BV194 Minimizing the Wild Guesses of Fixed Asset Issues in Business Valuation
Certain problems and considerations may arise when valuing a business that has significant real estate and/or machinery & equipment. This presentation will focus on the major issues that often arise and provide insight on how to deal with them. The real estate-related concept of highest and best use is not only applicable to real property. In some cases, it must also be considered in a business valuation engagement. In many real estate and machinery & equipment-centric businesses it is important to have the real estate and/or the machinery & equipment appraised. When such an appraisal is required, there are a number of issues that must be addressed, such as applying the appropriate standard of value and ensuring that the real estate appraiser and the machinery and equipment appraiser are not appraising some of the same assets. The business appraiser needs to ask the correct questions of both the real estate appraiser and the machinery & equipment appraiser in order to understand the data needed to properly complete the business valuation.
Business appraisers that work with fixed assets, that need to understand when to bring in a real estate appraiser and/or machinery & equipment appraiser - and how to best work together to get the correct result.
Paul R. Hyde, ASA | President | Hyde Valuations, Inc.
Paul R. Hyde, ASA, President, Hyde Valuations, Inc. is an Accredited Senior Appraiser (ASA) in business valuation, real property, and machinery & equipment; a Certified General Appraiser in real estate; and a Designated Member of the Appraisal Institute (MAI) designation. Paul appraises all sizes of businesses from large private businesses for Employee Stock Ownership Plans (ESOPs) to small mom and pop businesses for divorces. Paul also appraises a wide variety of machinery and equipment, virtually all types of real estate, and livestock. Paul has taught classes in business valuation, investments, tax planning, and small business management for a variety of organizations. Paul works full-time in the business, machinery & equipment, and real estate appraisal fields.
Upon webinar completion, the participant will be able to:
- Determine when a real estate and/or machinery & equipment appraiser is needed;
- Describe what is actually needed from a real estate and/or machinery & equipment appraiser;
- Communicate to the reader of the final report the values of the fixed assets and explain how they relate to the final conclusion of value; and
- Apply what they have learned about how the different appraiser groups view critical factors in order to be able to deal correctly with fixed assets and the issues associated with them.