IRC 409A Common Stock Valuation
This free, guided checker walks your team through the key decision points for IRC 409A Common Stock Valuation. Answer a few questions to see the likely approach and the evidence to document.
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Machinery, Equipment, and Real Property Appraisal
This free, guided checker walks your team through the key decision points for Machinery, Equipment, and Real Property Appraisal. Answer a few questions to see the likely approach and the evidence to document.
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Answer a few quick questions below. It is private - nothing is submitted or stored - and takes about a minute.
This tool is a high-level valuation screening aid for general information only and is not a valuation, appraisal, accounting, tax or legal opinion. A defensible conclusion of value requires a qualified valuation specialist applying professional standards to entity-specific evidence.
The questions this tool walks you through
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
Is the property to be appraised a tangible asset - machinery, equipment, or real property - rather than an intangible asset or a financial interest?
Tangible-property appraisal standards apply only to real property and personal property; intangibles and equity interests follow a different framework. Confirm the nature of the subject asset first, because software or licenses embedded in equipment can be mistaken for tangible personal property.
Value the intangible or business interest under IVS 210 (Intangible Assets) or the applicable business valuation standards, not the tangible-property approaches.
Official guidance: Uniform Standards of Professional Appraisal Practice
What type of tangible asset is the subject of the appraisal?
The asset type fixes the governing USPAP standard and the reporting requirements. Classify borderline items - trade fixtures, process piping, and equipment foundations - deliberately, because whether they are realty or personalty changes which standard, and which approach, governs them.
Develop the personal property appraisal under USPAP Standards 7 and 8. Develop the real property appraisal under USPAP Standard 1. Allocate the facility between real property (USPAP Standard 1) and personal property (USPAP Standards 7 and 8), appraise each component, and reconcile.
Official guidance: Uniform Standards of Professional Appraisal Practice
Under which premise is the machinery and equipment being valued?
The premise of value determines which costs belong in value and which approach is credible: value in use captures installation and assemblage, whereas value in exchange reflects a removed asset sold on its own. Select the premise from the intended use of the appraisal, not from whichever produces a preferred number.
Apply an in-use premise; develop the cost approach for special-purpose or installed assets. Apply an in-exchange premise; test the sales comparison approach against orderly market data. Apply a forced-sale premise; test liquidation and auction data.
Official guidance: Uniform Standards of Professional Appraisal Practice
Is the real property income-producing - leased to tenants or capable of generating market rent?
Income-producing real property is typically valued on the present worth of its net operating income, whereas owner-occupied or special-purpose property leans on sales comparison or cost. Confirm whether a market rent exists independent of the current occupant before assuming the income approach applies.
Use the interactive tool above to see how this applies to your situation.
Official guidance: Uniform Standards of Professional Appraisal Practice
Is there sufficient comparable-sales or auction market data for like assets to support a sales comparison indication?
The sales comparison approach depends on enough recent, arm's-length transactions in comparable assets to make credible adjustments for age, condition, capacity, and location. Where transactions are scarce or the asset is special-purpose, comparables cannot carry the conclusion and the cost approach governs.
Develop the sales comparison approach and reconcile the adjusted comparables to a value indication.
Official guidance: Uniform Standards of Professional Appraisal Practice
Can you develop a replacement or reproduction cost new and quantify physical deterioration, functional obsolescence, and external (economic) obsolescence?
The cost approach starts from replacement cost new (equivalent utility) or reproduction cost new (an exact replica) and deducts physical deterioration, functional obsolescence (excess capital or operating cost), and external obsolescence (market or economic causes). Omitting external obsolescence is the most common error because it originates outside the asset itself.
Develop the cost approach as replacement or reproduction cost new less physical, functional, and external obsolescence. Develop and reconcile the available indications; do not conclude value on an unsupported single approach.
Official guidance: Uniform Standards of Professional Appraisal Practice
Is the property's income attributable to the real estate itself - market rent a typical tenant would pay - rather than to the business enterprise operating there?
For real property the income approach must capture rent for the real estate, not the profit of the business occupying it; going-concern assets blend real property, personalty, and business enterprise value. Isolate market rent and the property-level cash flow so the indication does not overstate the real estate by including enterprise value.
Develop the income approach on market rent and a supported capitalization or discount rate. Separate the business enterprise and personal property from the real property, then reconcile the components.
Official guidance: Uniform Standards of Professional Appraisal Practice
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