This is a quick guide to preparing for an Appraisal so you do not have to pay “Stupid Tax” in other words extra money because you made a mistake. First, for more information visit our website at www.certifiedconsultinggroup.com. We have prepared a Free 1 page Equipment Appraisal Cheat Sheet for you and a in depth 20 page eBook that will give you the edge you need when dealing with an Appraisal.

In today’s Banking and Business Buy / Sell environment many times you will need an Appraisal. With that in mind here are a few of the primary things you should know.

Define your need & choose your appraisal value (There are 12 total—these are the most used)

• Fair Market In Continued Use—Highest values based on market data, includes adjusted install and tweak in costs.
• Orderly Liquidation—Price you will receive selling your equipment over time to an interested buyer, Mid Value Range
• Forced Liquidation—Commonly referred to as Auction Value—Lowest Market Based Value
• Scrap—How much is it worth based on weight.
• Your Need will define the value you want your equipment to come in at: Low, Mid, or High Values

Prepare your Asset / Depreciation / Equipment List
Create your own “Perfect Asset List” with the following components to make sure you receive the highest values possible for your equipment.  Don’t leave this to an “Appraiser” that may be an Accountant or Auctioneer in disguise that has never seen your type of equipment before.  Make sure you give an asset list that specifically describes every piece of equipment with the following: Make, Model, S/N, Age, Condition, New Cost, Specifications, Options, & Hours / Miles.  We find that this one thing will make sure that an “Appraiser” will not miss that $10,000 option your specific machine has.

Interviewing the Appraiser—Questions to Ask

1. Are you Certified? By who? Do they test? What Designations do you hold?

2. What is your Appraisal Education background? What experience do you have with my type of equipment?

3. Can you meet my deadlines? How long will the process take?

4. Are you USPAP Compliant?

5. What Approach to value do you take and is it documented?

6. What values can I expect to receive? (Fair Market, Orderly, Etc.)

7. How do you charge and what are your fees?

A Certified & Professional Appraiser will easily be able to answer these questions and more.

Tip: 99% of Auctioneers, Dealers, and Accountants are NOT CERTIFIED!

To Learn More about:

• Negotiating the Fee!
• What Appraisers Actually do!
• And 11 Secrets of Appraisers
• Also—A deeper understanding of the topics discussed in this guide

Download our FREE 20 Page eBook

in our Next Issue: The Quick Do’s and Don’t of a Site Visit

Nathan Bazzle, CMEA CSBA – Author of “Secrets of the Machinery Appraisal Industry – A Blueprint to saving Time and Money”

President of Certified Consulting Group

The Marketing you are handing out right now will expire and be trash in 6 months…

We do many Business Valuations and Machinery Appraisals because of our website, marketing we have handed out live,  and through 2nd and 3rd degree connections when it finally comes back too us (sometimes this is years later). Also our clients tend to use us years apart like at times of growth (getting Loans or Buying / Selling their business) – Or during hard times when a CPA or Lawyer is usually involved. With that in mind it is ULTRA important that our Marketing material has the right information on it no matter when it finally gets to the client.

Here are 3 Things you should do to make your marketing NEVER expire:

WARNING: You May not like what you hear

1. GET YOUR OWN NUMBER: Do not use the companies 800 number or your desk number unless your OWN the company, Even then I would suggest getting a Google Voice Number that can be your permanent number that you can route to any other phone. Why spend all the time marketing and handing out cards that odds are will be a bad phone number in less than 3 years.  Or if you are an employee do you dare send your favorite customers through the 800 number. Here is a test – call your own 800 number and act like a customer and see if you can easily get routed back to yourself.

2. GET YOUR OWN EMAIL ADDRESS: Same reasons as above, but also add domain name changes and other things like hacked corporate accounts and all of a sudden your customers can’t reach you.  Here I suggest using a Gmail account – Yes I know its a free account but in my experience Gmail has better spam filters built in than most corporate filters. Also almost all corporate accounts can be routed to Gmail, your data phones play better with Gmail, and ultimately you never miss another email. Here some of you are saying “But I switch my email often to stop spam”, WHAT? Here is a suggestion, unsubscribe from all the retailers adds, filter the annoying sales people you are never going to give business too anyways, and keep that line of communication open to your current and future customers.

3. GET YOUR OWN WEBSITE: Oh this one scared half of you to death.  Imagine this: You highlight how wonderful the offer of the month is, talk about how you will provide some type of ultimate customer service on your widget, and … (wait for it) have them actually call and sign up with YOU – not a random customer service person on an 800 number. Or worse yet your Corporate site is a static information dump and the potential customer gets bored and clicks on that shiny google adwords offer (your competitor). I see a Salesman of the Year Awards in your future.

There are many more things to do down this road and I may write about them later or you can just call me on my Google Voice Number 317.324.8026 and we can talk about them.

These will get you started – Do these 3 Things and get new Business Cards printed NOW. Yes, you may have to buy your own business cards and maybe even your own flyer’s – but it will be worth it.

Business Owners – Instead of being mad over this think of all the extra sales you and your people will make and the fantastic customer service that will be provided because your people are easily accessible. The customers can actually call you from that piece of marketing that’s been sitting in their desk for 2 years just waiting for a need.  There is nothing more frustrating than trying to email someone or call them and the email or number are dead because an IT guy shut it down after the person left.  Another thought is that employee will not go into the same field and can then refer that business back to you.

I have seen so many moves in the past few years especially in Sales, Commercial Lenders, and Managers. That I know a lot of Business is slipping past in a time where you need to make as many sales as possible. Take this advice as you will, but know that as I meet top level sales guys and top level professionals they are more and more often having their own information on their own cards.

Nathan Bazzle, CMEA CSBA
Nathan is the President of Certified Consulting Group – A Business Valuations and Certified Machinery and Equipment Appraisal Company.  Find more from Nathan at www.certifiedconsultinggroup.com

While reading a favorite blog in my industry i came across a very timely article I wanted to share.  All I can say is Outstanding Post – as a fellow Certified Machinery and Equipment Appraiser in Indianapolis this type of basic and fundamental information is great to share as it is affecting all of us across the country. I know here in the Indiana / Midwest area business owners are seeing substantially less dollars for their business – usually a lot of this has to do with the capitol assets taking such a beating these past few years. Another thing to consider is that now may also be a great time to sell – the economy has created a lot of investors looking to give a cash infusion to a good core business and grow it either for a sale later or because it is easier to buy a business vs. starting a new one in certain situations.

Here is the Post:

Financial Advisors Urging Business Owners to Know the Value of Their Businesses

Because of the economic downturn, many business owners are reluctant to think about the value of their businesses. Fearful that their businesses have lost value, it’s the last thing they want to hear about. An article in Financial Advisor suggests that many business advisors are urging their clients who own businesses to have their businesses valued in order to gauge their business health and for planning purposes, including adjusting estate and succession plans.

Business owners have different reactions when they find out that their businesses are worth less than they once were. Some decide to delay selling their business, and others use it as an opportunity to make necessary changes. One business owner who was interviewed said that he was glad to know the value of his business because it enabled him to determine steps he needed to take to improve the business and prepare to potentially sell it within 10 years.

According to experts, some businesses are worth 30% less than a few years ago, and they argue that understanding the value of a business can help owners determine whether or not they should sell their business or bequeath it to the next generation. On a positive note, a lower valuation can benefit owners in terms of taxes right now. The article highlights the fact that if owners are planning to pass on the business to their children, now might be the time to do it, since estate taxes are “expected to rise next year and new restrictions on use of trusts could also be coming soon.”

By: Present Value

Certified Consulting Group Blog Written by Nathan Bazzle, CMEA