Truman Mox provided a presentation to Howard Hanna Business Advisors on Machinery and Equipment Appraisals. www.trumanmox.com

1. Machinery & Equipment Appraisals 5/10/2023 1
Truman Mox, Inc.
Joseph Marino, CMEA, EECA
240 Park Place
Chagrin Falls, OH. 44022
888-494-3433
www.trumanmox.com

2. Who We Are
Truman Mox, Inc provides independent third-party
Equipment & Machinery.
We accreditations from the NEBB Institute and the
Equipment Institute of Valuation, in addition we are
members of the American Society of Appraisers and
the National Association of Certified Valuators and
Analysts
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3. More About Us
• Former Commercial Lender with
Park View Federal Savings and
Cortland Bank. (2000-2012)
• Former Chief Financial Officer for
Chef Art Pour Restaurant Group.
(2012-2023)
• Truman Mox Founded in 2011.
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4. What We Appraise
• Construction Equipment
• Medical & Dental Equipment
• Machinery
• Restaurant Equipment
• Agricultural Equipment
• And More
Machinery and Equipment Appraisers are
called on for price evaluation and
verification for equipment from many
different fields of business. We use basic
sound, accepted methodologies in all
assignments.
All reports are USPAP Compliant.
(Uniform Standards of Professional Appraisal Practice)
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5. Reasons For An Equipment Appraisal
• Bank Collateral
• SBA 7(A) Requirements
• Loan Workout Scenarios
• Insurance
• Landlord Repossession
• Lease Negotiation
• Purchase Price Allocation
(Acquisition Accounting)
• Private Equity Due Diligence
• Estate Settlement
• Divorce Matters
• Buy / Sell Situations
• Bankruptcy
• IRS Form 8283 Charitable Donation
• Liquidation Estimates
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6. Who We Work With
• Banks & Lenders
• Loan Workout Officers
• CPA’s
• Attorneys
• Landlords
• Business Buyers and Sellers
• Insurance Companies & Adjusters
• Business Brokers
• Private Equity Firms
• Business Owners
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7. Methods of Valuation
Market Approach
The market value estimate is
predicated upon prices being
paid in actual market
transactions and current
listings. Recent transactions
are analyzed to arrive at a
probable value.
Cost Approach
This approach is conducted
by determining the current
cost of an asset and
deducting for depreciation,
functional and economic
obsolescence, and physical
deterioration.
Income Approach
Considers future revenue
streams to derive a present
value. This approach is often
difficult to implement, given
that revenue streams cannot
easily be itemized for
individual items.
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8. Types of Values
• Fair Market Value
• Fair Market Value Installed
• Orderly Liquidation Value
• Forced Liquidation Value
• Replacement Cost New
• Insurable Value Depreciated
• Scrap Value
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9. Historical Experience
• Fair Market Value
• Fair Market Value Installed
• Orderly Liquidation Value
• Forced Liquidation Value
• Replacement Cost New
• Insurable Value Depreciated
• Scrap Value
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10. Current
Insights

11. Price Trend Example
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This trends is similar across numerous industries due to the supply shortage in 2021-22 and an increase
in inflation in 2022-23.

12. Emerging Trends in Heavy Equipment Buying &
Selling in Q1 of 2023
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One of the key trends that we have seen in the first quarter of 2023 is a growing
demand for used heavy equipment. This trend is driven by many factors, including the
high cost of new equipment, the increased availability of used equipment, and the
overall economic climate.
As the cost of new heavy equipment continues to rise, many buyers are turning to the
used equipment market as a more affordable option. Additionally, advancements in
technology have made it easier for buyers to locate and purchase used equipment
online, increasing the availability of used equipment in the market.
***THE USED MARKET IS HOTTER THAN EVER***

13. Restaurant Niche
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• Full Service
• Quick Service
• Franchise
• Independent
Franchises We Have Worked With

14. Restaurant Scenario 1
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Scenario 1 – Landlord is leasing a space with a fully equipped kitchen.
Important for Landlord to understand the value of the equipment, exhaust hoods,
walk-ins. This will allow them to absorb the value of the equipment into the lease
rate.
$20 Per SF x 4,000 SF = Annual Base Rent of $80,000 (5-year lease)
Value of Kitchen Equipment at lease signing is $100,000 and projected to be $60,000
at the end of 5 years. Landlord may be able to pass that depreciation of $40,000 to
their restaurant tenant through increased rental rates.

15. Restaurant Scenario 2
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Scenario 2 – Landlord has a tenant that has defaulted on their lease and is exiting the property
leaving behind a fully equipped kitchen.
Outside of any language in the lease. The tenant may seek monetary relief for leaving behind
equipment they paid to have installed.
Tenant exits lease with 2 years remaining, leaving a base rent balance of $100,000. They have
no use for the equipment, specifically the Walk Ins and Exhaust Hoods. But the removal of
the Walk Ins and Exhaust Hoods would be detrimental for the Landlord to attract a new
restaurant tenant.
The kitchen items appraise at $40,000 based on an Orderly Liquidation Value. In this instance
it may make sense for the Landlord to subtract $40,000 from the outstanding balance to
induce the exiting tenant to leave behind the kitchen equipment.

16. THANK YOU
Truman Mox, Inc
240 Park Place
Chagrin Falls, OH. 44022
888-494-3433
jmarino@trumanmox.com
Presentation Title 16