Appraisals - Appraisal services are requested year round for a variety of applications, including:
Financing: Financial institutions require a certified appraisal in order to adequately support their lending decisions. Appraisals validate the assets of the debtor and aid in decisions such as recovery and liquidation. Appraisals are valuable through the entire life of a loan, from pre-loan evaluations to interim loan monitoring and for work-out recovery assessments.
Tax Reporting Purposes: A certified appraisal provides an accurate value of the company's tangible assets, which is required for business valuations, tax reporting, and financing.
Purchase or Sale: When an owner is selling a company, a certified appraisal provides the Fair Market Value of the company's assets, allowing the owner to set an accurate sale price. The appraisal will provide the buyer with the assurance that the selling price is fair and accurate.
The appraisal services offered by ATEC include:
Onsite Appraisals: ATEC will travel to each location to personally view the assets. Detailed descriptions and conditions of the assets are noted while on site, and photos are taken (if permitted).
Desktop Appraisals: ATEC performs an appraisal using a detailed list of the assets, usually provided by the client or company. ATEC's appraiser coordinates with personnel at the company to obtain additional information about the assets, if required. This method is useful for companies that may have equipment over several locations, such as a construction company with equipment on several job sites.
Combination: ATEC can combine the appraisal services by performing an onsite appraisal for one location and a desktop appraisal for another. This option provides a cost effective alternative for our clients by reducing the cost of travel expenses.
ATEC's appraisals are conducted by certified appraisers in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). The appraisal team for each assignment is selected by their specialized area of expertise.
Type of Valuation
There are several generally accepted value premises that may be requested; the most commonly requested are described in detail below:
Forced Liquidation Value: The gross amount typically realized at a public auction without reserve, which has been properly advertised, and sold on a piecemeal basis in "as is, where is" condition, usually within 90 days of the date of the appraisal.
Orderly Liquidation Value: The estimated gross amount the assets could typically realize at a privately negotiated sale, properly advertised and professionally managed, where the items are sold on a piecemeal basis in "as is, where is" condition. This sale occurs over an extended period of time, usually within four to six months as of the date of the appraisal.
Fair Market Value: Fair Market Value is defined as the amount at which property might exchange if purchased between a willing buyer and a willing seller. Fair Market Value has no restrictions as to time frame to sell the property.