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Skipping a CMEA Can Cost You

June 27, 2012

A story this week out of San Francisco proves how important a Certified Machinery and Equipment Appraisal can be.

A company that manufactures auto parts for foreign imports had been struggling for some time before finally deciding to shutter their operations. They had a tremendous amount of inventory on hand and decided to sell it off to their competitors.

Rather than bring in a Certified Machinery and Equipment Appraiser, the company researched the resale value of the equipment on, of all places, eBay, and assigned their own values to match. They sold off almost all of the equipment and shut down operations.

The owner of the company wrote a blog about the experience and was contacted by a CMEA, who was curious about the inventory. When the former owner gave the CMEA all of the numbers and specifications of the inventory, he was devastated to find out he’d undervalued the equipment by tens of millions of dollars. The buyers certainly got a steal on that deal!

Always have a CMEA perform an equipment appraisal. A Certified Machinery and Equipment Appraisal is based on years of experience and methodical research, and is defensible, irrefutable, and substantiated.

The NEBB Institute endorses and 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: NEBB Institute

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