In 2018, The Appraisal Foundation published A Bridge from USPAP to IVS. Targeted primarily to appraisers already familiar with USPAP, it’s an invaluable and concise resource for producing appraisals in compliance with International Valuation Standards (IVS). The introduction reminds readers that the standards are “more similar than different:” Many differences in the standards are superficial…Read More
Appraisal Review Rebuttal Report for Business Litigation: Shareholder Dispute
In business litigation, accurate machinery and equipment valuations supported by evidence and logic are crucial, particularly in cases involving complex shareholder disputes over machinery, equipment, or other business assets. Whether for partnership disputes or buyouts, equipment valuations are expected to provide information needed to determine fair financial outcomes. In many cases, however, machinery and equipment…Read More
Case Study: Equipment Appraisal without Evidence – A Reviewer’s Perspective for Attorneys
In a fire damage litigation case of vehicles and material handling equipment — including a number of specialized reach lift stackers — at a major port, I came on board to review an appraisal report entered into evidence by the insurance company of the firm deemed responsible for the fire. In this case, as in…Read More
Stabilization of Value: Expanding the Appraisal Lexicon
In many of my appraisals, particularly for used in litigation, I’m frequently asked to justify the opinion of value for equipment that has outlived its expected life. Part of the general confusion can be attributed to the common misunderstanding between an accounting depreciation schedule and the practical value of machinery or equipment, including the oversimplification…Read More
Eminent Domain: Processing & Manufacturing Facilities
More than one legal organization expects that the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) approved by the 117th Congress will lead to a significant increase in eminent domain activity. These investments in public works – in the industries of transportation, energy, water resources and broadband – are expected to…Read More
New ASA ARM at NorCal Valuation
Jo Crescent, NorCal Valuation’s operations manager and co-owner, earned her ASA in Appraisal Review and Management (ARM) in January. In addition to full ARM accreditation, the American Society of Appraisers offers two other options for those interested in ARM: a discipline-specific specialty designation for current Accredited Senior Appraisers in its other disciplines and an ARM…Read More
Appraisal Review Standard of Care for Attorneys
The Association of Certified Family Law Specialists published this article in their journal’s Summer 2021 ACFLS Family Law Specialist. Appraisal review is, first and foremost, a standardized process that provides guidelines for assessing the overall quality of an appraisal relative to applicable standards, while concurrently addressing the degree to which that appraisal is credible, logical, and…Read More
Streamline Business Dissolutions with Shared Appraisal Expert
Shareholder and business partner dissolutions occur for a multitude of reasons, including disputes. Examples of dispute situations include a shareholder mishandling corporate information, a partner acting inappropriately, or a personality conflict among shareholders. In business disputes of this kind, a business valuation (BV) is the simplest and most cost-effective way to determine the value of…Read More
Lightening Complex: Fire Insurance Claims
The LNU, CZU, and SCU wildfire complexes and the River Fire in the Monterey area are ravaging California. In our area (LNU), many friends and neighbors have been evacuated; across the state, so many people have lost homes and businesses. Our hearts go out to everyone affected and we hope that these fires will be…Read More
Appraisals in the Time of Pandemic
The evening of March 12, we were on a mostly empty flight back from Pittsburgh, PA where we’d spent 4 days inspecting a chain of grocery stores for a buy/sell agreement. The TP and hand sanitizer sweep began while we were there, as the Allegheny County Health Department confirmed COVID-19 cases in the area. On March 13, as you may remember, a…Read More
3 Red Flags in Machinery & Equipment Appraisal Reports
I recently submitted a few examples of Machinery & Equipment Review problems–along with a sample review report–to an overseas valuation organization that’s putting together an in-house manual for its members. What’s interesting to me is that although this organization follows International Valuation Standards (IVS) instead of USPAP, has a very different equipment market than we…Read More
15 Most Common Appraisal Report Mistakes
Appraisal review isn’t just for appraisers. While attorneys and CPAs may be best served by hiring a trained reviewer for questionable appraisals, they can do an initial pass using a quick checklist of a handful of common appraisal report mistakes. We discuss these errors in great detail in the ARM accreditation classes offered by ASA…Read More