Services

• EANA – EQUIPMENT APPRAISERS OF NORTH AMERICA
• USPAP COMPLIANCE & SPECIALIZATION
• APPRAISAL DEFINITIONS
• APPRAISAL METHODOLOGY
• INSPECTED VS DESKTOP APPRAISALS
• BUSINESS VALUATIONS

DESCRIPTION OF the EANA ORGANIZATION

• The express purpose of the association is to provide a professional appraisal society representing all aspects of the machinery and equipment industries. Actual market experience is a requirement for all appraiser members. The majority of our work utilizes the market approach, as we believe it to be the truest reflection of value in our discipline.
• The Equipment Appraisers of North America was incorporated May 18, 1990, in Pennsylvania with 15 Charter Members all involved in the construction and mining industry. In 1995 we extended membership to all disciplines of machinery and equipment and the Association is now international with over 120 members. In 1997 we adopted the Uniform Standards of Professional Appraisal Practice (USPAP) as the standard of practice for our members, adopted a Code of Ethics, we revised our membership requirements and established designations for members. EANA was accepted as a member of The Appraisal Foundation Advisory Council (TAFAC) in 1999.

Education, experience, and professionalism qualify membership in the EANA. CSA – “Certified Senior Appraiser” must meet the following qualifications:

1. Have a minimum of five (5) years current, ongoing, documented, market-oriented machinery and equipment appraisal experience.
2. Complete and pass the 15-hour USPAP Course.
3. Have sixty (60) hours of education related to appraisal valuation and methodology. The 15-hour USPAP Course may be a part of the sixty (60) hours.
4. Pass the EANA Comprehensive Exam. Any proctoring fee incurred is the responsibility of the applicant.
5. Submit four (4) printed copies of the report or email a pdf document of a USPAP and EANA compliant, current within the past year, client unidentifiable, Summary Appraisal Report for review. The applicant must be the individual most responsible for the preparation/content of the report submitted and the applicant’s signature must appear on both the certification as required by USPAP and the cover letter as required by EANA.
6. The Applicant must fulfill financial obligations and supply required confidential references.

USPAP COMPLIANCE & SPECIALIZATION

1. USPAP Compliance:
   • Quicquaro & Associates ensures that all their M&E (Machinery & Equipment) appraisals adhere to the Uniform Standards of Professional Appraisal Practices (USPAP) set forth by The Appraisal Foundation.
   • These standards ensure reliability, impartiality, and unbiased opinions in their valuation and cost reviews.
2. Specialization:
   • Quicquaro & Associates specializes in appraisals for various sectors, including:
     • Retail Stores: Covering all types and categories.
     • Hotels / Motels: Evaluating equipment in the hospitality industry.
     • Restaurants: Whether fast food, full-service, or specialty.
     • Supermarkets / Convenience Stores: Assessing equipment in retail food outlets.
     • Bakeries: Both distribution and manufacturing.
     • Candy Stores: Distribution and manufacturing.
     • Food Retail and Distribution: Including food service equipment.
     • Industrial and Institutional Foodservice: Serving schools, hospitals, and cafeterias.
     • Industrial Appraisals:
     • All industrial appraisals are prepared under the trade name “Quicquaro & Associates, LLC”.
     • We carefully check that appraisal certifications and conditions are meticulously followed.
3. Definition of Values: (see complete list)
   • Quicquaro & Associates provides the following valuation services well as other definitions listed under appraisal definitions herein:
     • Fair Market Value: Determining the value based on market conditions.
     • Fair Market Value Installed: Considering installation costs.
     • Liquidation Value: Assessing the value in a forced sale scenario.
     • Expert Witness Testimony: Offering expert insights in legal proceedings.

APPRAISAL DEFINITIONS

1. Reproduction cost new is the current cost of reproducing a new replica of a property with the same or closely similar materials, as of a specific date.
2. Replacement cost new is the current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date.
3. Fair Market Value is an opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts, as of a specific date.
4. Fair Market Value in Continued Use with Assumed Earnings is an opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts, as of a specific date and assuming that the business earnings support the value reported, without verification.
5. Fair Market Value in Continued Use with an Earnings Analysis is an opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts, as of a specific date and supported by the earnings of the business.
6. Fair Market Value - Installed is an opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts, considering market conditions for the asset being valued, independent of earnings generated by the business in which the property is or will be installed, as of a specific date.
7. Fair Market Value – Removed is an opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts, considering removal of property to another location, as of a specific date.
8. Liquidation Value in place is an opinion of the gross amount expressed in terms of money that typically could be realized from a properly advertised transaction, with the seller being compelled to sell, as of a specific date, for a failed, non-operating facility, assuming the entire facility is sold intact.
9. Orderly Liquidation Value is an opinion of the gross amount, expressed in terms of money, that typically could be realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is where-is basis, as of a specific date.
10. Forced Liquidation Value is an opinion of the gross amount, expressed in terms of money, that typically could be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is where-is basis, as of a specific date.
11. Salvage Value is an opinion of the amount, expressed in terms of money that may be expected for the whole property or a component of the whole property that is retired from service for possible use elsewhere, as of a specific date.
12. Scrap Value is an opinion of the amount, expressed in terms of money that could be realized for the property if it were sold for its material content, not for a productive use, as of a specific date.
13. Insurance Replacement Cost is the replacement cost new as defined in the insurance policy less the replacement cost new of the items specifically excluded in the policy, if any, as of a specific date.
14. Insurance Value Depreciated is the insurance replacement cost new less accrued depreciation considered for insurance purposes as defined in the insurance policy or other agreements, as of a specific date.

APPRAISAL METHODOLOGY

There are three recognized approaches to value: cost, market, and income:

COST APPROACH

This approach is based on the proposition that the informed purchaser would pay no more for the property than the cost of a substitute property with the same utility as the subject property. From this estimated cost the accrued appraisal depreciation is deducted to arrive at an indication of value. Appraisal depreciation consists of the physical (deterioration), functional and economic obsolescence. Physical obsolescence is the utility loss attributed mainly to wear and tear and exposure to the elements. Functional obsolescence is due to factors inherent in the property itself and could be because of design changes of processes resulting in inadequacy, overcapacity, excess construction, lack of utility, or excessive operating cost. Economic obsolescence is caused by unfavorable external conditions such as industry economics, availability of financing, loss of material or labor sources, legislation, or ordinances. The cost approach is required with special purpose assets where there is no market information.

MARKET APPROACH

This approach involves the collection of market data pertaining to the subject assets. Recent sales or offerings of similar properties are compared in order to arrive at an indication of the most probable selling price for the assets being appraised. If the comparables are not exactly similar, adjustments must be made to bring them as closely in line as possible. This is the primary approach used unless otherwise stated.

INCOME APPROACH

This approach considers value in relation to the present worth of the future benefits of ownership and is usually measured through the capitalization of a specific level of income. This approach is not usually used in the valuation of machinery and equipment since it is difficult to isolate income attributable to such assets.

Inspected Equipment Appraisals vs. Desktop Appraisals:

1. Inspected Equipment Appraisals:
   • Definition: These appraisals involve a physical inspection of the equipment or machinery.
   • Process:
     • An appraiser visits the site to visually inspect and verify the existence, condition, and details of the assets.
     • The appraiser collects data, takes photographs, and assesses maintenance records if available.
   • Pros:
     • Reliable and credible: The physical verification enhances reliability.
     • Third-party credibility: Suitable when third parties (e.g., lenders, investors) are intended users.
   • Cons:
     • Costlier: Requires time and travel for the on-site inspection.
     • Scheduling conflicts: May take longer due to scheduling challenges.
     • Spread-out equipment: Appropriate for assets at multiple locations.
2. Desktop Appraisals:
   • Definition: These are Non-Inspected Reports where the appraiser relies on information provided by the client or other sources.
   • Process:
     • The client provides details such as make, model, serial number, condition, and photos.
     • The appraiser uses this information to determine values.
   • Pros:
     • Cost-effective: Generally, less expensive than on-site appraisals.
     • Minimal facility interruption: No need for on-site visits.
     • USPAP compliant in most cases but may not be acceptable. Verify that this type of appraisal will be accepted by the users of the report.
   • Cons:
     • Limited verification: The appraiser doesn’t physically verify details.
     • Client-dependent: Relies on accurate information from the client.
     • Internal use: Best suited for internal purposes when the client is both the owner and user of the report.

Remember, the choice between these types depends on factors like cost, confidentiality, and intended users. Consulting with our appraiser can help determine the most suitable approach for your specific circumstances.

Download “ASSET LIST FORM” to specify assets for an inspected or desktop appraisal report; or provide your list and photos to be used in the report or to present details needed for the engagement proposal. Please request and complete our form “INFO NEEDED FOR APPRAISAL”.

BUSINESS VALUATIONS

A Business valuation is the process of determining the economic value of a business or business unit. It involves analyzing various aspects of the business to assess its worth.

Here are some key points:

1. Purpose: Business valuations are used for purposes such as sale value, taxation, divorce proceedings, and more.
2. Methods: Various methods exist for valuing a business, including market capitalization, earnings multipliers, and discounted cash flow models.
3. Professional Assistance: Owners often seek professional business evaluators to provide an objective estimate of their business’s value.

If you need a formal valuation, consider situations like buy-sell agreements, estate planning, mergers, or raising capital. Feel free to submit your business appraisal request, and a specialist will assist you with an engagement proposal.

In summary, Quicquaro & Associates, LLC combines expertise, adherence to standards, and specialized knowledge to provide accurate and reliable equipment and business appraisals for various industries.

Visit our sister website Restaurant Values