myCMEA understands that pinpointing a value on your industrial, commercial and institutional machinery and equipment is daunting enough without having the process be long and ardous. Rigorous and in-depth training as well as our distinguishable credentials ensure that the process results in a straightforward, accurate and independent appraisal.
myCMEA 5-Step Certified Appraisal Process
Discovery
The first step is to identify the assets which will be appraised. On the right side of this page, you can review the types of machinery and equipment that we appraise. myCMEA can appraise individual pieces, groups of equipment or an entire facility.
Then we will establish the purpose of the appraisal. Scenarios calling for appraisals can be found on our Benefits page.
The CMEA’s purpose is this step is to identify the extent and scope of the appraisal through the preliminary equipment list (or depreciation schedule).
Proposal
The CMEA presents the client with an engagement letter, highlighting the findings in the Discovery step. It also provides an overview of the appraisal process. A machinery and equipment appraisal may utilize different valuation approaches or concepts in the following areas: Fair Market Value, Orderly Liquidation Value, Forced Liquidation Value and Salvage Value.
There are three types of machinery and equipment appraisals which can be performed: Inventory, Site Inspection and Desktop. Availability of an equipment list (or depreciation schedule) and the CMEA’s required involvement level will determine the type of appraisal chosen.
The assignment fee is based on the type of appraisal being performed. It is also determined by the number of pieces and types of machinery and equipment being appraised. The engagement letter delineates all aspects of the appraisal, sets a valuation date and states the fee for the assignment. A 50% deposit is due on the total project fee upon agreement along with the client’s engagement letter signature.
Appraisal
Once the valuation approach and appraisal type are agreed upon, the actual appraisal can begin. The CMEA will utilize three different methodologies in determining machinery and equipment value: Cost Less Depreciation, Market Data Analysis and the Income Approach.
The CMEA utilizes data collection forms, photographs (produced by either the CMEA or the client depending on the type of appraisal being performed) and interviews with personnel familiar with the assets being appraised.
Written Report
The CMEA then produces one of the two USPAP-compliant appraisal reports-either Summary or Restricted Use. The essential difference between these reports is in the level of detail provided. Generally, if the client will be the sole user of the report, then a Restricted Use will be produced.
Delivery
The written Certified Machinery & Equipment Appraisal Report is delivered in person by the CMEA to the client. The remaining half of the assignment fee is due upon delivery of this report.
