Sample Machinery Appraisal
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Sample Machinery Appraisal

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Here is a sample of the type of Appraisal that can be provided.

Here is a sample of the type of Appraisal that can be provided.

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    Sample Machinery Appraisal Sample Machinery Appraisal Document Transcript

    • Alternative Machine Tool, LLC 300 Venture Drive Dousman, WI APPRAISAL REPORT Prepared for XXXXXXX XXXXX XXXXX Prepared By: Scott E. Buth Date: May 30, 2008
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 INDEX COVER LETTER Page 3 CERTIFICATE OF VALUES Page 4 CERTIFICATION Page 5 DEFINITION OF VALUES Page 6 STATEMENT OF CONDITIONS Page 7 APPROACHES TO VALUE/DEPRECIATION Page 8 APPRAISER S QUALIFICATIONS Page 9 APPRAISAL REPORT DETAILED LISTINGS Page 10 - 15
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 May 30, 2008 XXXXXXXXX XXXXXX XXXXXX XXXXXX RE: Appraisal of Machinery and Equipment Dear XXXXXX, Pursuant to your request, I as an AMEA Accredited Appraiser of Alternative Machine Tool, LLC have prepared an Appraisal of XXXXXX, a copy of which is enclosed. This report is intended for use by only You , XXXXX and your Financial Advisors, and is intended for use in conjunction with the possible sale of your business. Use of this report by others is not intended by the appraiser, nor is the report intended for any other use unless express written consent is further granted. On 05/28/08, I personally viewed the Machinery and Equipment. Following my inspection, I supervised an investigation into the market conditions for this type of equipment in order to prepare an impartial report. I also consulted with Pat Klitzman, Madison Tool, Inc. and Jack Mendenhall, Used Machinery Sales, Inc. and they were not compensated for these services. The cost, income and market approaches to value have been considered for this appraisal and have been utilized where necessary or deemed inappropriate for the value conclusions found therein. The enclosed appraisal is a restricted use appraisal. The values for the subject equipment were determined by data collected in the course of research and analysis using but not limited to: Market data from Used Equipment Dealers, Conversations with New Equipment Manufacturer s, Consultation with Auctioneers, In-House Data Bases, Industry Data Bases and Trade Journals. After a thorough analysis of the machinery and equipment and review of the information made available to me, it is my opinion that as of May 30, 2008 the machinery and equipment has the Fair Market Value shown on the certificate that I prepared. As an agent of Alternative Machine Tool, LLC, I certify that neither I nor Alternative Machine Tool, LLC or any of its employees have any present or future interest in the appraised property. The fees charged for this appraisal were not contingent on the values reported nor were any undisclosed fees, commissions, or other compensation received. Respectfully submitted, Scott E. Buth Page 3
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 DOES CERTIFY That on this date given in this certificate, the property of XXXXXXX XXXXXXX XXXXXXXX $ 669,600.00 WAS WELL AND REASONABLY WORTH ON THE BASIS OF IT S FAIR MARKET VALUE ***************************** Distribution of Value Are As Follows: DESCRIPTION PAGES FAIR MARKET VALUE Vertical Machining Centers 10 $ 220,900.00 Horizontal Machining Centers 11 $ 123,000.00 CNC Turning Centers 12 $ 195,000.00 Manual Milling Machinery 13 $ 10,300.00 Manual Turning Machinery 13 $ 8,450.00 Manual Surface Grinders 13 $ 28,200.00 Rolling Stock 14 $ 11,650.00 Welding Equipment 14 $ 7,600.00 Shop Support Equipment 14-15 $ 19,400.00 Inspection Equipment 15 $ 45,100.00 TOTAL $ 669,600.00 Effective Date May 30,2008 By: Scott E. Buth Page 4
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 CERTIFICATION I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analysis, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, unbiased professional analysis, opinions and conclusions. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with the respect to the parties involved. My compensation is not contingent on an action or event resulting from the analysis, opinions or conclusions in, or the use of, this report. My analysis, opinions ad conclusions were developed, an this report has been prepared, in conformity with the Association of Machinery and Equipment Appraisers Standards and Procedures of Professional Ethics and Practice and the Uniform Standards of Professional Appraisal Practice. I have made a personal inspection of the property that is the subject of this report. No one provided significant professional assistance to the person signing this report. __________________________________ Scott E. Buth Page 5
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 DEFINITION OF VALUE USED FOR THIS APPRAISAL FAIR MARKET VALUE APPRAISAL A professional opinion of the most probable price expressed in terms of currency to be realized for property in an exchange between a willing buyer and a willing seller, with equity to both, neither being under any compulsion to buy or sell, and both parties fully aware of all the relevant facts as of the effective date of this appraisal report. LOCATION OF APPRAISED PROPERTY XXXXXXXX XXXXXXXX XXXXXXXX APPRAISAL CONSIDER ATIONS Our appraisal of the listed assets included a personal inspection and inventory of the subject assets and a review of certain fixed asset records. Discussions were held with the management of the company and a review was made of the industry to gain insight into company operations. This investigation has considered the assets in relation to such factors as: · The history and character of the business. · The character, extent, condition and utility of the assets considering installation costs necessary to reflect the value consideration of the property in place for the purpose of continued use. · The recognition of current economic conditions as of the appraisal date and the economic outlook for this business. · The influence of modern and changing technology and innovation applicable to this business. · The condition of the used equipment marketplace as it relates to similar property at the date of valuation. Page 6
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 STATEMENT OF CONDITIONS All facts and data set forth in this report are based upon an estimate of value only and are true and accurate to the best of the appraiser s knowledge and belief. No investigation has been made into the title to the property and all items listed are assumed to be the property of the subject company. No consideration has been given to liens or encumbrances which may be against the property other than those discussed in this report. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. The appraised property has been personally inspected unless otherwise stated. This appraisal has been made in accordance with accepted appraisal practices in accordance with the Association of Machinery and Equipment Appraisers Standards and Procedures of Professional Appraisal Ethics and Practice and Uniform Standards of Professional Appraisal Practice and reflects the best judgment of the appraiser. When appropriate, new and used equipment dealers have been consulted for comparable prices; and catalogs, trade publications and comparative results of auction sales have been utilized. Information provided by others has been assumed to be correct for the purposes of this report and no responsibility is taken for the accuracy of the same. Since conclusions by the appraiser are based upon judgment, isolation of any element as the sole basis of comparison to the whole appraisal may be inaccurate. The fees for this appraisal are not contingent upon values reported. Consideration for possible environment hazards from any source goes beyond the scope of this appraisal. It is assumed that there are no hidden or unapparent conditions of the equipment which would render it more or less valuable. Other limitations or assumptions, if any, are clearly defined and individually set out at the point relating to the subject. The appraiser is not required to give testimony, be present in any court of law, or appear before any commission or board by reason of this appraisal, unless prior arrangements have been made. Page 7
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 Approaches to Value Market Approach This approach is also known as the Comparison Sales Approach . The primary intent of the market approach is to determine the desirability of the asset and 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 are made to bring them as closely in line as possible with the subject property. 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 must be adjusted for all forms of depreciation as of the effective date of the appraisal. 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. This approach is the least common approach used in the valuation of machinery and equipment since it is difficult to isolate income attributable to a specific asset. Forms of Depreciation Physical Deterioration A form of depreciation where the loss in value or usefulness of an asset is attributable solely to physical causes, such as wear and tear and exposure to the elements. Functional Obsolescence A form of depreciation where the loss in value is due to factors inherent in the property itself and due to changes in design, or process resulting in inadequacy, over capacity, excess construction, lack of functional utility, or excess operating costs. Economic Obsolescence A form of depreciation or loss in value, caused by unfavorable external conditions. These can include such things as the economics of the industry, availability of financing, loss of materials and labor sources, passage of new legislation and changes in ordinances. Page 8
    • QUALIFICATIONS OF APPRAISER Scott E. Buth 300 Venture Drive Dousman, WI 53118 EXPERIENCE 1987 1991 Machine Tool Repair & Service Schweda Machinery/EDM Sales, Inc. 1991-1998 Machine Tool Sales Schweda Machinery/EDM Sales, Inc. 1998-2001 Sales Management-Machinery Buyer Schweda Machinery/EDM Sales, Inc. 2001- Present President Alternative Machine Tool, LLC EDUCATION 1980 1984 UW-Wisconsin Platteville B.S. Agriculture Engineering Technology B.S. Agriculture Economics Association of Machinery & Equipment Appraisers 1995 Certify your Assets - Seminar Machinery Dealers National Association 1998 Weekend with the Pros 2005 Weekend with the Pros 2007 Weekend with the Pros Page 9
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 DETAILED LISTING OF PROPERTY APPRAISED May 30, 2008 Appraisal of: XXXXXXXXX VERTICAL MACHINING CENTERS 1989 Mazak AJV-25/405 S/N: 79039 M32 Control, CAT 50 Spindle, 3150 Max RPM, 30 ATC, Tsudakoma 10 Indexer. $ 19,500.00 1993 Mazak V655B S/N: 108385 M32B Control, CAT 50 Spindle, 6000 RPM, 30ATC, 25 x59 Travels, Renishaw Probe System, Rigid Tapping $ 59,500.00 1992 Mazak AJV- 35/60 Dual Pallet S/N: 104951 M32 Control, CAT 50 Spindle, 30 Hp, 40 ATC, Rear Discharge Chip Conveyor, Renishaw Probe, Coolant thru Spindle, 29 x 68 Dual Pallets, 31.5 x 59 Travels. $ 74,900.00 1993 Tree VMC 1050/24 S/N: 9-20-93-1230 Yasnac MX-3 Control, CAT 40 Spindle, 24 ATC, Rigid Tapping, 24 x 40 x 20 Travels, Haas Indexer w/ 8 Chuck $ 17,500.00 1989 Mazak V-550 Dual Pallet S/N: 83791 M32 Control, CAT 50 Spindle, 60 ATC, Chip Conveyor, Dual 22 x 69 Tables $ 49,500.00 TOTAL OF VERTICAL MACHINING CENTERS $220,900.00 Page 10
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 DETAILED LISTING OF PROPERTY APPRAISED May 30, 2008 Appraisal of: XXXXXXXXX HORIZONTAL MACHINING CENTERS 1993 Mazak H-400N S/N: 108710 M32 Control, CAT 40 Spindle, 6000 RPM, 60 ATC, Continuous 4th Axis, Coolant thru Spindle, Chip Conveyor $ 30,000.00 1993 Mazak H-400N S/N: 107578 M32 Control, CAT 40 Spindle, 10,000 RPM, 30 ATC, Continuous 4th Axis, Coolant thru Spindle, Chip Conveyor $ 27,500.00 1991 Mazak H-400 S/N: 92799 M32 Control, CAT 40 Spindle, 6000 RPM, 1º Indexing, 60 ATC, Coolant thru Spindle $ 18,500.00 1990 Mazak H-500/40 S/N: 92754 M32 Control, CAT 40 Spindle, 5000 RPM, 60 ATC, Continuous 4th Axis, 20 Pallets, Coolant thru Spindle, Chip Conveyor $ 24,500.00 1989 Mazak H-500/40 S/N: 85897 M32 Control, CAT 40 Spindle, 5000 RPM, 60 ATC, Continuous 4th Axis, 20 Pallets, Coolant thru Spindle, Chip Conveyor $ 22,500.00 TOTAL OF HORIZONTAL MACHINING CENTERS $123,000.00 Page 11
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 DETAILED LISTING OF PROPERTY APPRAISED May 30, 2008 Appraisal of: XXXXXXXXX CNC TURNING CENTERS 1987 Mazak QT-20 Dual Turrets S/N: 80687 T-4 Control, Upper/Lower Turrets, 8 Stations, 8 Hyd. Chuck, Tailstock, Chip Conveyor, 4000 RPM, Bar Pusher, Tool Setter $ 21,000.00 1987 Mazak QT-15 S/N: 73913 T-2 Control, 8 Station Turret, 10 Hyd. Chuck, Tailstock $ 15,000.00 1995 Hyundai HiT-8S S/N: 5-005 Siemens 840 Control, 8 Station Turret, 8 Hyd. Chuck, 5000 RPM, Tailstock, Bar Pusher, Transformer $ 19,500.00 1986 YAM CK-5 S/N: F77025 Fanuc 10T Control, 8 Station Turret, 15 Hyd. Chuck, Chip Conveyor, Tailstock $ 29,500.00 1988 Hitachi-Seiki NK40S S/N: NKS40158 Yasnac Control, 10 Station Turret (Taper Tooling), 4.05 Bore, 15 Hyd. Chuck, Tool Setter, Tailstock, Chip Conveyor $ 35,000.00 1998 Hyundai HiT 30S S/N: 11X6-133 Siemens 840 Control, 8 Station Turret, 12 Hyd. Chuck, 36 Centers, Tailstock, Chip Conveyor $ 40,000.00 1995 Mazak QT-20 S/N: 116499 Mazatrol T-Plus Control, 8 Station Turret, 8 Hyd. Chuck, Tool Setter, Tailstock, Chip Conveyor $ 35,000.00 TOTAL OF CNC TURNING CENTERS $195,000.00 Page 12
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 DETAILED LISTING OF PROPERTY APPRAISED May 30, 2008 Appraisal of: XXXXXXXXX MANUAL MILLING MACHINERY Rambaudi FCR Vertical/ Horizontal Mill S/N: unknown 13 x 60 Table, 40 Taper Spindle, 5 Hp, 3 Axis Power Feeds Quill Type Head $ 4,500.00 XLO Vertical Mill S/N: 6021849 9 x42 Table, Acu-Rite 2 Axis Readout $ 1,500.00 Kondia Vertical Mill FV-1 S/N: 438 9 x 42 Table, Vari-Speed, R-8 Spindle, 3Hp $ 1,800.00 Cincinnati Horizontal Mill S/N: A1-111 12 x 53 Table, 50 Taper, 2 Axis Readout $ 1,000.00 Birmingham Vertical Mill S/N: unknown 10 x 50 Table, 3 Hp, R-8 Spindle, 2 Axis Readout $ 1,500.00 MANUAL TURNING MACHINERY Toolmex/Famot 14 x40 Engine Lathe S/N: 2639 6 3 Jaw, Sony 2 Axis Readout, Dorian Q.C. Toolpost D1-4 Spindle, 1.5 Bore, 28-2500 RPM $ 4,950.00 LeBlond Regal Engine Lathe S/N: 9C223 6 6 Jaw Chuck, 2 Axis Readout, Q.C. Toolpost $ 3,500.00 MANUAL SURFACE GRINDERS 1980 KBC SG618HD Hand Feed Grinder S/N: 03092 6 x 18 Permanent Mag. Chuck $ 800.00 Grand Rapids 380 Hyd. Grinder S/N: 380249 10 x30 Electric Chuck, Auto. Inc. Down feed, OTW Dresser $ 2,900.00 Mattison 42 Vert. Spindle Rotary Grinder S/N: 24-437 42 Table, 24 Segmented Wheel, ½ Remaining Chuck, Coolant w/ Mag. Separator, 85 Hp Total $ 24,500.00 Page 13
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 DETAILED LISTING OF PROPERTY APPRAISED May 30, 2008 Appraisal of: XXXXXXXX ROLLING STOCK Big Joe Electric Lift BDC-30-106 S/N: 67376 $ 1,950.00 2004 Crown Electric Lift Truck FC-4000 S/N: 9A126960 756 hrs, Side Shift, Fork Positioner, 3 Stage $ 7,500.00 Clark Electric Fork Lift TW30B S/N: TW2351443755FA 3000# Capacity, 3 Stage $ 2,200.00 WELDING EQUIPMENT Miller MIG Welder SPC-200G S/N: HK282804 10E Wire Feeder $ 1,200.00 Miller TIG Welder Syncrowave 250 S/N: KB052187 AC/DC, Water Cooled $ 2,000.00 Paragon Furnace BT22D S/N: 13038 2000 F°, 21 x21 x13 , DTC 800 Control $ 2,500.00 Thermal Arc Pak5XR Plasma Torch $ 1,500.00 Oxy/ Act Torch Set $ 400.00 SHOP SUPPORT EQUIPMENT Hannifin Arbor Press, Shop Built Hyd. S/N: 20020 $ 300.00 Sunnen Hone Model: MA S/N: 5920 $ 500.00 Ramco 55 Ton Shop Press S/N: 2086 $ 400.00 Leland Gifford 6 Spindle Drill Press S/N: unknown $ 200.00 Aqua Works Parts Washer System S/N: unknown $ 3,000.00 Gardner Denver Rotary Screw Air Comp. S/N: unknown 30 Hp, 24,000 Hours $ 4,500.00 Gardner Denver Air Dryer S/N: GD125A1150406066 $ 1,500.00 Sullair Rotary Screw Air Comp. S/N: unknown 25Hp, 3800 Hours $ 3,000.00 Page 14
    • ALTERNATIVE MACHINE TOOL, LLC 300 VENTURE DRIVE DOUSMAN, WI 53118 DETAILED LISTING OF PROPERTY APPRAISED May 30, 2008 Appraisal of: XXXXXXXXX SHOP SUPPORT EQUIPMENT- cont Do-All Automatic Horizontal Bandsaw S/N: 190-74593 Model: C80, 1 Blade, 24 Shuttle Feed $ 4,500.00 KBC Vertical Bandsaw 500D S/N: unknown 20 Throat, Blade Welder/Grinder $ 1,500.00 INSPECTION EQUIPMENT Brown & Sharpe 36 Elec. Height Gage S/N: 6P0053-11 $ 5,000.00 Phase II Hardness Tester 900-330 S/N: 0191 $ 600.00 Mitutoyo CNC CMM Mdl: KN815 S/N: unknown Renishaw PH9 Probe, 98 x 47 Table, Upgraded to QCT2000 Software in 2005 $ 39,500.00 TOTAL OF PAGES 13 -15 $130,700.00