orderly liquidation value
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:
Restaurant Equipment Appraiser has Restaurant Industry Background
Over the Memorial Day weekend, I had the priviledge of inspecting a series of restaurants for a machinery and equipment appraisal. Because the owners declined to provide a listing of Subject Assets, I took my lovely and clever wife along as “clipboard” assistant. She wrote while I measured, called out manufacturer names and model numbers, took pictures with my faithful Casio Exilim.
One reason I like restaurant appraisals is that I spent several years in my 20s cooking in Aspen, Tucson and Phoenix. It’s fun to be back in a professional kitchen, chatting with the chef about Hobarts and Groen stock pots, even if I am using a tape measure instead of a spatula! So I’m cook and food and beverage controller turned Restaurant Appraiser.
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.
