Eagle Creek Appraisers begins the process with a detailed discussion with client or intended user to the scope, purpose and intended use of the USPAP Compliant Certified Machinery & Equipment Appraisal. In order to make the engagement bidding process as accurate as possible we ask the client to provide the following information:
Upon receipt and review we will provide an Engagement Agreement outlining the Scope of Work, Appraisal Cost, Deliverables and Time Frame. Only upon written acceptance from the Client will the Engagement be scheduled. While we have provided numerous "Desk Top Appraisals" it is our policy whenever possible to provide "onsite inspection" of the subject assets.
The Onsite Inspection:
We will ask for contact information for the subject company or assets. We will make contact and schedule a time for inspection. Depending on the number of assets and locations the inspection can take multiple days. It is in the best interest of all parties to have a representative of the company or assets assist with the identification and locations. Onsite we can either represent ourselves as representatives for an official appraisal or for issues of confidentiality or employee issues we can simply be doing an insurance audit. We never want to misrepresent ourselves, however we have the tenure and experience to understand the need for discretion when necessary. Each item identified will be documented, photographed and inspected.
Upon completion of the onsite inspection our team will conduct comprehensive research of major assets and support equipment identified during the onsite inspection. This research will be completed through public, industry specific and proprietary online and published sources. This includes new, resale and auction values. Our most common request is for Fair Market Value - In Continued Use (FMV-CU) however we have on many occasions provided upon request Orderly Liquidation Value (OLV) as well as Forced Liquidation Value (FLV).
When at all possible for appraisals requiring Fair Market Value- In Continued Use (FMV-CU) we will attempt to utilize the Market Data Approach (M). This is the most common asset valuation approach for an on-going entity or marketable asset. For assets that are antiquated, unique and industry specific or custom the Cost Approach Analysis (C) maybe utilized in which the value of a property is derived by estimating the replacement cost of the asset or improvement and deducting therefrom the estimated depreciation. The Income Approach (I) is rarely utilized in Machinery & Equipment Appraisals as it is considered hypothetical. The Approach for each item is indicated - (M), (C) or (I) for each item in our report for clarity to the Intended User.
A detailed USPAP Compliant Summary Appraisal Report will be provided to the client and all intended users. Additional information regarding the reports contents is available in the Documentation section of this site. The report will be provided in hard copy and if required an electronic PDF version can be supplied.