Understanding The Intricacies Of Each Asset
During the appraisal, it is not enough to simply identify an asset. A proper valuation comes from understanding the intricacies of the equipment and recognizing the assets feature and functions.
What An Appraiser Does:
- Assembles pertinent data.
- Conducts Market Research.
- Applies appropriate analytical techniques.
- Applies knowledge, experience and judgment.
- Arrives at a conclusion of Value.
What Factors Are Considered When Determining Value?
- Condition of the Assets
- Features and Options
- Installation Requirements (When Applicable)
- Removal Requirements (When Applicable)
- Market Conditions and Trends
- Sales of Comparable Assets
- Replacement Cost(s) (When Applicable)
The Valuation Process
Red Stripe Inc. expedites the valuation process using a proprietary database and market data. The strength of this database, combined with the on-site experience of our appraisal team, results in a well-documented and thoroughly supported appraisal report that can be relied upon to make business decisions, support expert testimony, and insurance coverage.
Valuation Methods & Strategies
Determining the strategic or economic value of the assets can have a significant impact on the appraisal value. For example, a strategic advantage could be that the company’s products penetrate existing market barriers. An economic advantage could be that the company has existing technology that can reduce the cost of manufacturing. An experienced appraiser can determine the appropriate appraisal valuations methods and strategies to use in order to maximize the real value of the company and return a higher value for the seller. Some examples are:
- Removal Value Versus In-Place-Value
- Functional Obsolescence Versus External Obsolescence
- Forced Liquidation Value Versus Orderly Liquidation Value
Fully Compliant Appraisals
Appraisals are fully compliant with the Uniform Standards of Professional Appraisal Practice (USPAP).