There are numerous reasons why a Certified Machinery & Equipment Appraisal (CMEA) may be required by lenders, CPAs, attorneys, business owners, and others. And you may have needed one more than once, but didn’t know it. How do you know: “What’s the equipment is really worth?” Below are some of our best posts that explain who might need a CMEA and why.
Who Needs a CMEA?
As a CMEA, who will turn to you for your help and expertise? Below are four types of people who could potentially use your services this year.
20 Reasons You Might Need a Certified Machinery & Equipment Appraisal
There are at least 20 reasons why a Certified Machinery & Equipment Appraisal (CMEA) may be required by lenders, CPAs, attorneys, business owners, and others.
Why Attorneys Need a CMEA
Attorneys frequently work on cases that involve the value of a business’ physical assets, such as machinery and equipment, but oftentimes rely on the client’s estimates, follow a depreciation schedule, or guess at their value rather than rely on a certified machinery and equipment appraisal. Even value estimates put forth by an uncertified auctioneer or dealer will not hold up to scrutiny with the IRS, courts, or lenders.
Why Business Owners Need a CMEA
At some point in every business owner’s career, he or she needs to know how much his or her machinery and equipment are really worth.
Why Do Lenders Need a CMEA?
Over the past couple of years, bankers and lenders have been actively seeking new ways to reduce their liability when making loans. Often, lenders are asked to make a lending decision that involves knowing the value of a piece of machinery or equipment, and one of the best ways they can protect themselves is by hiring a certified machinery and equipment appraiser (CMEA) to do the job. It is a mistake to guess at the value of a piece of equipment, both because the guess could be incorrect and because a guess would make it difficult to support a loan decision.
Why Accountants Need a CMEA
Good accountants want to do what’s best for their clients, and the best thing they can do is to make sure that they are compliant with laws and best practices for dealing with the IRS. And if an accountant relies on something other than a certified appraisal to determine the value of a piece of equipment, his or her client is taking a significant risk.
The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.
By: NEBB Institute
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