Frequently Asked Questions

We specialize in Machinery and Equipment for professionals in a broad range of manufacturing industries. We do mostly on site type of valuations, but occacionally we do desktop valuations as well. The client decides what kind of valuation is required depending of who should receive the report. It could be simple reports, but more reports following the USPAP standards are in demand. 

An appraisal is a valuation of property provided by a professional appraiser. The appraiser will prepare a report for you stating an opinion of value at a given point in time for the asset. A valuation is based on research and analysis of all relevant information, based on experience, knowledge and judgment to establish a supportable opinion of value.

The headmaster of the Business School I attended when I was young gave this definition: An asset is worth as much as another person is prepared to pay the day you want to sell. While this may be true for disposals, the concept of value is more complex. USPAP has a number of value definitions based on the conditions related to the assets. Also, USPAP has different approaches to value based on the nature of the assets and the volume of information related to the asset, the market and data related to income-producing property. More details about this may be found elsewhere on this website. 

USPAP is a set of national Standards that is applicable for most U.S. appraisals. USPAP is developed by the Appraisal Standards Board (ASB) of The Appraisal Foundation. There are various standards for different purposes. The standards also contain definitions and rules for ethics, record keeping, competence, scope of work and jurisdictional Exception Rule. The USPAP is being used in the US, but also elsewhere. There are other standards as well. The most common is IVS, International Valuation Standards.

IVS Standard is a valuation standard developed by the International Valuation Standards Council (IVSC). This standard has been adopted or recogized by many valuation companies and institutes around the world. The standards apply for undertaking valuation assignments using generally recognized concepts and principles that promote transparency and consistency in valuation practice. Updated guidelines are published frequently. The latest is IVS 2020.

The cost is based on time and expenses. We charge mileage, time on the road, time on site, research time and administration. Usually we can give an estimate after visiting the site and knowing what information is available on site and in our database.  The cost of an appraisal always depends on what kind of appraisal, location, volume and type equipment you have. It also depends on what you are going to do with the report. Is it just for you or should it be used for some other purpose?

The role of the appraiser is to provide objective, impartial and unbiased opinions about the value of something. 

The content of the report depends on the standard used for the valuation job and what is required by the client. The report may be rather simple if it is for the use of a business owner and nobody else. If it is for parties outside the clients organisation it will most likely follow a Standard. Using the USPAP standard it could be Appraisal Report or Restricted Appraisal Report. In Denmark there are no compulsory standards. We have a text section describing the valuation projects, the valuation principles, details about the company, market and competitors. 

  1. Business Owners
  2. Liquidators an lawyers
  3. Lenders
  4. Insurance Companies
  5. Accountants and Auditors
  6. Private Individuals
  • Buying or selling equipment
  • Buying or selling a business.
    • A certified machinery and equipment appraisal will become a marketing tool targeted at your potential buyer prospects.
    • Though a machine might have a book value of zero dollars on the selling company’s balance sheet since it has been written off one hundred percent, the buyer of the company will be able to depreciate the asset all over again starting with its current fair market value.
    • The appraisal provides documentation on what new value should be placed on each piece of equipment or intangible assets.
  • Financing or lending applications
  • Restructuring the organisation
    • Partnerships changes
    • Buying or selling parts of the organization
    • Mergers and Acquisition
    • Transition from one type of ownership to another
    • Equipment holding / leasing arrangements
  • Debt reorganizations
  • Divorce Settlements
  • Litigations and Disputes
  • And Many More
Professional-quality appraisals can’t be done in 10 minutes or less and they are not free. Standards like USPAP are a way of quality control of the valuation applicable to property valuation.