At the Rabin Company we are a family-held industrial auction and real
estate investment company that has a focus on the acquisition and sale of
industrial equipment and facilities around the world. This is our second installation of blogs dealing
with terminology used by the industry for determining valuation in an asset-based
lending or disposition process.
The American
Society of Appraisers defines the following terms based on standard
appraisal theory:
·
Fair
Market Value in Continued Use with Assumed Earnings - 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 relevant facts, as of a specific
date and assuming that the business earnings support the value reported,
without verification.
·
Fair
Market Value in Continued Use with Earnings Analysis - 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 relevant facts, as of a specific
date and supported by the earnings of the business.
·
Fair
Market Value (Installed) - 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 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.
·
Fair
Market Value (Removed) - 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 relevant facts, considering removal of the property to another
location, as of a specific date.
Our
professional asset appraisal services provide an essential starting point
for any asset-based lending or disposition process. At Rabin we base valuations on our actual
sales as well as sales values in the marketplace, and we consistently deliver
asset values to banks and corporations that they know they can rely on.
In
addition to being specialists in providing companies with expert asset
valuation and asset recovery services, we also run an in-house commercial real
estate investment and management company.
Our seasoned appraisers have completed hundreds of reports, providing our
clients with real-world obtainable value conclusions. Please contact us to learn more about our
comprehensive services.
Source:
Machinery & Technical Specialties Committee of the American Society
of Appraisers, July 25, 2010
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