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Why Business Owners Need a CMEA

June 16, 2010

At some point in every business owner’s career, he or she needs to know how much his or her machinery and equipment are really worth.

But determining that value is something best left to the professionals. Why? Because the report that states the value can end up in the hands of a lot of entities – lenders, the IRS, attorneys, and a court of law, just to name a few. They all require a USPAP-compliant, substantiated Certified Equipment Appraisal. If an appraisal is prepared by anyone other than a qualified appraiser, it won’t hold up to scrutiny.

A Certified Machinery & Equipment Appraiser (CMEA) has the expertise, certification, and knowledge to conduct an independent, unbiased machinery and equipment appraisal. CMEAs abide by the regulations and ethics of the Uniform Standards of Professional Appraisal Practice.

Why would a business owner need a CMEA’s services? To be certain they’re not selling too low or pricing their machinery and equipment above the fair market value. Buyers need to know that they’re not paying too much to purchase the machinery and equipment. In addition, the IRS requires buyers and sellers to agree on the value of tangible assets involved with a business transfer. They must “allocate” a particular value for tangible assets, as well as goodwill.

By: NEBB Institute

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