USPAP-compliant appraisals supporting purchase price allocation and Form 8594 compliance. AppraiseItNow appraises equipment and machinery, business interests, and inventory to deliver accurate fair market value for mergers and acquisitions.
Valuations by experienced appraisers across assets
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Joe Kattan
Anne Hay, ISA AM
Jason Dolph, CAGA
Ashley Innes, ISA AM
Tim Roy, ASA, CEA
Justin Ramirez, ASA, ABV, CFA
Marnie Erkelens, CAGA
Raymond Ghelardi, ASA
Aron Blue
About AppraiseItNow's Mergers & Acquisitions Appraisal Services
Mergers and acquisitions appraisals establish the fair market value of business assets for purchase price allocation (PPA), a requirement under IRC Section 1060 whenever a group of assets constituting a trade or business changes hands. Both buyer and seller must file IRS Form 8594 with their federal tax returns for the transaction year, reporting identical allocations across seven asset classes. Discrepancies between filings are a known audit trigger, making accurate, well-documented appraisals essential to protecting all parties. Financial reporting under ASC 805 adds a parallel obligation, requiring fair value allocations for business combinations.
AppraiseItNow delivers M&A appraisals online and onsite throughout the United States, covering equipment and machinery, business interests, and inventory across a wide range of industries and transaction sizes. Our mission is to deliver defensible, USPAP-compliant valuations with exceptional speed, professionalism, and client service.
What Does AppraiseItNow Appraise for Mergers & Acquisitions?
AppraiseItNow covers every major asset class that commonly appears in mergers and acquisitions transactions, including:
- Equipment & Machinery – medical equipment, restaurant equipment, manufacturing machinery, and technology assets
- Business Interests – LLCs, S-corps, partnerships, fractional interests, and privately held stock
- Inventory – retail inventory, wholesale stock, raw materials, and finished goods
Who Does AppraiseItNow Serve?
- Business owners and founders selling a company or division through an asset purchase agreement
- Private equity firms and strategic acquirers requiring PPA support and ASC 805 compliance
- CPAs, tax attorneys, and M&A advisors coordinating Form 8594 filings for clients on either side of a deal
- CFOs and controllers at acquiring companies needing defensible fair value allocations for financial reporting
- Business brokers and transaction intermediaries facilitating deals involving tangible assets, inventory, or business interests
5-Star Valuation Services, Loved by Hundreds
AppraiseItNow offers online appraisals and onsite appraisals in all 50 states including New York, California, Texas, and Florida.
What is a mergers and acquisitions appraisal?
A mergers and acquisitions appraisal determines the fair market value or fair value of business assets for purchase price allocation, as required under IRC Section 1060 when a group of assets constituting a trade or business is sold. The buyer's tax basis is set by the purchase price, which must be allocated across IRS asset classes, and both buyer and seller must file identical IRS Form 8594 with their federal tax returns for the transaction year.
When is a mergers and acquisitions appraisal required?
IRC Section 1060 requires purchase price allocation for any asset sale involving a group of assets that constitutes a trade or business, with no minimum dollar threshold. Financial reporting under ASC 805 also requires fair value allocations for business combinations, including deferred taxes and transaction costs. Any qualifying transfer triggers these requirements, and discrepancies on Form 8594 can prompt IRS audit.
What types of assets need a mergers and acquisitions appraisal?
Assets commonly appraised in M&A transactions include:
- Equipment and machinery: medical equipment, restaurant equipment, manufacturing machinery, and technology assets
- Inventory: retail inventory, wholesale stock, raw materials, and finished goods
- Business interests: LLCs, S-corps, partnerships, fractional interests, and privately held stock
Who qualifies as an appraiser for mergers and acquisitions purposes?
Appraisers must meet USPAP standards and IRS qualified appraiser guidelines, which require detailed property descriptions, appropriate valuation methods, and non-contingent fees. No M&A-specific credentialing body exists beyond USPAP and IRS requirements, and ASC 805 governs fair value for financial reporting purposes. Appraisers must be prepared to defend their values using comparable sales and market data in the event of an audit.
Are AppraiseItNow's mergers and acquisitions appraisals USPAP-compliant?
Yes. All AppraiseItNow appraisals are prepared in accordance with USPAP standards and meet IRS qualified appraisal requirements for tax purposes, including the use of fair market value under Rev. Proc. 93-12.
What information do you need to get started?
To begin a mergers and acquisitions appraisal, please provide:
- Detailed asset descriptions and physical condition
- Financial statements relevant to the assets or business interests
- Purchase agreement details, including proposed asset lists and allocations across IRS classes
- Valuation data such as comparables or prior appraisals
- Appraiser credentials if a prior appraisal exists
How long does a mergers and acquisitions appraisal take?
Turnaround times vary by asset type:
- Equipment and machinery: 7 to 10 days for most remote appraisals; 2 to 3 weeks for onsite inspections or larger collections; rush same-day or next-day service is available
- Business valuation: 2 to 4 weeks for most engagements; rush service with a 7 to 10 day turnaround is available upon request
- Inventory: 2 to 4 weeks depending on size and complexity; rush service is available for tight deadlines
How much does a mergers and acquisitions appraisal cost?
Fees vary depending on asset type, scope, and complexity, visit our pricing page for a full breakdown. Engagements involving multiple asset types or large inventories may be quoted as a combined scope of work.
Can you appraise assets located anywhere in the US?
Yes. AppraiseItNow provides remote and onsite appraisals across all 50 states. Remote appraisals are available for most asset types, and onsite inspections can be arranged when required.
Will my appraisal be accepted by the IRS, insurers, or courts?
AppraiseItNow appraisals are prepared to meet qualified appraisal standards, including a stated valuation date, documented methodology, appraiser credentials, and a non-contingent fee declaration. While no firm can guarantee acceptance in every case, adhering to these standards significantly reduces the risk of challenge, penalty, or audit expansion.
Do you buy, sell, or broker assets?
No. AppraiseItNow provides independent appraisals only. We have no financial interest in any transaction, which is a core requirement for IRS-qualified appraisals and USPAP compliance.
What is the difference between fair market value and fair value in an M&A appraisal?
Fair market value for tax purposes under Rev. Proc. 93-12 excludes deferred taxes and transaction costs, prioritizing liquid assets before depreciables and goodwill. Fair value under ASC 805 for financial reporting includes deferred taxes and transaction costs and requires reconciliation with tax fair market value. Blending the two standards without reconciliation is a common and costly mistake.
What happens if the buyer and seller report different allocations on Form 8594?
Mismatched allocations between buyer and seller on Form 8594 trigger IRS audits that can expand beyond the deal to scrutinize the entire transaction. Both parties are required to file identical versions of the form with their federal tax returns for the transaction year. A well-documented appraisal with agreed-upon allocations is the most effective way to avoid this outcome.
Is there a minimum deal size that requires a purchase price allocation appraisal?
No. IRC Section 1060 applies to any sale of a group of assets constituting a trade or business, regardless of deal size. Any qualifying transfer triggers the purchase price allocation requirement.
When is Form 8594 due, and what should the purchase agreement include?
Form 8594 is due with the federal tax return for the transaction year, which is April 15 for calendar-year filers. Purchase agreements should include detailed asset descriptions, proposed IRS class allocations, valuation methods, appraiser credentials, and the basis for fair market value to ensure consistency between buyer and seller filings.
Can appraisers charge contingent fees for M&A purchase price allocation reports?
No. The IRS disqualifies appraisers who charge contingent fees because they undermine objectivity, which is a core requirement of the qualified appraiser guidelines. AppraiseItNow charges non-contingent fees on all engagements, keeping our appraisals fully compliant and defensible.
What are the most common mistakes to avoid on Form 8594?
- Mismatched buyer and seller allocations, which trigger audits
- Ignoring the ASC 805 business definition, which eliminates goodwill if the transfer does not qualify as a business
- Blending fair value and fair market value without reconciliation
- Using contingent appraiser fees, which the IRS disqualifies
- Overlooking Section 382 ownership change valuations when applicable
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