Cambridge Partners has appraised equipment regionally, nationally and internationally for Fortune 100 companies as well as small and middle-market firms and privately-held businesses. For over twenty-five years we have been appraising all types of equipment, machinery and other personal property. We have appraised billions of dollars worth of personal property assets.
As Cambridge Partners is not involved in the auction or reselling of personal property, these machinery and equipment appraisals are free of any bias or self-interest. Our work adheres to the Uniform Standards of Professional Appraisal Practice (USPAP).
Appraisals of personal property are performed in order to determine:
- Allocation values in financial transactions,
- To determine the level of adequate insurance coverage or the extent of loss,
- To assist in estate tax settlements,
- To aid in personal property tax appeals, or for other financial reasons.
- To estimate fair market value of the fixed assets for a business valuation whereby the Net Asset Value method of the cost appraoch is being utilized.
Cambridge Partners confer with the client in order to establish the premise of value: value-in-exchange, value-in-use, orderly liquidation value, or forced liquidation value.
Value-in-exchange: the amount that the personal property is worth in the marketplace considering adaptability, standard equipment demand, all forms of obsolescence, and other causes and effects.
Value-in-use: the amount that the personal property is worth to the user and may be based on the items’ capability of producing a product or part of a product as a measured percentage of profit.
Orderly liquidation value: the amount of gross proceeds which could be expected from the sale of assets held under orderly conditions given a period of time in which to find a purchaser(s) considering a complete sale of all assets, as is, where is, and all sales made free and clear of all liens and encumbrances.
Forced liquidation value: the estimated gross dollar amount which could be realized at a properly conducted public auction held under forced conditions and under present day economic trends.
A personal property appraisal report should contain a letter of transmittal, an identification of the property being appraised, a stated purpose for the appraisal, a definition of the premise of value, a description of the machinery and equipment that is being appraised, a determination of highest and best use, a determination of value, a final estimate of value, a certification, and a detailed inventory of the machinery and equipment that is being appraised.
Leasing Analysis and Lifing Studies: For companies contemplating leasing transactions or a sale-leaseback, Cambridge Partners performs real estate and equipment appraisals, as well as lifing studies. Our tangible asset appraisal specialists have substantial experience valuing complex real estate and equipment assets, and can estimate current value, residual value and opinions of total useful life (or estimated remaining economic life) for assets subject to a lease transaction.
Whether it’s bearings or fiber optic cable, packaged meats or ice cream, twist drills or surgical instruments, we have appraised the equipment employed in manufacturing these products.