A majority of businesses tap the services of heavy equipment and facilities for their day to day operations. The equipment plays a significant role in making production, transportation, logistics and other operational procedures fast and easy. At any given point, the enterprise may need to know the actual worth of equipment or machinery. This is where certified equipment appraisers come in to help.
Why do you need to Appraise Your Equipment?
There are several reasons why companies need to assess the current value of their machines through a certified machine appraiser. These reasons include:
- Business mergers and acquisitions
- Filing for bankruptcy
- Financial loans and lending
- Property taxes evaluation
- Buying/Selling Agreements
Appraising your facilities is the first step for a certified business evaluation that will determine the present worth of your equipment.
Types of Appraisal Reports
According to the Uniform Standards of Professional Appraisal Practice or USPAP (the only accredited agency that oversees appraisal processes), two kinds of written evaluations are currently accepted by the business sectors. These are:
1. Appraisal Reports - These are the most common types of assessments that contain all pertinent information about the equipment such as current market value, years of operation, salvage value, present condition and others.
2. Restricted Appraisal Reports - These are reports generated if the client and the user of the report are of the same party. If other third parties use the report for any reasons, restricted appraisal must not be used.
What Happens During the Appraisal Process?
For you to be prepared during the process of certified equipment appraisal, here are some insider tips on what to expect during the procedure:
1. Appraisers are supposed to view and gather as much information about the equipment or machinery. They will need the make, model, condition, serial and chassis number of the facility. Any records for repairs, overhauls, and upgrades will also be necessary.
2. Appraisers may come in surprise, or they may inform the client in advance. Advising the client in advance is the appraiser’s way of giving the customer time to prepare all the needed documents for the report.
3. The appraiser may conduct a type of evaluation called as a desktop appraisal. It means that they do not necessarily need to see the actual equipment. They will be relying solely during their assessment on the documentations presented by the client.
4. Once information is gathered, the appraiser will start making his assessment, writing and certifying the result. It is important to note that clients and appraisers must have no conflicting interest with each other for a fair and transparent assessment of the equipment.
When looking for qualified appraisers, choose someone with unparalleled experience and excellent track record in the field of machinery appraisal. Always ensure that your assets are priced fairly.
The author is a renowned certified machinery appraiser for over a decade now. Being involved in the appraisal of equipment and machinery of multinational companies from various fields, he is a genius in assessing the fairest worth of your asset.