Regardless of the state of the overall economy or particular industry, there is always a demand for machinery and equipment valuation work. It is essentially a recession-proof business. There are potential customers across various market sectors seeking experienced appraisers to assist with their transactional or dispute-resolution matters.
Here are a few examples of the more common client types:
Business Owners
Companies that use a lot of equipment in their day-to-day operations will look to buy used equipment to replace older assets that need to be sold in the secondary market. Appraisers can assist in both ends of these situations. Owners will also need valuation work when acquiring other businesses for tax and accounting purposes.
Financial Institutions (Collateral-Based Lending and Leasing)
Whether it’s a traditional bank looking to support a loan or a leasing company wanting to set realistic residual values and resell returned equipment, accredited machinery appraisers are involved in valuing on both the front and back ends of these deals.
Private Equity Groups
In the merger and acquisition (M&A) market, private equity will target investments in certain equipment-based companies. They make a long-term growth acquisition or a shorter-term buy-sell opportunity. Machinery appraisals are needed from a risk, accounting, and tax perspective.
Attorneys-Partner Dispute Work-Divorce-Insurance
For experienced appraisers with the right credentials, there are plenty of opportunities to team up with law firms on business disputes, divorce cases, insurance claims, or tax and accounting issues, and to get involved in litigation support work as an expert witness. This creates the ability to build up a resume of testimony experience as well.
Individual and Corporate Donors
Donation appraisals are quite common as businesses and individuals will give their used assets to technical schools, universities, museums, and other non-profits, requiring a qualified appraisal for items valued over $5,000.
In summary, this broad range of clientele affords machinery and equipment appraisers several avenues for effectively growing their businesses.