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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