Equipment Appraisal Services is committing to help educate business owners, lenders, accountants, and attorneys in regards to the specifics and process of a machinery and equipment appraisal. Historically, many professionals and business owners relied on guessing, unqualified individuals, or book values to determine asset values. Unfortunately, these methods result in inaccurate and potentially risky results that could be scrutinized by the IRS, the courts, or opposing attorneys. A certified machinery and equipment appraiser has the credentials and expertise to produce a third-party machine appraisal. There are many reasons that a USPAP (Uniform Standards of Professional Appraisal Practice) compliant machinery and equipment appraisal may be required. These include appraisals on machinery for situations related to divorce, partnership issues, buy/sell agreements, estate planning, 1031 exchanges, litigation, tax purposes, business valuations, and business purchase price allocations, to name a few. A certified machinery and equipment appraiser will ask the right questions, research the items to find comparables, and put together a professional USPAP compliant report. They have the ability to find fair market value, orderly liquidation value, and forced liquidation value for machines. An appraiser should also have the best tools for developing values. For example, our company has access to a database of over 4 million items for use in generating comparable transactions. We look forward to continuing our dialogue with you in future posts on our Machinery and Equipment Appraisal Blog.