Manage Resource Group has seen a spike in activity for 2018 from clients they have worked with to provide tangible asset inventory and appraisal services. As the merger and acquisition activity continues to heat up, we thought it might be a good opportunity to review a few valuable points if your facility plans to engage in M&A as part of their strategic initiative.
Inventory & Appraisal Services for FFE/Tangible Assets
When selecting a firm to conduct I&A work, make sure of the following:
- They are using USPAP Uniform Standards of Professional Appraisal Practice for FMV
- They provide a third party unbiased/objective view of the assets
- Request examples of deliverables showing reports and methodology to the valuation engagement
- Request that firms outline their process for engagement and expectations for timelines to conduct site visits and sending deliverables
- Request references outlining comparable projects
Understand the appraisal methodology that will be applied to the assets. Fair market value is the estimated value of an asset between a willing seller and a willing buyer.
- Fair market installed/in-use value is typically used for continued use of the asset in its current state
- Fair market liquidation value is typically used if the assets needs to be liquidated to the open market
Consider what demographics will be captured on assets during the inventory.
- Facility, Room, General Description, Manufacture, Model, Serial Number etc. should typically be included
- Obtain a condition assessment of the asset to understand its viability after the purchase
There are many scenarios to providing asset valuations but applying some of the general guidelines outlined above will help you determine the best direction for your organization. If you are interested in learning more about tangible asset valuations, please contact one of MRG’s sale professionals at 888/557-4797 or firstname.lastname@example.org and we would be happy to discuss needs or questions you might have.