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Partnership Dissolution Equipment Appraisal

What's a Partnership Dissolution Equipment Appraisal?

Our answer to this:

In any partnership, one of the most challenging things is the Dissolution of the company.

Generally, a strong emotional reason is creating the need for the partnership to end. We find that very few partnerships had the appropriate plan in place for this event. In this setting, we find that we are often "between" the partners and tend to be mistrusted by the partner who did not specifically hire us.

  1. With this in mind, we have some simple things we suggest to make sure you are able to keep your costs low through the equipment appraisal.
  2. Consider hiring the equipment appraiser as an Arbitrator with regard to the equipment value.
  3. Have the Equipment Appraiser create a report that shows High Value - Medium Value, and Low Value, so you know your ranges.
  4. Hire the Equipment Appraiser from at least a few counties away from home. This eliminates any fear of Bias.
  5. Never Hire an Equipment Dealer or Local Auctioneer - They will almost always be Bias to one party.
  6. Consider a Desktop Appraisal - The Values are the same - the Cost is much lower.

In Partnership Agreements / Dissolution, an Equipment Appraisal is many times Required or Needed.

Here are some primary things you need to consider:

  • A Certified Equipment Appraisal is a Strong Negotiating Tool
  • Get all 3 Primary Values on the report (High, Mid, Low - See definitions below)
  • Certified = Preferred & Accepted by Lenders / SBA
  • Decide on a realistic line item value threshold - Ask us about this if unsure
  • Equipment Appraisals can help set Insurable Values
  • Equipment Appraisals are often needed for Corporation Tax Purposes
  • If there is potential Litigation - Make sure your Report is Certified
  • We have done Thousands of Appraisals
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