Business Owner FAQ
Here are some questions business owners typically ask when inquiring about our services:
Why do I need a Capital Machinery and Equipment Appraisals prepared report? Can’t I just look up the book value myself?
Book values are often outdated and unreliable, so the question is: why would you want to? False values may hurt your reputation or worse, cause you to undervalue your business. You owe it to yourself and your business to find out exactly how much your 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, who follows a code of ethics to ensure it will stand up to the highest scrutiny.
A CMEA prepared report explains the approaches to value, reflects the current market conditions and contains the substantiation that a USPAP report requires including photographs, when available.
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 appraisals.
Should a new partner who is purchasing an interest in a business obtain a certified machinery and equipment appraisal?
Yes. It would be in the best interest of all parties to obtain a certified machinery and equipment appraisal to ascertain the value of the tangible assets existing in the business before and after the partnership is established, in case that value changes as a result of the new partner bringing assets to the business. An appraisal will also be needed if a partner decides to sell a part of his ownership, or if the partnership is dissolved.
Can Capital Machinery and Equipment Appraisals help me sell my assets?
Capital Machinery and Equipment Appraisals provides equipment brokerage services. If necessary, we can assist in the liquidation of an entire business. Our experience and large network of buyers enable us to sell machinery and equipment quickly and easily for our clients. Our vast network of machinery and equipment brokers is both national and international allowing multiple offers on your tangible assets. Contact us today to learn more about how we can help your business.
Will a CMEA prepared report stand up to IRS and court scrutiny?
Yes. A certified report prepared by our professional CMEA team is substantiated and irrefutable. It is written in compliance with the Uniform Standards of Professional Appraisals Practice (USPAP) .
Can a CPA prepare a certified appraisal?
No. Only CMEAs can prepare a certified appraisal. A certified machinery and equipment appraisal requires the use of specific techniques, processes and procedures which typically CPAs have not obtained the training to perform. CPAs are trained to derive a “book value” while CMEAs are looking to obtain “fair market value” while adhering to the USPAP code of ethics.
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 specific requirements.
What information is included in a certified appraisal report?
In order to be USPAP compliant, a certified appraisal report includes specific information about the subject property. These facts will withstand scrutiny by any interested party, including the IRS, lenders, attorneys, and members of the judiciary system.
A certified report prepared by Capital Machinery and Equipment Appraisals will include the following defensible information regarding the subject of your appraisal:
- Summary of facts
- Scope of work
- Degree to which the property is inspected or identified
- Extent of research into the physical or economic factors that could affect the property
- Extent of data research
- Type and extent of analysis applied in arriving at opinions or conclusions
- Depth of on-site inspection
- Overall condition of equipment
- Intended use
- Definitions of conditions
- Methods of evaluation
- Sources contacted
- Final value summary and reconciliation
- Appraiser’s certifications and qualifications