Frequently Asked CMEA Questions
from the Legal Industry
The following are some questions commonly asked by those seeking asset appraisal for legal and litigation reasons.
Why do I need an Appraisals Communique certified appraisal? Can't I just look up the book value myself? click for Answer
It's your reputation and the success of your case that is at stake. Maybe you can safely risk cutting corners and foregoing this expense, but is it worth the chance?
Not all appraisal reports are created equal! Find out what you need to know before you make a costly mistake. 99.9% of appraisal reports fail to accurately value the tangible assets. Obviously, inaccurate appraisals are not uncommon. And, more disconcertingly, they can cause serious damage to your business.
Here are the three most common malpractices:
- guess;
- rely on book value; or
- rely on the word of a non-certified person who may have a "hidden" agenda.
All three methods are inaccurate and filled with liability. The report will not hold up to scrutiny because it lacks substantiation of the value.
Not only can values not be substantiated, but the Report itself is not written to reflect the approaches to value, market conditions, photographs and required substantiation that a USPAP Reports contain. USPAP (Uniform Standards of Professional Appraisal Practice) was promulgated by Congress and is accepted around the world as the authoritative source for machinery/equipment and business appraisals.
|
More Questions? Call Today! |
 |
Is there a problem with surface level information when it involves machinery and equipment? click for Answer
Yes! Many attempts have been made to educate the public on how to protect themselves when it comes to providing accurate machinery and equipment values. Oftentimes, people rely on surface-level information from an appraiser, which does not give an indication as to the level of accuracy or competency.
|
More Questions? Call Today! |
|
What types of reports do you deliver? click for Answer
Appraisals Communique delivers reports consistent with the scope of the engagement and your unique business needs.
Types of Appraisals
- Summary Certified Appraisals
- Desktop Summary Appraisals
Types of Analysis
- Fair Market Value
- Orderly Liquidation Value
- Forced Liquidation Value
|
Call Today! |
|
How do you know all about all the equipment you appraise? click for Answer
We don't know everything about everything; we don't need to. Our certified appraisers know a lot about a few industries and a little about a lot of industries. We know how to research and can apply our years of experience towards determining the proper values of what we appraise.
|
Call Today! |
|
How can one really know what machinery & equipment is worth? click for Answer
When it comes to business, you will at some point need to determine the true value of your machinery and equipment. As that value often impacts important business decisions, it is imperative to seek a professional appraiser. Business owners, attorneys, IRS, lenders and courts all ask the same question... "What's the machinery and equipment really worth?" Is there goodwill? Do only the tangible assets of the business have value? If so, how are those assets valued? The Certified professionals at Appraisals Communique travel coast-to-coast and worldwide establishing the fair market value of machinery and equipment. We are skilled in determining a substantiated, irrefutable, defensible estimate of value that our clients can rely upon. How is this possible?
Professional expertise and knowledge enable Appraisals Communique to deliver a comprehensive and detailed Certified Appraisal Reports consistent with the ethics and guidelines mandated by the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP, promulgated by Congress and the Appraisal Foundation, is the leading authoritative source for appraisals.
That is why you can expect to receive an accurate, irrefutable, defensible, and descriptive Report that includes photographs, model and serial numbers, and other descriptive information that will withstand scrutiny. Our assignment of value is based on extensive research, personal inspection, and contact with manufacturers and suppliers to determine what your items are really worth.
|
Call Today! |
|
Are there industries and equipment that you do not appraise? click for Answer
Yes. Gems and jewelry, antiques, art, real estate. We would be happy to refer you to appraisers in these fields.
|
Call Today! |
|
What type of equipment do you appraise? click for Answer
Although there are certain areas where we are more familiar with one type of equipment as opposed to another, we are familiar with most industries and can research and determine values on most machinery & equipment.
|
Call Today! |
|
What is the typical turnaround time for the preparation of a Certified Appraisal Report? click for Answer
It depends on the number of assets and where the assets are located. If a client's assets are in multiple states, then a desktop appraisal, in which the data is collected by the client, maybe used to save time.
Just what goes into a Certified Appraisal Report? click for Answer
A USPAP (Uniform Standards of Professional Appraisal Practice) compliant Report mandates specific information about the subject property to withstand scrutiny by the IRS, lenders, courts, attorneys and others.
Briefly, the Certified Machinery & Equipment Appraisal Report that Appraisals Communique delivers will contain substantiated, irrefutible, defensible information you can rely upon.
- Summary of Facts
- Scope of Work
- Degree to Which the Property is Inspected or Identified
- Extent of Research into the Physical or Economic Factors that Could Affect the Property
- Extent of Data Research
- Type and Extent of Analysis Applied in Arriving at Opinions or Conclusions
- Depth of Onsite Inspection
- Overall Condition of Equipment
- Intended Use
- Definitions of Conditions
- Methods of Evaluation
- Sources Contacted
- Final Value Summary and Reconciliation
- Appraiser's Certifications and Qualifications
- Photographs
|
Call Today! |
|
Will a CMEA prepared report stand up to IRS and Court scrutiny? click for Answer
Yes, a certified report prepared by a CMEA is irrefutable and substantiated because a CMEA prepared report is written in compliance with USPAP.
What are Appraisals Communique's qualifications? click for Answer
Kevin J. Scott, CPA, MBA, CVA, CM&A, CMEA has extensive experience in machinery and equipment appraisal, business valuation, litigation support, pre-audit planning, reconstructive accounting, turnarounds, management advisory services concerning acquisition and divesture options.
Affiliations
-
NEBB Institute (NEBB)
-
American Institute of Certified Public Accountants (AICPA)
-
Turnaround Management Association (TMA)
-
Colorado Society of Certified Public Accountants (CSCPA)
-
National Association of Certified Valuation Analysts (NACVA)
-
Alliance of Merger and Acquisition Advisors (AMAA)
-
Association of Insolvency and Restructuring Advisors (AIRA)
-
International Federation of Insolvency Professionals (INSOL)
Are your appraisals USPAP compliant? click for Answer
Yes. USPAP (Uniform Standards of Professional Appraisal Practice), promulgated by Congress, is the leading authoritative source for collection and reporting. A USPAP compliant Report is your only solution to protect yourself and your assets!
USPAP is a code of ethics and competancy mandated by law for Real Estate appraisals. It is not required for M&E appraisals. However, Appraisals Communique believes in the USPAP concept and our appraisals are USPAP compliant. For more information about USPAP, visit www.appraisalfoundation.org/s_appraisal/index.asp.
Do you follow any code of ethics? click for Answer
Yes. Read about the Code of Ethics and Competency Appraiser Awareness Program.
|
More Questions? Call Today! |
|
How much does an appraisal cost? click for Answer
It all depends on the situation. We need to know the scope of a particular operation. Contact us and let's discuss what type of operation your customer has. We can probably come up with a range of what a report will cost before engagement. If we get on-site and it is apparent that the report will cost much more than estimated, we will give you a call and explain. No charges will be due until you agree to them.
|
More Questions? Call Today! |
|
How far will you travel? click for Answer
We will go wherever you need us to go. Obviously travel expenses will apply.
For more information on destinations, click here.
|
More Questions? Call Today! |
|
Does Appraisals Communique provide other services? click for Answer
Yes, Appraisals Communique professionals are also certified through the National Association of Valuation Analysts to perform Business Valuations.
Appraisals Communique also provides equipment brokerage services. We can even help business owners liquidate their entire business, if necessary.
Will my information be kept confidential? click for Answer
Of course! Next to accuracy and ethics, your privacy is our highest concern.
Our Privacy Notice:
This privacy notice discloses the privacy practices for Appraisals Communique.
Information Collection, Use, Sharing
We are the sole owners of the information collected. We only have access to/collect information that you voluntarily give us via email or other direct contact from you. We will never, for any reason, sell or rent this information to anyone.
We will use your information to respond to you, regarding the reason you contacted us. We will not share your information with any third party outside of our organization, other than as necessary to fulfill your request.
Unless you ask us not to, we may contact you via email in the future to tell you about our products or services, or changes to this privacy policy.
Your Control Over Information
You may opt out of any future contacts from us at any time. You can do the following at any time by contacting us via the email address or phone number given on our website.
Security
We take precautions to protect your information. When you submit sensitive information via the website, your information is protected both online and offline. Only employees who need the information to perform a specific job (for example, billing or customer service) are granted access to personally identifiable information. The computers/servers in which we store personally identifiable information are kept in a secure environment.
