Equipment & Machinery Appraisals
There are many reasons a business owner or representative may find themselves in need of an Equipment or Machinery Appraisal. Whether trying to obtain a loan, sell, buy or properly evaluate the financial worth of a business, and accurate appraisal can prove very helpful.
The team at Brumabugh Appraisals has issued more than 1,100 appraisal reports for clients in more than 80 industries throughout the United States. Some of the industries we commonly perform machinery and equipment appraisals for include:
- Construction & Heavy Machinery
- Farms & Ranches
- Medical Practices
- Offices & Office Buildings
- Plants & Factories
We also frequently conduct appraisals for the following circumstances:
If you would like to learn more about how we conduct our appraisals, please see our Appraisal Process page. You can also learn more about the reports we generate on our Certified Appraisal Reports page.
Types of Appraisals
Desktop appraisals are the most cost effective type of appraisal. These appraisals meet the detail requirements for most restaurant equipment related purposes except for banking considerations, litigation, and tax purposes. Desktop appraisals utilize client provided information such as manufactures name, model number, and other pertinent details along with photographs. The entire process is literally done from our desk using client provided information. The reporting for a Desktop Appraisal is virtually the same as a full Appraisal Report with the exception that we state the equipment has not been personally viewed or inspected.
An appraisal report is the highest level of certified appraisal and is completed using appraiser gathered data and photographs. This level of office equipment appraisal can withstand the scrutiny of litigation, banking / SBA loan requirements, and tax challenges.
Approaches to Value
While going through the appraisal process, we consider three approaches to value. The Income Approach Cost less Depreciation, and the Market Data Approach.
• Market Data Approach – the market value estimate is predicated upon prices being paid in actual market transactions and current listings. Recent transactions are analyzed to arrive at a probable value.
• Cost Less Depreciation – this approach to value is conducted by determining the current cost of an asset and deducting for depreciation, functional and economic obsolescence, and physical deterioration. It is based on the principle of substitution, which states that a knowledgeable buyer will not pay more for an asset than the cost to produce a substitute asset with the same utility.
• Income Approach – the Income approach considers future revenue streams to derive a present value. This approach is often difficult to implement, given that revenue streams cannot easily be itemized for individual items. However, in some circumstances this approach is very applicable and can be implemented.
We are highly qualified and experienced
All appraisal partners are Certified Machinery and Equipment Appraisers (CMEAs) with experience in the restaurant industry. Our team of appraisers is knowledgeable in the items being appraised and current with their appraiser certification credentials. Final reports are always reviewed by Robert Brumbaugh who is a Master Certified Machinery and Equipment (MCMEA) appraiser. Bob is one of about 32 MCMEA’s out of the nearly 550 affiliated appraisers around the world.
If you have questions or would like to discuss an equipment appraisal in more detail, please call us at 919-870-8258 or send us a request for more information.