Having been a machine tool dealer for over 20 years and an appraiser for much of that time, one of the most common questions I receive is, “what type of appraisal should I get?” After a series of questions from my side, we generally learn that the customer’s needs are like most manufacturer’s needs – they need a current value on their machine (or machines) and do not require any complicated approach to value. There are various approaches to value.
What most manufacturers require when looking for an appraisal is called a “Market Value” (or “Fair Market Value”/ “FMV”) approach. The purpose is to declare the value of a machine if sold by a willing seller and purchased by a willing buyer, with no pressure on the situation (ie: no foreclosure, legal issues, or timeline).
I have found that owners of machine shops generally require a Market Value appraisal so that a partner, potential buyer, or lending institution can know the value of a machine at a point in time.
If you find yourself in this situation, please contact our offices our offices. We have three certified appraisers on staff and are longstanding members of the Association of Machinery and Equipment Appraisers (AMEA). It would be our pleasure for one of our certified appraisers to be of service.