Business owners often forget that they have valuable tangible assets to which they may obtain additional financing for their operations. With the use of a certified valuation report, there is a excellent chance to obtain the maximum value for a loan.
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.
click to close
Should a new partner who is purchasing an interest in a business obtain a Certified Machinery and Equipment Appraisal? click for Answer
It would be in the best of interest of all parties to obtain a Certified Machinery and Equipment Appraisal to ascertain the value of the tangible assets, if any, that a new partner is bringing to the business, as well as to ascertain the true value of the tangible assets before the capital of the business is distributed among all the partners.
There would also be a similar need if a partner decides to sell a part of his ownership or to dissolve the partnership.
click to close
Why is Fair Market Value used instead of Book Value? click for Answer
Book value is the difference between the acquisition cost and depreciation, which does not reflect the true value that would be obtained on the open market. However, Fair Market Value is the current value for which an asset may be obtained on the open market.
click to close
Can Appraisal Communique help me sell my assets? click for Answer
Appraisal Communique also provides equipment brokerage services. We can also help business owners liquidate their entire business if necessary.
Competition today requires that businesses get a high return on tangible assets. Idle equipment provides no return. It drains cash, tying up critical working and growth capital. 
What are you to do? Rely on an auctioneer? Place ads in your local paper? Let's be honest... an auctioneer will essentially bring the lowest possible price. Ads cost money and take up your valuable time. Not to mention there is only a 50/50 chance you'll place the ad the day a potential buyer just happens to read your advertisement. You'll be wasting time and money!
Your solution is to rely on the expertise of Appraisals Communique. We sell equipment fast and for top dollar. That's because we are connected to a vast network of machinery and equipment brokers spanning national and international markets where the demand for machinery and equipment of all types is growing.
click to close
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.
click to close
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
click to close
Can Appraisals Communique appraise my entire business? click for Answer
Yes. The professionals at Appraisals Communique are certified to perform full business valuations.
click to close
Can a CPA prepare a Certified Appraisals? click for Answer
No. A CPA can perform an appraisal, but the report will more than likely not be in accordance with USPAP. CPAs are trained to derive "Book Value", however, Machinery and Equipment Appraisals are most often developed to derive "Fair Market Value", which require the use of specific techniques, processes and procedures to which CPA, typically, have not obtained the training to perform.
click to close
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.
click to close
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.
click to close
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.
click to close
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
click to close
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)
click to close
Do you follow any code of ethics? click for Answer
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.
click to close
How far will you travel? click for Answer
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, substantiated and defensible because a CMEA prepared report is written in compliance with USPAP.
click to close
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.
click to close
