Mergers and acquisitions are transactions in which ownership of a business or its assets is transferred or combined. These deals can range from full company sales to carve-outs, recapitalizations, or purchases of specific asset groups. Accurate valuation is central to pricing, negotiation, financing, accounting treatment, and regulatory compliance. Because multiple stakeholders rely on the numbers — buyers, sellers, lenders, auditors, and tax authorities — supportable and well-documented analyses are essential.
An M&A appraisal is an independent opinion of value prepared to support a transaction, financing, or post-deal reporting requirement. Depending on the assignment, the appraisal may address tangible assets, identifiable intangibles, inventory, equipment, vehicles, or ownership interests.
Valuations are often used in due diligence, purchase price allocation, fairness considerations, collateral analysis, or internal decision-making. Reports are typically prepared in accordance with recognized professional standards such as USPAP and are designed to be credible to counterparties, auditors, and regulators.
AppraiseItNow appraises many different asset types for M&A transactions, including:
- Machinery & Equipment: medical equipment, contruction equipment, trucks, trailers, laboratory equipment, CNC machinery
- Inventory: large quantities of manufactured or purchased inventory, typically stored in warehouses
- Vehicles: cars, boats & marine surveys, trucks, buses
- Business Valuations: Valuations of the underlying target company using financial statements and market data
Who We Service
For charitable contribution appraisals, we mainly service:
- Private Equity Firms
- Internal Finance Teams
- Business Owners
- Attorneys
- Accountants / CPAs
- Businesses preparing for sale
Why are machinery and equipment appraisals needed in a transaction?
Buyers, sellers, lenders, and auditors often require supportable values for physical assets that do not have transparent market prices.
Independent analyses of machinery and equipment are frequently used to inform negotiations, evaluate collateral coverage, support financing, and establish inputs for accounting allocations. A well-documented valuation creates a neutral reference point that multiple stakeholders can rely upon.
When is an inventory appraisal required during an acquisition?
Inventory may represent a significant portion of transaction value, particularly in manufacturing, distribution, or retail businesses.
Independent valuation can help parties assess salability, obsolescence, turnover characteristics, and appropriate pricing assumptions. Lenders and auditors commonly expect support for how inventory figures were derived, especially when large balances or specialized goods are involved.
Do I need a business valuation as part of a deal?
In many transactions, yes.
A business valuation may be necessary to support pricing decisions, fairness considerations, financing discussions, internal governance requirements, or tax and reporting positions. Even when the purchase price is negotiated, independent analysis is often important for documentation and third-party review.
Who hires the appraiser in a transaction?
Engagement may be initiated by the buyer, the seller, company management, investors, or a financing source.
When should equipment or machinery valuations begin?
It is typical to start the appraisal during the due diligence process.
Can lenders rely on machinery or inventory valuations?
Frequently, yes.
Financing sources often use independent analyses to evaluate collateral sufficiency, risk exposure, and borrowing base support. Any reliance expectations or report format requirements are typically addressed at the outset of the engagement.
How long do equipment, inventory, or business valuations take?
Equipment and inventory appraisals can take 1-2 weeks if done online and 3-4 weeks if done in person. Business valuations typically require 2-3 weeks.
AppraiseItNow offers rush appraisal services in case you are operating under a tight deal deadline.