Appraisals

 

The experienced staff at Maier Asset Group have been valuing assets since 1993. Every month our staff assists with the appraisal and or sale of over 1,000 items of industrial type equipment. We’re in touch with the market because we’re right in the middle of it, day in and day out.

We offer Certified Appraisals of:

* Machine Shop Equipment * Mining Equipment
* Metal-Working Equipment * Rubber Equipment
* Foundry Machinery & Equipment * Telecommunication Equipment
* Fixtures Equipment * Office Equipment
* Industrial Equipment * Computer Equipment
* Medical Equipment * Printing Equipment
* Heavy Equipment * Marine
* Factory Equipment * Recreational
* Restaurant Equipment * Transportation
* Plastics Equipment * Fleets
* Chemical Equipment * Agricultural/Farm
* Woodworking Equipment * Collections
* Textile Equipment * Estates

Certified Appraisals for:

* Financing * Leasing
* Bankruptcies * Insurance
* Sales * IRS
* Mergers * Commercial Litigation
* Acquisitions * Estates
* Dissolutions * Donations
Types of Appraisal Reports

Maier Asset Group will work with you to determine the scope of work needed for your appraisal project. As our client, we will help you make critical decisions by providing you exactly the information you need. Here are examples of the different levels in scope for your appraisal projects.

Complete Appraisal – A detailed equipment listing with individual values, aggregate value totals, full narrative report including condition reports, disposal assumptions, and representative photographs.

Sometimes called an “Inventory Appraisal”, this type of assignment is used when an accurate asset listing does not exist. This approach requires a detailed inventory and inspection of all the assets.

This type of appraisal is most often used by financing institutions because it provides collateral verification. Attorneys and CPA’s also rely on the Complete Appraisal because it presents the highest level of appraiser inspection and verification.

Valuation – An appraisal of limited scope where the appraiser inspects the assets on a cursory basis, concentrating on those assets that collectively represent the majority of the aggregate value. The walk through appraisal involves a detail inspection of a representative portion of the assets and the inspection is used to determine the physical condition and to verify the existence of the major assets.

The client provides the appraiser a detailed list of the assets including description, age, and original cost. Often times this information is obtained from the company’s fixed asset ledger or depreciation schedule. Smaller assets are grouped together in “lots” and valued using standard industry depreciation rates. The appraiser focuses on the larger capital items and communicates his findings in a report that is fully compliant.

Desktop Appraisal – An appraisal of limited scope whereby the appraiser estimates the value of the equipment from his desk with only a listing supplied to him, and without benefit of a physical inspection of that equipment. Desktop appraisals are common due to time, travel, and cost considerations.

If a site visit is not required and timing is short, a desktop appraisal may be utilized. A detailed listing must be provided the appraiser and personnel familiar with the assets should be available to discuss their condition.

Collateral AuditThe Collateral Audit is a lower cost alternative to the appraisal reports listed above. A typical Collateral Audit is usually requested by a secured lender or law firm that needs to verify collateral counts, conditions, and marketability of the secured assets. Many lending contracts require collateral audits and frequently the audit precedes legal action – especially when a lender needs to decide if the collateral is worth attaching.

Types of Value Definitions

The purpose of the appraisal, along with the type of value definition, determines the criteria the appraiser considers in developing the valuation opinion. Since clients often have questions about the value of assets under various circumstances and conditions, we have compiled a list of the most common value definitions.

Fair Market Value in Continued Use

Fair market value in continued use is 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 all relevant facts, including installation, as of a specific date and assuming that the business 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 in continued use is the most encompassing value definition because assets are valued to include installation and assemblage costs and the costs to make the asset fully operational. The definition is similar to Fair Market Value Installed with and the exception of the assumption that the business earnings can support the equipment value. Fair market value in continued use is the most commonly used value definition where liquidation circumstances are not required or anticipated and is typically used in business valuation, divorce settlements, retirement planning, litigation support and income tax reporting.

Orderly Liquidation Value
Orderly liquidation value is the estimated gross amount, expressed in terms of money, that could be typically realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis, as of a specific date. The orderly liquidation value is the value received when the assets are sold piecemeal over a predetermined period of time (often three to six months). It is assumed the assets are properly advertised and that the buyer is responsible for all removal costs. The assets are sold without warranties or representation as to condition. If a buyer and seller cannot negotiate an acceptable price during the time period specified, the final option would be to offer the assets at a public auction.
Forced Liquidation Value
Forced liquidation value is the estimated gross amount, expressed in terms of money, that could typically be realized from a properly 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. Often times referred to as “Quick Sale”, forced liquidation value is the value received when assets are sold piecemeal at public auction. The buyer is responsible for the costs of removing the equipment and the seller makes no warranty or representation as to the condition of the assets. It is assumed the assets are properly advertised in a manner that is commercially practical and economically reasonable.

Real Property. Real Results. Professional Asset Marketing and Disposal.

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