EQUIPMENT APPRAISALS - IS THERE A WAY TO HELP ENSURE THEY COME BACK HIGH?
I'm working on a deal for a manufacturing company. A big component of my financing picture relies on the company's operating equipment being appraised at a high value ($2mm+). The company has numerous trucks and cars, plus other heavy, fixed manufacturing equipment. A lot of this equipment is 10+ years old but still in great condition.
My understanding is that commercial banks are required to select an appraiser for real estate and manage that process; however, for an equipment appraisal, buyers can get appraisals done independently and then share it with banks for underwriting.
Does anyone have any tips or tricks that are helpful for getting an equipment appraisal to come back high? I'm not looking for an unfair appraisal -- I just want to make sure the equipment is considered in its best light and assigned the highest, fair value.
I spoke with one appraisal company who said they could offer me three different types of appraisals: Fair Market Value; Orderly Liquidation Value; or Liquidation (Auction) Value. They said the Fair Market Value would be the highest value.
Will banks accept a "fair market value" appraisal for equipment? Is there anything else I can do to make sure I put the equipment in the best position to appraise high and be acceptable to the bank?
Thank you in advance for any thoughts and feedback!