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PERFORMANCE MACHINE TOOLS
3305 Edison Way
Fremont, CA 94538

Phone: 510.249.1000
Fax: 510.249.9265
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Appraisals and Liquidations

xThere are many reasons to appraise your machine tool equipment. Whether you are looking to value one piece, or an entire company, let our 50 years of industry experience offer you the assistance you are looking for.

 Performance Machine Tools offers appraisals and liquidation services, with our certified appraiser, Bob Kroha, offering the following professional qualifications: Bob has been actively engaged in the buying and selling of metal working machinery and equipment since 1962, having worked for several large machine tool builders prior to establishing Performance Machine Tools in 1979. He graduated from Notre Dame University in 1961 with a degree in Mechanical Engineering. He is an active member of the Machinery Dealers National Association (MDNA). He served as Chairman of the Northern California Chapter of the MDNA 1993 TO 1995, and has served terms on the national board of directors. He is an Accredited Appraiser holding a certificate with the Association of Machinery and Equipment Appraisers.

 In the appraising of machinery and equipment, the following factors are taken into consideration: manufacturer, country of origin, model and capacity, condition, optional equipment, market demand, obsolescence, economic conditions, and age of equipment.

Available Valuation Methods

Market Value (Fair Market Value)

  • A professional opinion of the estimated 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 relevant facts as of the effective date of this appraisal report.

Market Value - In Place

  • A professional opinion of the estimated 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 relevant facts, as installed for intended utilization, as of the effective date of this appraisal report.

Forced Liquidation Value

  • A professional opinion of the estimated most probable price expressed in terms of currency which could be typically under forced sale conditions and under present day economic trends, as of the effective date of the appraisal report. Conclusions taken into consideration are physical location, difficulty of removal, physical condition, adaptability, specialization, marketability, overall appearance, and psychological appeal. Further, the ability of the asset group to draw sufficient prospective buyers to insure competitive offers is considered. All assets are to be sold on a piecemeal basis "as-is," with purchasers responsible for the removal of assets at their own risk and expense. Any deletions or additions to the total assets appraised could change the psychological and/or monetary appeal necessary to gain the price indicated.

Orderly Liquidation Value

  •  A professional opinion of the estimated most probable price expressed in terms of currency which the subject equipment could typically realize at a privately negotiated sale, properly advertised and professionally managed, by a seller obligated to sell over an extended period of time, usually within six to twelve months, as of the effective date of the appraisal report. Further, the ability of the asset group to draw sufficient prospective buyers to insure competitive offers is considered. All assets are to be sold on a piecemeal basis "as-is," with purchasers responsible for the removal of assets at their own risk and expense. Any deletions or additions to the total assets appraised could change the psychological and/or monetary appeal necessary to gain the price indicated.

New Replacement Cost Value

  • A professional opinion of the cost expressed in terms of currency, F.O.B. the manufacturer's plant, to purchase a new item of like quality and specifications. If such an item is unavailable, the appraiser has used his or her best judgment in estimating a value as of the effective date of the appraisal.

Desktop Opinion

  • A professional opinion of the appropriately defined value, expressed in terms of currency to be realized by the sale of assets, in which the opinion is generated from lists and/or other informational materials supplied to the appraiser, and evaluated without the benefit of an actual on-site inspection. This opinion is not recommended for use in credit decisions. A desktop opinion should be used to determine the need for an appraisal, or the scope of an appraisal.
Approaches to Value

Market Approach

  • One of the three recognized approaches used in appraisal analysis, this approach involves the collection of market data pertaining to the subject assets being appraised. This approach is also known as the "Comparison Sales Approach." The primary intent of the market approach is to determine the desirability of the assets, 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 must be made to bring them as closely in line as possible with the subject property.

Cost Approach

  • One of the three recognized approaches used in appraisal analysis. 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 of 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

  •  One of the three recognized approaches used in appraisal analysis. This approach considers value in relation to the present worth of future benefits derived from ownership, and is usually measured through 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 such assets.