ASA Accredited Machinery & Equipment Appraisal Services machinery, equipment, personal pro Our certified and accedited appraisers are capable of undertaking assignments including machinery and equipment, business assets and personal property throughout the United States. The principal of RPM Asset Valuation Services carries the Accredited Senior Appraiser, ASA designation in the Machinery & Technical Specialties Discipline through the American Society of Appraisers. In addition, he is a member of the Certified Appraisers Guild of America and holds the CAGA designation in the valuation of personal property matters.
We offer our certified appraisal services to financial institutions, insurance companies, attorneys, accountants and private individuals. Our appraisal staff is USPAP certified and our reports are in full compliance of their outlined standards, rules and guidelines.
Why Is It Important To Hire an Accredited Senior Appraiser (ASA) with the American Society of Appraisers?
The American Society of Appraisers is a professional accrediting organization providing appraisal designations in various property classifications such as personal property, real property, machinery & equipment, business valuation as well as other specialized appraisal disciplines.
Appraisal professionals join the American Society of Appraisers (ASA) as applicants. Upon approval of admission, the applicant has ten (10) months two fulfill two (2) important requirements; 1) Pass the ASA ethics exam and 2) take and pass a 15 hour USPAP course and exam provided by a Appraisal Qualification Board(AQB) approved course instructor. Once these requirements are met, the applicant becomes a candidate.
In order to obtain a designation, a candidate must pass their disciplines Principals of Valuation (POV) courses (usually a series of four (4) courses building upon appraisal practice and theory), and a specialty or comprehensive exam (if applicable to their discipline). Candidates may apply for a designation with ASA provided that they have the appropriate number of years of appraisal experience and have met all other discipline requirements. Those applying for the Accredited Member (AM) designation must have two (2) years of full time appraisal experience and those individuals applying for the Accredited Senior Appraiser (ASA) designation must have at least five (5) years of full time appraisal experience.
Our appraisal staff has a wide range of appraisal experience with emphasis in providing valuations for Internal Revenue Service (IRS) appraisal requirements, Financial Accounting Standards Board (FASB) requirements, estate and gifting appraisals, charitable donation appraisals, bankruptcy appraisals, insurance appraisals, appraisals for divorce, and casualty loss appraisals.
Valuations can be performed on machinery and equipment for a variety of purposes including:
Ad Valorem Tax
Allocation Of Purchase Price
Transfer of Property
Depending upon the clients needs an appraisal report can be performed for the above scenarios. Whether the client is buying/selling, insuring, liquidating, replacing, planning or gifting an asset, a supportable and dependable value conclusion will be prepared by our knowledgeable staff.
Typical machinery, equipment and business assets that require a value estimate are:
Restaurant/ Retail Equipment
Material Handling Equipment
There aretwo (2) basic types of appraisals that can be performed; Restricted Appraisal Report, or an Appraisal Report.
ARestricted Appraisal Report is typically requested by individuals that are somewhat familiar with the asset or group of assets. The Restricted Appraisal Report is a limited report that typically only states the appraisers value conclusion with very limited explanation. Many clients request a Restricted Appraisal Report when time is of the essence. This particular type of report can usually be conducted from the appraisers desk, if necessary.
A common name associated with the Restricted Appraisal Report is known as a “desk top appraisal”. This type of appraisal can be performed from the appraisers desk relying upon no physical inspection of the assets. The appraiser relies on data furnished by the client including; an itemized list of the subject assets being valued, pictures of the assets, maintenance records, manufacturer, model & serial numbers, original costs, date of acquisition, and any relevant material on the assets. The appraiser must disclose in the report the actions taken or not taken in deriving the data used to support the value conclusion of the asset.
An Appraisal Report typically includes the appraiser performing a full physical inspection of the asset and developing all applicable approaches to value if deemed applicable to the asset and appraisal problem. The appraiser can physically see the asset to appreciate the quality, condition and productiveness of the asset.
This particular appraisal will include all market research, assemblage of pertinent data (listing and classifying), listing of appropriate analytical techniques and reporting of knowledge, experience and judgment. The Appraisal Report is the most frequently requested.
There are three (3) typical approaches to value that should be considered and they are as followed; 1) Sales Comparison Approach, 2) Cost Approach, and 3) Income Approach.
The most recognized approach in valuing machinery and equipment is the Sales Comparison Approach. This approach can be described as prices paid for alternate assets similar in nature to the subject property. Adjustments would then be implemented to the comparable assets to compensate for differences in conditions of sale, marketing time, physical and economic differences and financing arrangements.
The second most common recognized approach to value is the Cost Approach. This approach starts off with the current replacement cost new of the property then deducting for loss in value caused by physical deterioration, functional obsolescence and economic obsolescence. The logic behind this approach is principle of substitution; a prudent buyer will not pay more for a property than the cost of acquiring a substitute property of equivalent utility.
The least utilized approach to value is the Income Approach. The Income Approach considers value to be presented by the present worth of future benefits derived from ownership, typically measured by the capitalization of a specific level of income. This approach to value may be utilized for machinery and equipment. However, it is seldom used by machinery and equipment appraiser since it is often difficult to determine precisely what portion of the income stream is specifically attributable to the subject.
Depending upon the needs of the client and scope of the appraisal assignment there are multiple terms of reference that should be considered when valuing business assets.
Listed below are the most recognized and accepted appraisal concepts and definitions. Call and speak to an appraisal specialist today to discuss your valuation needs.
Fair Market Value The estimated amount, expressed in terms of money, which may be reasonably expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, as of a specific date.
Fair Market Value in Continued Use The estimated amount, expressed in terms of money, that may reasonably be expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of relevant facts, including, installation, as of a specific date, and assuming that the earnings support the value reported. This amount includes all normal direct and indirect costs, such as installation, and other assemblage costs, to make the property fully operational. Fair Market Value Installed Is the estimated amount, expressed in terms of money, that may reasonably be expected for an installed property in an exchange between a willing buyer and willing seller, with equity to both, neither under any compulsion to buy or sell and both fully aware of all relevant facts, including installation, as of a specific date. This amount includes all normal direct and indirect costs, such as installation, and other assemblage costs, to make normal direct and indirect costs, such as installation, and other assemblage costs, to make the property fully operational.
Fair Market Value Removal Is the estimated amount, expressed in terms of money, which may reasonably be expected for a property between a willing buyer and seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of relevant facts, as of a specific date, considering that the property will be moved to another location.
Orderly Liquidation Value Is the estimated gross amount, expressed in terms of money, that could typically be realized from a liquidation sale, given a reasonable period of time to find a purchaser(s), with the seller being compelled to sell on an “as-is, where-is” basis, as of a specific date.
Forced Liquidation Value Is the estimated gross amount, expressed in terms of money, that could be typically realized from a property 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.
Liquidation Value in Place
Is the estimated gross amount, expressed in terms of money, that could typically be realized from a failed facility, assuming that the entire facilitywould be sold intact with a limited time to complete the sale, as of a specific date.
Replacement Cost New Is the current cost new of a similar new property having the nearest equivalent utility as the property being appraised. Is the estimated amount, expressed in terms of money, which may be expected for the whole property or a component of the whole property that is retired from service for use elsewhere, as of a specific date.
Scrap Value Is the estimated amount, expressed in terms of money, which could be realized for a property if it were sold for its material content, not for a productive use, as of a specific date.
The expected residual value of an asset at the end of its economic life span.
Insurance Cost New
Is the replacement or reproduction cost new as defined in the insurance policy less the cost new of the items specifically excluded in the policy, as a specific date.
Insurable Value Depreciated
Is the insurance replacement or reproduction cost new less accrued depreciation considered for insurance purposes, as defined in the insurance policy or other agreements, as of a specific date.
The above definitions were derived from ASA’s Valuing Machinery and Equipment
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