Appraisals for Businesses

On-Site and Desktop Appraisals by Certified Professionals

A desktop appraisal is performed without the appraiser physically being present on the site of the assets for the appraisal. Thus, no physical inspection of the assets takes place. A detailed asset listing must be provided. The appraiser depends only on the information he/she is given by the company.There are various reasons to obtain an appraisal of a business from two different approaches. The approach that is best to use is dependent on the purpose of the appraisal.

There are two ways to value a company. The first is broadly described as Corporate Appraisals that looks at the business from a financial perspective. The second is a valuation of the underlying or hard assets of the Business including machinery and equipment, inventory, real estate and Intellectual Property.

Corporate Valuations & Why They Are Needed:

  • Buy/Sell Agreements
  • Insurable Value
  • Financing
  • Tax Purposes
  • Gift Planning
  • Retirement Planning
  • Mergers and Acquisitions
  • Divorce Settlements
  • Estate Settlements
  • SBA Loans
  • Trust Agreements
  • Partner/ Owner Buy Out/ Buy In
  • Litigation Support
  • Sarbanes-Oxley

Corporate Valuations are used mostly for internal planning purposes.

Hard Asset Valuations & Why They Are Needed

Asset Based Lending Decision Making. industrial valuations allow lenders an independent third-party perspective of collateral value to determine advance rates. Maynards provides both Machinery and Equipment values as well as Inventory appraisal.

Machinery and Equipment Appraisals typically provide a basis of value as if the company would be liquidated. The reason for this is that Lenders who advance monies against the equipment want to know the worst-case scenario as it relates to their risk. Machinery and Equipment is typically appraised on a Forced Liquidation Value and Orderly Liquidation Value premise while Inventory is typically appraised on a Net Orderly Liquidation Value premise.

Different Lenders may require some type of Net number which takes out the actual cost of the auction but suffice it to say most Lenders want some type of auction value to advance money on.