Appraisals

What is Your Asset Strategy?

Your assets don’t have to be money down the drain. By leveraging Harry Davis & Company’s decades of asset valuation experience and marketing reach, you’ll develop an equipment strategy that makes sense for your immediate business needs.

Your Source for Unbiased Valuations

Our appraisals services are utilized for many scenarios, including:

  • Asset-based lending / financing
  • Mergers and acquisitions
  • Purchase price allocation
  • Lease-end valuations
  • Insurance purposes (replacement cost, loss settlement, etc.)
  • Litigation
  • Risk management

Harry Davis & Company‘s appraisal staff includes accomplished and credentialed professionals with memberships and certifications from the American Society of Appraisers (ASA), where they are instructors in the Machinery & Technical Specialties discipline.

All appraisal reports comply with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by The Appraisal Foundation, which was established by Congress and sets the standards, qualifications, and guidance on valuation methods and techniques for all appraisal professionals.

Harry Davis & Company appraisals provide our clients unbiased transparency and insight into the value of the subject assets – rest easy that our conclusions of value can be relied upon.

Uniform Commercial Code Filing

Upon completion of any physical appraisal, we can provide an Exhibit A with a detailed equipment listing that can be filed with your UCC1 so there is no question what is either minimally or maximally included in your lien.

As a preferred and approved appraiser for several major financial institutions, we have worked in the market and evaluated its fluctuations. Let us put our experience and expertise to work for you.

For more information on how Harry Davis & Company can assist you with your appraisal needs, contact aaron@harrydavis.com.

Definitions of Value

Reproduction Cost New
The cost of reproducing a new replica of a property on the basis of current prices with the same or closely similar materials, as of a specific date.

Replacement Cost New
The current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date.

Fair Market Value
An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date.

Fair Market Value in Continued Use with Assumed Earnings
An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date and assuming that the business earnings support the value reported, without verification.

Fair Market Value in Continued Use with an Earnings Analysis
An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date and supported by the earnings of the business.

Fair Market Value – Installed
An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, considering market conditions for the asset being valued, independent of earnings generated by the business in which the property is or will be installed, as of a specific date.

Fair Market Value – Removed
An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, considering removal of the property to another location, as of a specific date.

Liquidation Value in Place
An opinion of the gross amount, expressed in terms of money that typically could be realized from a properly advertised transaction, with the seller being compelled to sell, as of a specific date, for a failed, non-operating facility, assuming that the entire facility is sold intact.

Orderly Liquidation
An opinion of the gross amount, expressed in terms of money, that typically could be realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis, as of a specific date.

Forced Liquidation Value
An opinion of the gross amount, expressed in terms of money, that typically could be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.

Methodologies of an Appraisal

The three valuation methodologies, accepted by the leading appraisal institutions, used to derive value include the cost approach, sales comparison approach and income approach. These appraisal methodologies are defined as follows:

Cost Approach: This approach is based on the proposition that the informed purchaser would pay no more for a property than the cost of producing a substitute property with the same utility as the subject property. It considers that the maximum value of a property to a knowledgeable buyer would be the amount currently required to construct or purchase a new asset of equal utility. When the subject asset is not new, the current cost new for the subject must be adjusted for all forms of depreciation and obsolescence as of the date of the appraisal.

Sales Comparison Approach: This approach involves the collection of market data pertaining to the subject assets being appraised. This approach is also known as the “Sales Comparison Approach.” The primary intent of the market approach is to determine the desirability of the assets through recent sales or offerings of similar assets currently on the market in order to arrive at an indication of the most probable selling price for the assets being appraised. If the comparable sales are not exactly similar to the asset being appraised, adjustments must be made to bring them as closely in line as possible with the subject property.

Income Approach: This approach considers value in relation to the present worth of future benefits derived from ownership, and is usually measured through the capitalization of a specific level of income.