Business Brokers FAQ
Here are some questions business brokers typically ask when inquiring about our services:
Why would my client need a Capital Machinery and Equipment Appraisals prepared report? Can’t they just look up the book values themselves?
Book values are often outdated and unreliable, so the question is: why would you want them to? False values may hurt your reputation as a broker or worse, cause the client to undervalue the business. You owe it to yourself and your client to find out exactly how much the machinery and equipment is worth.
At Capital Machinery and Equipment Appraisals, we understand how important a substantiated certified appraisal is to our clients. Our certified reports are prepared by someone who knows how to do it, a CMEA, and who follows a code of ethics to ensure it will stand up to the highest scrutiny.
A CMEA prepared report reflects the approaches to value, market conditions and contains the substantiation that a USPAP report requires. The USPAP (Uniform Standards of Professional Appraisal Practice) was promulgated by the U. S. Congress and is accepted around the world as the authoritative source for machinery and equipment values.
Is there a problem with surface level information when it involves machinery and equipment?
Yes! If your client’s machinery and equipment appraisal relies on surface level information, they will not obtain a true value. The team at CMEA specializes in substantiating facts of each asset in order to provide real, current values they can trust.
How do you know about the machinery and equipment that you appraise?
The team at Capital Machinery and Equipment Appraisals has years of experience appraising machinery and equipment and is well connected in the industry. Our experience and network of professionals will ensure your client’s assets are appraised accurately.
Why is it important to obtain a professional appraisal?
As a business broker, your client needs to know how much their machinery and equipment is worth. This information is critical for accurate financial reporting and will be scrutinized by all who review it. Don’t you think it should be dependable and substantiated?
A certified appraisal conducted by Capital Machinery and Equipment Appraisals will hold up to the highest scrutiny by any interested party such as attorneys, the IRS, lenders, and members of the judiciary system. Our CMEA professionals travel worldwide to establish fair market value of machinery and equipment for our clients. We inspect the assets and conduct extensive research to gather as much information as possible to substantiate your client’s value conclusion. We have relationships with suppliers and manufacturers to help us seek out the answers to support your client’s claim. A certified report prepared by CMEA will include photographs, model and serial numbers, detailed descriptive information, and the research we have gathered regarding your client’s assets.
How can you place a value on items you have not seen?
The practice of appraising items not seen is called a desktop appraisal. A desktop appraisal is required in situations where the collateral is scattered over a large geographic area, or the business broker’s client wants to keep the cost of the appraisal down. Desktop appraisals are based solely on the information provided by the business broker’s client.
Is a machinery and equipment appraisal needed when a business valuation is prepared?
A professional appraisal of your client’s machinery and equipment is necessary to ensure your client’s business is not undervalued. Tangible assets can be a vital part of the operations and thus are considered to hold significant value. If so, physical assets may have to be segregated to ensure that the value of the business is properly valued.
What type of equipment do you appraise?
We serve a variety of industries and can accommodate most requests. Please contact us directly for further information regarding your client’s needs.