We
work with Accountants, Attorneys, Bankers, and Financial Planners as well as Buyers
and Sellers of businesses who recognize that a business appraisal, at times, does
not represent the true value of the business. A business could have a small income
stream and have machinery and equipment worth millions of dollars.
There
are three methods used in appraising equipment:
Cost Approach
- Cost of new equipment less reasonable depreciation for age
Market
Data Approach - The exact equipment is no longer produced. What comparable
equipment is produced and how does it differ?
Income Approach -
This method is only used in special cases as it values machinery and equipment
based on the productivity value of the unit. In
addition the machinery and equipment can be valued on:
Fair
Market Value - Machinery and Equipment in place and running
Orderly
Liquidation - Machinery and Equipment, in most cases no longer needed by the
seller, in place but not running.
Forced Liquidation - Machinery
and Equipment offered at auction. |