Developing a foundation to be an accredited M&E appraiser can come from many different career paths. Although some candidates start right out of college, having worked in another capacity in the machinery industry can have additional benefits.
Gaining experience as an asset manager in the equipment finance and leasing industry is a common profession that leads to independent valuation work. The credit risks associated with lending and investing need to be leveraged with the ability to better understand the value of the assets being collateralized. Properly estimating value throughout the deal term will lead to better upfront decision-making and future outcomes should the equipment be repossessed or returned in a default or end-of-lease scenario.
Later in their careers, asset managers may decide to work for independent valuation companies or accounting firms with appraisal divisions.
Another parallel career is used equipment sales and remarketing, either as an auctioneer or a machinery dealer specializing in certain industries such as heavy equipment, transportation, and manufacturing. Learning about the secondary market firsthand, where you see real-time used-equipment sales every day, is a great way to develop the skills necessary to become an independent M&E appraiser.
Equipment dealers sell in both retail and wholesale environments, which translates to fair market and orderly liquidation value comparisons. Auctioneers are typically buying and selling in a more distressed setting that lends itself to a forced liquidation value. Companies in these industries often develop databases of historical resale prices that can be used to accurately estimate the value of used equipment.
This is another area where certain individuals working for these companies might decide to focus on valuation more exclusively and strive to become an accredited ASA MTS appraiser.
Anyone working in businesses that have a heavy focus on machinery and equipment, either from a resale or operational perspective, will be able to use their skills to gain a leg up on becoming an independent appraiser. Professional appraisal work is a specialized skill that offers the opportunity to help clients in different scenarios that require an unbiased opinion of value, whether to close transactions or settle disputes.
Having the right background that establishes your credentials goes a long way to becoming a successful ASA MTS appraiser.