By Carl Grimes
Why in the world would I need a Certified Equipment Appraisal (CEA)?
Understandable question and one we often run into when preparing a business for sale. The most difficult question for most owners to answer is, “What is the Fair Market Value of your equipment? “
In many cases the equipment has been in place for a long period of time and the owner has no idea what the real, market value is.
Here are some other reasons you may need to contact CBI Business Resources about obtaining a CEA:
Establishing Collateral Value For New Or Renewing Loans
- Your banker may require it for new or renewing loans in order to establish the collateral value of your company
SBA Loan Review
- You may need to obtain an SBA guaranteed loan. The SBA will not accept your estimate of FMV (Fair Market Value) of your FF&E (Furniture, Fixtures and Equipment). The depreciated value of your equipment, book value, from the company balance sheet is what they will use unless you have a CEA. Most often the equipment has been fully depreciated and the value is zero according to that metric.
Family Estate Planning
- You need to do estate planning for your family. A CEA will establish the value of your assets for the allocations required in estate planning.
Pending Sale of Company To Establish Real Value of Assets
- You plan to sell your company and need to establish a real value of your assets. A “guess” isn’t good enough when calculating the asset value of the company you want to sell.
There are other “real life” reasons you may need a Certified Equipment Appraisal and that’s why CBI Business Resources is your one stop shop for all things business related.
To get more information about obtaining a CEA contact CBI @ [email protected] or calling 877-582-5200.