Whats 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.
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.
Consider hiring the equipment appraiser as an Arbitrator in regards to the equipment value.
Have the Equipment Appraiser create a report that shows High Value - Medium Value, and Low Value so you know your ranges.
Hire the Equipment Appraiser from at least a few counties away from home. This eliminates any fear of Bias.
Never Hire an Equipment Dealer or Local Auctioneer - They will almost always be Bias to one party.
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