Equipment and Business Valuation
Defensible values for machinery, equipment and operating businesses. Written for lenders, owners and their advisors. Prepared in conformity with USPAP.
Services
Machinery and equipment (M&E) and furniture, fixtures and equipment (FF&E) for collateral lending, acquisitions, insurance and asset planning.
Operating companies valued as going concerns, including goodwill and other intangibles, for lending, transactions and ownership changes.
For Lenders
Reports are written to be reviewed. Every conclusion traces to its data. Every premise of value is defined up front.
Intended use, user, premise and effective date stated on page one.
Sales and listings cited by source, date and condition.
Industry and economic conditions that move the value, in plain language.
No brokerage or financial interest in what we value.
Process
Scope, intended use, premise of value, fee and delivery date agreed in writing.
Asset lists, photographs, financial statements and tax returns, as the assignment requires.
Market research, comparable data and the applicable approaches to value.
A signed report delivered as PDF, ready for underwriting and file review.
Questions
Fair market value in continued use assumes the equipment stays installed and working as part of an operating business. Orderly liquidation value assumes the equipment is sold off as-is, where-is, with a reasonable amount of time to find buyers. Forced liquidation value assumes a quick sale, such as an auction. Lenders often ask for more than one premise so they can see the range.
Not always. Many assignments are desktop appraisals based on the owner's asset list, photographs and serial-plate data. When the intended use or the lender calls for it, the equipment is viewed on site.
An asset list with make, model, year and serial number for each item, current photographs, and notes on condition, hours or mileage, and any recent repairs or upgrades.
Typically three to five years of financial statements and tax returns, a current interim statement, a list of owners and their compensation, and a description of the business and the transaction.
Yes. Business valuations for SBA and conventional acquisition loans are a core service, often paired with an equipment appraisal on the same deal.
Yes. Reports are prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) and are delivered as signed PDFs.
About
MAI, AI-GRS, FRICS, CCIM, ASA, CMEA, SBA
About 30 years in commercial valuation, appraisal management, brokerage and lending. Former chairman of the Alabama Real Estate Appraisers Board, where he also led investigations and complaints.
He has placed commercial mortgage debt as a lender and reviews appraisals for banks today. He knows what an underwriter needs from a report because he has sat on both sides of the file.
State certifications are listed on the ASC National Registry.
Send the asset list or company name and the intended use. You will get scope, fee and timing back by email.