The ABCs of Certified Appraisals

by JHarris • on June 2, 2011 • in Business Owners, Machinery and Equipment Appraisal

Just as it’s important for a child to learn his or her ABCs, it’s important to know the ABCs of certified appraisals.

Accuracy

A certified appraiser will determine which valuation standard will be applied to deliver the most accurate appraisal for a client’s unique situation. Standards include fair market value, liquidation value, scrap value, and so forth.

Best Practice

Certified appraisers adhere to the standards set forth by The Uniform Standards of Professional Appraisal Practice (USPAP), the standard for professional appraisal practice in the United States. USPAP compliance is required by professional appraisal associations, client groups, and by federal, state, and local agencies.

Certification

The best appraisers have earned the credentials necessary to professionally appraise businesses, equipment, and machinery, including Certified Machinery & Equipment Appraiser (CMEA), Certified Senior Business Analyst (CSBA), Certified Business Counselor (CBC), and Board Certified in Business Appraisal (BCBA).

Defensible

Certified appraisers do not guess, or rely solely on book value or on the opinions of non-certified persons. Appraisals need to stand up to the scrutiny of the IRS, the courts, and other regulating agencies.

Ethics

A certified appraiser is held to the highest ethical standards, to protect the public from unsubstantiated or questionable machinery and equipment appraisals. Marketing & Consultant Serviced, Inc.  has its own code of ethics, which are even stronger than the industry standards.


By: Marketing & Consultant Services, Inc.

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International Society of Business Analysts (ISBA) Membership and How it Can Help You

by JHarris • on June 2, 2011 • in SBA

Networking can be one of the most inexpensive ways of promoting your business. By learning about the businesses of others in your networking organization you can refer business to them with the hope that they’ll refer business to you once you’ve gained their trust. Often, the only cost is a bit of your time.  

That’s the beauty of joining the International Society of Business Analysts (ISBA). The ISBA is made up of a large group of business analysts who specialize in all the different areas of appraisal, including running, appraising, and transferring businesses. You can’t be all things to all people, but by joining a group like the ISBA, you have a group of specialists from which you can draw, and in turn, your business will profit from referrals and referral fees. By becoming a member of the ISBA, you increase your network, increase your knowledge, and increase your profits.

When you join the NEBB Institute, ISBA membership is automatic. For more information, visit the ISBA website or the NEBB Institute website.

By: Marketing & Consultant Services, Inc.

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International Society of Business Analysts (ISBA) Membership and How it Can Help You

by JHarris • on May 26, 2011 • in SBA

Networking can be one of the most inexpensive ways of promoting your business. By learning about the businesses of others in your networking organization you can refer business to them with the hope that they’ll refer business to you once you’ve gained their trust. Often, the only cost is a bit of your time.  

That’s the beauty of joining the International Society of Business Analysts (ISBA). The ISBA is made up of a large group of business analysts who specialize in all the different areas of appraisal, including running, appraising, and transferring businesses. You can’t be all things to all people, but by joining a group like the ISBA, you have a group of specialists from which you can draw, and in turn, your business will profit from referrals and referral fees. By becoming a member of the ISBA, you increase your network, increase your knowledge, and increase your profits.

When you join the NEBB Institute, ISBA membership is automatic. For more information, visit the ISBA website or the NEBB Institute website.

By: John Harris

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.Comments Offfrom → Certified Machinery and Equipment Appraisal, Certified Machinery and Equipment Appraiser, CMEAThe Distinction Between MEA and CMEA

by JHarris • on May 26, 2011 • in Machinery and Equipment Appraisal

The designation of Certified Machinery & Equipment Appraiser (CMEA) is awarded by NEBB Institute, the industry leader in USPAP-compliant Machinery & Equipment Appraisals.

A CMEA undergoes comprehensive training on the approaches to value, depreciation, value determination, USPAP regulations, and ethics. A Machinery & Equipment Appraisal submitted by a CMEA will withstand scrutiny by the IRS, courts, CPAs, and others.

The MEA designation, however, is not the same as a Certified Machinery & Equipment Appraiser.

The professional designation of the more than 300 CMEAs within the SBA Membership Directory should not be confused with a MEA professional designation following a member’s name.

A Senior Business Analyst (SBA), a title conferred by the International Society of Business Analysts, displays the credential of MEA but is neither authorized nor trained to submit a USPAP-compliant Certified Machinery & Equipment Report that is defensible and will hold up to scrutiny. An MEA member is only authorized to analyze and consult concerning a machinery and equipment appraisal.

Make sure you’re dealing with a CMEA when having your machinery or equipment appraised.

By: John Harris

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Financial Advisors Urging Business Owners to Know the Value of Their Businesses

by JHarris • on May 19, 2011 • in Machinery and Equipment Appraisal

Because of the economic downturn, many business owners are reluctant to think about the value of their businesses. Fearful that their businesses have lost value, it’s the last thing they want to hear about. An article in Financial Advisor suggests that many business advisors are urging their clients who own businesses to have their businesses valued in order to gauge their business health and for planning purposes, including adjusting estate and succession plans.

Business owners have different reactions when they find out that their businesses are worth less than they once were. Some decide to delay selling their business, and others use it as an opportunity to make necessary changes. One business owner who was interviewed said that he was glad to know the value of his business because it enabled him to determine steps he needed to take to improve the business and prepare to potentially sell it within 10 years.

According to experts, some businesses are worth 30% less than a few years ago, and they argue that understanding the value of a business can help owners determine whether or not they should sell their business or bequeath it to the next generation. On a positive note, a lower valuation can benefit owners in terms of taxes right now. The article highlights the fact that if owners are planning to pass on the business to their children, now might be the time to do it, since estate taxes are “expected to rise next year and new restrictions on use of trusts could also be coming soon.”

By: Nathan Bazzle, CMEA

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Looking for a Business Consulting Support Network? Check out the International Society of Business Analysts

by JHarris • on May 19, 2011 • in Machinery and Equipment Appraisal, SBA

For individuals in the business consulting industry, whether it be machinery and equipment appraisers, business brokers, bankers, or a variety of other consultants, it can be difficult to find the right network of professionals in related fields to call on when necessary. The International Society of Business Analysts (ISBA), which is owned by the NEBB Institute, is an international network of business consulting professionals. The organization is designed to educate and draw expertise from its members on all aspects of the ever-changing business consulting industry.

Through its three levels of membership, education, and shared expertise, ISBA supports a member base of experienced and knowledgeable professionals who are able to provide all of the resources to assist clients in all areas of business consulting, including but not limited to:

  • Business Valuations
  • Leasing
  • Buy/Sell Agreements
  • Business Transfers
  • Tax Purposes
  • Cost Segregation
  • Sarbanes-Oxley
  • Insurance Purposes
  • Gift Planning
  • Retirement Planning
  • Trust Agreements
  • Estate Planning
  • 1031 Exchanges
  • Converting From C To S Corp
  • Partnerships
  • Litigation Support
  • Bankruptcy
  • Liquidation
  • Property Taxes
  • Strategic Planning

Are there any business consulting areas that you could use professional assistance with? If so, check out ISBA’s three levels of membership: Associate Membership, Senior Business Analyst, and Certified Senior Business Analyst.

For more information, visit theISBA website.

Marketing & Consultant Services, Inc. strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.

By: Marketing & Consultant Services, Inc.

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1 Tip

by Nbazzle • on April 7, 2011 • in Blog, Machinery and Equipment Appraisal

1 Tip that will save you 20% and get Higher Values for your Appraisal

#1 Tip: Create your own “Perfect Asset List” with the following components to make sure you receive the highest values possible for your equipment.  Don’t leave this to an “Appraiser” that may be an Accountant or Auctioneer in disguise that has never seen your type of equipment before.  Make sure you give an asset list that specifically describes every piece of equipment with the following: Make, Model, S/N, Age, Condition, New Cost, Specifications, Options, & Hours / Miles.  We find that this one thing will make sure that an “Appraiser” will not miss that $10,000 option your specific machine has.

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Never Sell Machinery or Equipment Without a Certified Appraisal

by JHarris • on March 11, 2011 • in Business Brokerage, Machinery and Equipment Appraisal

Due to sluggish market conditions, there is a large amount of equipment and machinery available to potential buyers. If a business owner is looking to sell equipment or machinery, he or she needs to know how much their assets could potentially be worth in the market. And for that reason, potential sellers need to know what it’s all worth.

The differences among the types of machinery and equipment asset valuations – orderly liquidation value, forced liquidation value, and fair market value – are dependent upon the business’s situation and the time frame in which the assets need to be liquidated. Of course, there are other circumstances that determine the current value of equipment, such as in the case of custom machinery.

Some sellers, like those whose businesses are in dire circumstances, may be forced to sell and get the best price for the equipment as quickly as possible. However, for others who may not be in such a rush to sell, knowing the market value of their equipment can help them make better informed decisions about whether to sell now or not.

It is essential for business owners to know the value of their equipment, especially if they are looking to sell so that they can receive the best possible price in the current market. A Certified Machinery and Equipment Appraiser (CMEA) can determine that value.

Marketing & Consultant Services, Inc. endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice in Kansas, Nebraska, Oklahoma, and Missouri. We provide a dynamic international network, and certifies professionals in the art of machinery/equipment and business appraisal and brokerage.

By: Marketing & Consultant Services, Inc.

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Collateral Appraisal Can Help Small Businesses During Loan Application Processes

by JHarris • on March 11, 2011 • in Business Brokerage, Business Owners, Machinery and Equipment Appraisal, SBA

A recent Wall Street Journal article, “Firms with Collateral Gain an Edge,” suggests that even in the current economic environment, banks are lending; however, they are more likely to lend to businesses that have tangible collateral.

According to the article, companies with tangible assets such as machinery and equipment or property are “getting a first look by banks, even when their cash flow and creditworthiness aren’t as strong as businesses with less collateral.”

BoeFly.com asserts that businesses that are asset heavy, such as restaurants, hotels, manufacturers, retailers, and real estate companies, are finding more luck with loan applications than those that are not.

Banks are conducting more careful due diligence, which includes their own certified collateral appraisals to help ensure that they can get some of their investment back if a loan defaults. Having an impartial appraisal of your tangible assets when you approach lenders can help increase the chances that your small business loan application gets more than a passing glance from lending institutions.

For more information, you can also check out our last blog post from this week, “The Role an Appraisal Plays in the Eyes of Lenders.”

Marketing & Consultant Services, Inc. endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. We provide a dynamic international network, and certified professionals in the art of machinery/equipment and business appraisal and brokerage.

By: Marketing & Consultant Services, Inc.

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The Role an Appraisal Plays in the Eyes of Lenders

by JHarris • on March 11, 2011 • in Business Brokerage, Machinery and Equipment Appraisal, SBA

Most would-be borrowers probably aren’t aware of how important an appraisal is when they’re seeking a loan. When determining if a business is a good investment risk, lenders will often examine the so-called “Five Cs of Lending”. These five Cs are:

1. Character – Is the business trustworthy? The business’s financial performance, credit report, management, and payment trends are examined.

2. Capital/Capitalization – What is the financial position of the business? This category includes resources, fixed assets, net worth, and the owner’s equity.

3. Capacity/Cash Flow – Does the business have funds available to repay the loan? This takes into account whether or not the borrower can continue to pay for all other business expenses, personal needs, etc.

4. Collateral – Does the business have assets that can be used as security should the loan default?

5. Conditions – What are the external market factors, including competition and market trends?

Even in today’s tight economic environment, lenders backed by the SBA are lending money, but they are increasingly more cautious. They are conducting more careful due diligence, which includes their own certified appraisals of collateral to ensure that they will recoup their losses should a loan default.

Having all the Cs covered – including having a defensible, impartial asset appraisal in hand – prior to seeking a loan can help increase the chances of being approved. Or, if there are some areas where a business may be weak in the eyes of lenders, a business owner can use this information to make changes and improve potential borrowing success. Understanding what lenders are looking for and how a certified appraisal fits into lending criteria can help business owners find the funds they need to grow.

Marketing & Consultant Services, Inc. endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. We provide a dynamic international network, and certified professionals in the art of machinery/equipment and business appraisal and brokerage.

By: Marketing & Consultant Services, Inc.

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