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Equipment Evaluations and Insurance Appraisals

About Us:

Rushton International specializes in mining, construction, fleets and processing equipment. Our hands on experience in front line and staff positions provide the client with an accurate and current evaluation of their equipment assets. This expertise provides our appraisers the ability to identify problems by sight, sound or characteristics often overlooked by the inexperienced inspector that are unfamiliar with the industry. When you retain Rushton International, your appraiser has industry experience and is not a pick up off the street. We work in our area of expertise in the best interest of our clients. We are not brokers or resellers of machinery and equipment!

Types of Appraisals:

Appraisal types are determined by a client's objective or requirement. Which could be general condition or valuation for the purpose of purchase, sale, bankruptcy or insurable value. There are two types of condition appraisals, On Site and Desk Top. The on-site appraisal is the most common and provides a hands on assessment. The client determines if this is to be a cold or hot inspection. "Cold" is defined as is where is while "Hot" inspections are performed when the asset is at operating temperature or cycle conditions. A Desk Top appraisal relies on public information for value of similar units with comparable operating conditions. Unit specific data is provided by the owner/operator as to condition, repairs and operating practices/environment, but has been not verified by the appraiser.

FAQ:

What is an Appraisal? Appraisals are the independent and unbiased process of determining the value of tangible assets as of a specific date. Appraisals are performed for several reasons that include condition reliability, fair market value or disposition of asset (liquidation, asset transfer, etc.)

When is an Appraisal needed? An Appraisal is needed when disputation of equipment or machinery requires an unbiased third party for verifying condition and or value.

Why are Value and Price often different? An equipment appraisal will provide an unbiased opinion of value at a specific date. Accounting practices such as Book Value or desperation schedules have no influence on current value.

Why are Equipment and Machinery Appraisals different from other Appraisals? First Equipment and Machinery have portability and in some cases unique industry applications, limiting comparison of activity and previous sales. There are several intended uses for Equipment and Machinery Appraisals that determine value. These include Liquidation?s (forced or orderly), bankruptcy asset valuation, partnership (mergers/buyout).

Common Appraisal Terms:

Orderly Liquidation Value (OLV): Orderly Liquidation Value allows for an extended time frame, which means that the time to sell the assets will increase from "shortest possible time" to an expanded time frame of six to twelve months or longer.

FYI: It is important to note that an OLV of assets may not bring a higher price. Some assets when put on the open market will not bring more, even with time because of many factors;

"Location and access of asset"

"Supply and Demand at the Time of Sale"

"Potential Pool of Buyers"

"Current Market Conditions"

Forced Liquidation Value (FLV): Forced Liquidation Value means that the assets will be sold in the shortest possible time (typically 30 to 45 days or less) depending on how strong the market is for a specific asset.

Fair Market Value (FMV): The amount for which real property or Personal Property would be sold in a voluntary transaction between a buyer and seller, neither of whom is under any obligation to buy or sell. Fair market value can also be referred to as fair cash value or fair value.

Level of Trade (LT): The reason for the equipment appraisal points directly at the premise of value, or levels of trade, that will be most appropriate for that appraisal. Machinery and equipment appraisals generally are from four major levels of trade with various subsections within each; these levels are Liquidation, Sale for Removal, Continued Use, and, of course, the catch-all category Other.

(Sample) Evaulation Report

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