There are at least 20 reasons why a Certified Machinery & Equipment Appraisal (CMEA) may be required by lenders, CPAs, attorneys, business owners, and others.
Lenders are required to substantiate equipment values to satisfy the U.S. Small Business Administration (SBA) and Bank Examiners. CPAs are required by the IRS to substantiate equipment values to satisfy the Pension Protection Act of 2006 and AICPA Standards of Valuation #1. Attorneys need to rely on a qualified and certified appraisal when representing clients in numerous situations. How do you know: “What’s the equipment is really worth?”
Do you guess?
Do you rely on the word of a non-certified person who may have a hidden agenda?
Do you rely on the depreciation schedule or book value?
Guessing, relying on the word of a non-certified person or relying on a depreciation schedule is inaccurate, unsubstantiated, filled with liability, risky, and will not hold up to scrutiny.
Here are at least 20 instances in which you might need a CMEA:
- Insurable Value
- Financing
- Tax Purposes
- Insurance
- Cost Segregation
- Property Taxes
- Gift Planning
- Retirement Planning
- Mergers and Acquisitions
- Divorce Settlements
- Estate Settlements
- SBA Loans
- Trust Agreements
- Partnerships
- 1031 Exchanges
- Litigation Support
- Sarbanes-Oxley
- FASB 141/142
- GASB 34
Estimating the true market value of your machinery and equipment at any given time requires the specialized skills of a professional who has the expertise and certification to determine its true fair market value. Whether you need to know the fair market value or other standards of value such as liquidation value, salvage value, or replacement cost, it makes sound financial sense to obtain a credible Certified Machinery & Equipment Appraisal Report that holds up under scrutiny with financial institutions, government agencies, buyers, sellers, shareholders, or partners.
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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