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April 1, 2012
by EquipNet News
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Certified Machinery and Equipment Appraisals and Auctioneers

We continue our series of posts discussing the situations in which a certified machinery or equipment appraisal can protect different types of parties from liability. In this post, we’ll discuss auctioneers.

In a challenging economy like the one we’re in now, some businesses are forced to close; others auction off items to free up cash. Auctions are a quickly growing business, and it’s therefore vital to ensure that auctioneers are USPAP compliant. EquipNet auctioneers are USPAP compliant and offer a wide array of auction solutions.

Often, auctioneers will use their prior experience to estimate of the value of a piece of machinery or equipment up for auction, but these estimates aren’t USPAP compliant. Lenders and courts require USPAP-compliant appraisals from auctioneers, and if auctioneers are simply making estimates, their liability increases. As a result of the requirement for USPAP compliancy, many auctioneers are losing business because they aren’t securing certified appraisals.

An auctioneer can limit liability and increase profits by obtaining a certified machinery and equipment appraisal. With a certified appraisal in hand, an auctioneer’s estimate becomes defensible, irrefutable, and substantiated.

If you are already sold on the importance of obtaining certified appraisals, and would like to know how EquipNet can help, take a look at The Asset Accuracy Resource Center to learn more about our appraisal and valuation services.


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March 28, 2012
by EquipNet News
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Business Owners Can Reduce Their Risk of Liability by Working with a Certified Machinery and Equipment Appraiser

In one of our last blog posts, “Protect Your Company from Liability with a Machinery or Equipment Appraisal,” we discussed the variety of professionals who will likely need a certified machinery and equipment appraisal (CMEA) at some point in their career in order to protect themselves from liability. In this post we’ll discuss why a business owner might need a CMEA. 

 

There are a variety of instances when business owners should work with a professional appraiser, including if they are buying or selling machinery and equipment, if they are in the process of getting a business valuation, or if they’re looking to obtain funding.

 

When selling equipment, business owners need to be certain they’re not selling too low or pricing their machinery and equipment above the fair market value. Buyers need to know that they’re not paying too much to purchase the machinery and equipment, and a CMEA can help ensure that you know what your equipment is worth. In addition, the IRS requires buyers and sellers to agree on the value of tangible assets involved with a business transfer. They must allocate a particular value for tangible assets, as well as goodwill.

A Certified Machinery and Equipment Appraiser has the expertise, certification, and knowledge to conduct an independent, unbiased machinery and equipment appraisal. CMEAs abide by the regulations and ethics of the Uniform Standards of Professional Appraisal Practice.

If an appraisal is prepared by anyone other than a qualified appraiser, it won’t hold up to scrutiny from third parties, such as lenders, the IRS, attorneys, or a court of law, to name a few. They all require a USPAP-compliant, substantiated certified equipment appraisal. Check out The Asset Accuracy Resource Center for more information about appraisal and valuation services provided by EquipNet.


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March 27, 2012
by Julie Baker
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Protect Your Company from Liability with a Machinery or Equipment Appraisal

No company wants to be responsible for the repercussions of a deal gone wrong, and smart companies do everything they can to reduce their risk of liability. In any type of deal that involves machinery or equipment, a certified machinery or equipment appraisal can protect the companies involved from liability by providing everyone involved with a substantiated value of the equipment.

In an upcoming series of posts, we will discuss the situations in which a certified machinery or equipment appraisal can protect different types of parties from liability. We will discuss auctioneers, lenders, accountants, and business owners and how certified appraisals can help each one. Whether you provide services or benefit from them, our series will help you understand just how crucial a certified appraisal is.

If you are already sold on the importance of obtaining certified appraisals, and would like to know how EquipNet can help, take a look at The Asset Accuracy Resource Center to learn more about our appraisal and valuation services.


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March 15, 2012
by EquipNet News
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Deciding Whether or Not to Sell Equipment

If a business owner is looking to sell manufacturing equipment or machinery, he/she needs to know three separate types of value that their assets could bring in the market – orderly liquidation value, forced liquidation value, and fair market value. The differences among these types of machinery and equipment asset valuations are dependent upon the situation of the business and the time frame in which the assets need to be liquidated. Recently, however, in certain markets there has been almost no difference between orderly liquidation value and fair market value due to sluggish market conditions.

Because there is such a large amount of equipment and machinery available in the market, buyers have more options than they normally would. Of course, there are other circumstances that determine the current value of equipment, such as in the case of custom machinery. And for that reason, potential sellers need to know what it’s all worth.

Some sellers, like those whose businesses are in dire circumstances, may be forced to sell and get the best price for the equipment as quickly as possible. However, for others who may not be in such a rush to sell, understanding the current types of equipment value can help them make better informed decisions about whether to sell now or not.

It is essential for business owners to know the value of their equipment, especially if they are looking to sell, so that they can receive the best possible price in the current market. Visit EquipNet’s Facility Closure Resource Center for more information.

 

 

 


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