forced liquidation value
Choosing a Bankruptcy Equipment Appraiser
When your Bankruptcy Attorney requests an equipment appraisal, it’s usually up to you to find a qualified equipment appraiser. And as you might suspect, not all machinery & equipment appraisals are created equal!
When you need an appraisal for your bankruptcy—or any other reason, for that matter—be sure that the equipment appraisal company you choose meets the four important qualifications of Accreditation, Experience, USPAP Education and Approval of your Bankruptcy Attorney.
Professional Accreditation
A professional equipment appraiser has the expertise, certification and knowledge to conduct an independent, third-party machinery and equipment appraisal. When you work with an equipment appraiser accredited by the American Society of Appraisers, you can be confident that you’ll receive a summary appraisal report with substantiated and realistic values.
Bankruptcy Equipment Appraisals: Get Legal Advice Early
Bankruptcy equipment appraisals in the Sacramento and Northern California area are not my favorite part of the equipment and machinery appraisal business; nevertheless, I regularly find myself on the phone with either a business owner or a bankruptcy attorney, working out the details for a Forced Liquidation Value equipment appraisal for an agricultural business, a manufacturing plant, factory, construction or excavating business, or a speciality production shop.
If you’re a business owner wondering whether it’s time to talk to a equipment appraiser regarding an appraisal of your business assets and equipment–whatever kind of business you may be in–do yourself a favor and call a bankruptcy attorney before you call me.
Liquidation Values: Orderly or Forced?
I recently provided an equipment and machinery appraisal report on the Subject Assets of a specialty manufacturing company in the Sacramento area, using Orderly Liquidation Value, as specified. After receiving the report, the Sacramento bank for which the equipment appraisal was done contacted me, concerned that the in-house appraisal department was finding values considerably lower than those I had submitted. Turns out they were looking at figures for Forced Liquidation Value, a different kettle of fish altogether, according to The American Society of Appraisers, Valuing Machinery and Equipment, 2000:
Premises of Value AKA Levels of Trade
The below definitions are from Valuing Machinery and Equipment, the American Society of Appraisers (2000).
Because the machinery and equipment appraiser deals with a variety of assets, most of which can be moved, it is necessary to recognize different premises of value. These can be broadly broken down into categories, distinguished mainly by an asset’s anticipated use.
