SFL Valuation  Services, Inc.

17 Reasons Why You & Your Clients NEED A Certified Machinery & Equipment Appraisal To Eliminate the Risk of Liability

• Financing/SBA Loans—Establishes collateral value.  The lender will need to have a Certified Machinery and Equipment Appraisal.
• 1031 Exchanges—One of the best kept secrets of the IRS.  Assets require a valuation for a like-kind exchange.
• ESOPS—Initial appraisals must start out with accurate values of tangible assets such as machinery/equipment.  Book value is usually not accurate.
• Valuations—Book value is probably not accurate and usually different from Fair Market Value.  If the machinery/equipment is not valued properly, the entire business valuation is skewed.  Lots of risk and liability!
• Gifting—Requires an appraisal of the items becoming a gift.
• Estate Planning—Trusts and Wills require a value of the items.
• Liquidations—How do you effectively and profitably liquidate the assets?
• Sarbanes-Oxley—Tangible assets must be valued and substantiated.
• Buy/Sell Agreements—Partners need to know at the outset how machinery and equipment values will be determined.
• Converting From C to S Corp—A CPA typically requires an appraisal of the assets.
• Cost Segregation—Equipment values need to be substantiated.
• Divorces—The division of property will require an accurate, substantiated value by the court.
• Property Taxes—An excellent tool to prepare for a governmental authority to reduce and substantiate equipment values or substantiate the equipment is no longer owned by your client.
• Partnership Dissolution—The partners are splitting the sheets and a total equipment value will be required.
• IRS—The Pension Protection Act of 2006 requires a substantiated and certified equipment appraisal of the equipment.
• Merger & Acquisitions—Buyers and sellers will need an accurate value of the machinery and equipment being purchased or sold.
• Insurable Value—Insurance agencies and business owners need an accurate value of the machinery and equipment being insured.

Appraisal Fees

The cost of our machinery & equipment appraisals can vary considerably with different purposes or conditions and the type of report needed.  Contact SFL Valuation Services, Inc. for a free consultation.  Prices will be quoted after your free consultation and the scope of your needs is determined.  Fees will be quoted once an equipment list and depreciation schedule have been received.

Machinery & Equipment Appraisal Report Types

SUMMARY APPRAISAL REPORT A summary appraisal report is typically utilized for estimating the value of machinery and equipment.  On-site inspection details are included in the appraisal report.  This USPAP compliant report expresses value as a single figure for each tangible asset valued and the aggregate is reported as a single number.

DESKTOP APPRAISAL REPORT A desktop appraisal report is typically used to determine value without the expense of an on-site inspection and detailed analysis of the condition of the machinery or equipment.  You send us pictures and a brief description of the machinery or equipment and we provide a value based on this information.

CERTIFIED MACHINERY/EQUIPMENT APPRAISAL A Certified Machinery/Equipment appraisal is an appraisal that is compliant with USPAP and the standards of the National Equipment and Business Builders Institute.  SFL Valuation Services is a certified member of the NEBB Institute.  Whether you need to know the fair market value or other standards of value such as liquidation value, salvage value or replacement cost, the professionals at SFL Valuation Services can provide you with a certified appraisal report in a timely manner at a competitive cost that will meet the requirements of financial institutions, government agencies, buyers & sellers, shareholders, or partners.

Certified Appraiser vs. Non-Certified Appraiser

Auctioneers and machinery and equipment dealers may have a hidden agenda.  99.9% of these individuals are not Certified or trained in providing USPAP compliant appraisal reports.  If the appraisal report you obtain is not USPAP compliant it is not a “qualified” appraisal prepared by a “qualified” appraiser pursuant to the Council of Foundations, IRS, or others.  A Certified Machinery and Equipment Appraiser (CMEA) who is a member of NEBB Institute, meets and exceeds the experience and training requirements of many governing authorities.  Beware if the individual does not have a certification.  You will only be opening yourself up to increased costs, liability, risk, and an unsubstantiated equipment appraisal.

What is USPAP?

The Uniform Standards of Professional Appraisal Practice (USPAP) are the generally accepted standards for professional appraisal practices in North America.  USPAP contains standards for all types of appraisal services.  Standards are included for real estate, personal property, business and mass appraisal.