All of our appraisers our CPPAG Members in Good Standing.
Please contact us to inquire about our appraisal services.
APPRAISALS
Asset appraisals have become one of the most effective tools used by
financial institutions, landlords, and business partners before making
important financial decisions. Appraisals are conducted in three
different formats, Forced Liquidation, Going Concern, Or Replacement
Cost.
FORCED LIQUIDATION
The most common form of appraisal used by financial lenders in order
to determine options. This form of appraisal is based on Gross
Selling Price in a distressed situation, and will incorporate selling
prices with detailed asset listings. Values are based on fair market
selling prices, on a per piece basis, using comparable assets sales
within the last 3 months as a price guideline.
GOING CONCERN
This form of appraisal is often used by a financial institution when
attempting to determine a fair market value for assets that may be
sold in place, to be used for the same or similar activities. It
takes into consideration certain variables, such as installation and
setup costs, but does not rely on financial information, i.e. sales, A/
R, etc. The values will be higher than those of forced liquidation,
but will still reflect age and usage of equipment.
REPLACEMENT COST
This is the newest and most important aspect of the Small Business
Loan Financing Program. In order to qualify for financing on an
existing establishment, an accredited, bank accepted appraiser must
conduct a thorough replacement cost appraisal. This appraisal,
similar to other formats, will include a detailed asset listing, but
will also take into consideration both setup costs, and leasehold
improvements. The purpose of this appraisal is to validate the amount
of money previously spent to create the establishment, thus fulfilling
a financing requirement of the Federal Government of
Canada.REPLACEMENT COST
