angles to refer to later and include in the report. We then research recent sales of like or similar machines. Depending on availability we investigate recent prices from auctions, sources on the internet, and in some cases, direct calls to dealers and others with knowledge of the specific equipment. We also consider the economy in the area and in general, as well as industry forecasts. Inspection and research information is then reviewed, analyzed, and values (FMV, OLV, and/or FLV) established. Finally, the Certified Machinery and Equipment Appraisal is assembled and reviewed, along with supporting information, professionally bound, and presented to you, the client, in Equify Asset Services thorough and easy to follow Certified Appraisal presentations.
FULL APPRAISAL: An onsite visit is made to the equipment location(s). A visual inspection is performed to make sure the equipment exists and is working. Equipment is observed, photographed, and condition reported. A detailed mechanical inspection is not made. Values are determined based on the specific equipment observed in comparison with the market. This is the most accurate type of Machinery & Equipment appraisal.
DESKTOP APPRAISAL: In a desktop appraisal an estimation of value is made based on information provided to the appraiser by the client. Onsite visits are not made and equipment is not physically inspected or verified in this case. Values are derived based strictly on the information provided.
RESIDUAL VALUE PROJECTION: This valuation is an estimate of the future value of equipment at a specific point or points in time. Residual Value is based on the predicted utilization, maintenance, depreciation in value based on age, and expected future market conditions. Residual Value Projections are often used by equipment leasing companies.
THE QUESTIONNAIRE: a document we use, that is completed by the client, to help ensure the proper framework and a credible valuation outcome. It is comprehensive and very important.
Here is some of the information to be determined: