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Appraisals are required to provide a valuation of an asset, whether it’s jewelry, construction equipment or one share of privately held stock.  

This can be performed for tangible or intangible assets. To make a valid appraisal, the authorized person must have a designation from a regulatory body governing the jurisdiction of the appraiser. We are proud of the respect we have earned for our specialized, in-depth, trusted appraisals and valuation reports.

Tangible Assets


Intangible Assets


Appraisals of Tangible Assets

Retail, Industrial and Commercial Real Estate

Our real estate expertise includes retail, industrial, and commercial properties. Our appraisers are particularly skilled appraising heavy industrial sites, such as chemical plants, steel mills, large manufacturing facilities, and mining operations to name a few. The industries served are also diverse, including pharmaceutical, chemical, specialty metals, steel, rubber, and plastics, as well as other industries with lighter manufacturing requirements. Light manufacturing, retail space, and office properties are also often appraised by our state licensed general appraisers.

There are many uses for a real estate appraisal, as well as a range of values to be reported to meet the purpose of the appraisal.

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Some Common Purposes For a Real Estate Appraisal Are:

  • Allocation of Purchase Price (ASC 805, IRC §1060, IRC §338)
  • Business/Property Dissolution
  • Buy – Sell agreements
  • Consulting
  • Corporate Planning
  • Cost Segregation Studies
  • Determination of Purchase or Sale Price
  • Estate Tax Filing
  • Fair Rental Analysis
  • Financing
  • Gifting
  • Insurance
  • Intellectual Property
  • Matrimonial Disputes
  • Property Tax Appeals

Our real estate appraisers are seasoned veterans, and are certified general appraisers as required by state Boards of Real Estate and the mandates promulgated by the Financial Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA). Most of our real estate appraisals are completed by Members of the Appraisal Institute (MAI).

All of our real estate appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), and, if necessary, FIRREA. USPAP provides guidance on the required elements of an appraisal report, reporting options, and other pertinent information to ensure the best professional appraisals.


Machinery and Equipment

The appraisal of machinery and equipment (M&E) has been a key component of the services offered since 1971 by EAC Valuations, the predecessor firm to Sobel Valuations.

Our M&E appraisers, with chemical engineering degrees and more than 80 years combined experience with large, multi-national chemical companies, are particularly skilled at appraising heavy industrial equipment, such as found in chemical plants, oil refineries, pharmaceutical manufacturing, power plants, steel mills, and other large, capital-intensive, manufacturing facilities. Our appraisers have also provided values to small manufacturing companies.

Our M&E appraisals have been used for bank loans, insurable replacement cost, and property tax purposes, or together with the other appraisal disciplines covered by our staff. Most commonly, the M&E appraisals are complemented by real estate or intangible asset appraisals, and also can be a component of a business valuation.


Insurable Replacement Cost

In the operation of a manufacturing business, it is critical to know the level of casualty insurance to have should a fire or other event occur that destroys the operation of the business. This should also include business interruption. A tangible asset appraisal, which includes buildings, contents and all Machinery & Equipment, and business valuation, can assist the business owner in purchasing the proper amount of insurance coverage to sleep well at night.


Property Tax Appeals

Nearly 2/3 of the US States impose personal property tax on equipment and in most cases inventory as of January 1 of each year. Nearly all states impose a real estate property tax as well. Government entities employ a “Mass Appraisal” technique that may be adequate for the entire population of their district, but may not apply individually, due to specific circumstances of your business. An independent appraisal of the real or personal property subject to the ad valorem tax can assist in a tax appeal or issuance of a rendition in negotiation with the local appraisal district. We can apply the specific financial metrics of your company, to the extent allowed by local law, to insure the property tax payable is right for your business.


Appraisals of Intangible Assets

Purchase Price Allocation (ASC 805)

 

Purchase Price Allocation brings together the valuation of both tangible and intangible assets acquired in a transaction.  The Financial Accounting Standards Board (FASB) provides guidance on the allocation of all assets and liabilities acquired in a transaction that changes the ownership of the assets. An accurate valuation is the foundation for GAAP or IFRS reporting, including the determination of the Fair Value of intangible assets and tangible assets, and associated leases and liabilities.  The process allows the identification of intangible assets, including intellectual property and customer related assets and assigns Fair Value to those assets, which can then be amortized over their useful life for GAAP reporting. 

As it is in the transfer of ownership of a company, the IRS (IRC 1060) requires a purchase price allocation statement (Form 8594) to be submitted by both the buyer and seller. This can be negotiated, within reason, and the statements must match. Frequently, an ASC 805 allocation is used to satisfy the requirements of Form 8594.


Intellectual Property Appraisals

The most common definition states that intellectual property (IP) is “A work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.” While so many assets are tangible, intellectual property is in the intangible category. It is distinguished by the fact that it doesn’t have a physical presence. While you cannot feel them, see them or touch them, intangible assets by their very nature are extremely important. From innovative business ideas to social media posts to musical compositions, intellectual property is the foundation of our society.

Performing an appraisal to gain awareness of the true worth of intellectual property is essential for companies and individuals. The process provides a defensible value of the IP - whether it is the Nike “swish”, the Susan G. Komen pink ribbon, the Coca Cola bottle, a Prada bag or other distinctive ideas, products and services to be sure that they are not used without permission. This is more critical than ever as today’s technology is enabling a high level of piracy as web content is so easily copied and replicated by fraud perpetrators or foreign competitors produce fake “knock-off” items that replicate the look of famous brands. In every instance, an intellectual property appraisal is an important tool for every business.


Goodwill/Asset Impairment: (ASC 350/360 Impairment Testing)

Under the current guidance in Accounting Standards Codification 350, adopted by the Financial Accounting Standards Board (FASB), goodwill is defined as “an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.” The purpose of impairment testing is to measure the Fair Value of an item on the balance sheet and compare to its Book Value or Carrying Value.  If the Fair Value is less than Book Value, the item may be impaired and require a full re-allocation of the assets of the business.  The test for goodwill impairment involves determining the Fair Value and then comparing the market value of the reporting unit to its carrying value.

Similarly, there are other long-lived (non-amortizable) intangible and tangible assets that may require impairment testing. Businesses must test for impairment if there is a change in its business model or profitability. The test for impairment also requires determining the cash flows attributable to the subject asset and comparing to its Book Value.


Our Professionals

Rebecca B. Fitzhugh forensic accountant litigation services

Rebecca B. Fitzhugh

Member of the Firm
Forensic Accounting

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Frank Merenda

Frank Merenda

Managing Director
Sobel Valuations, LLC

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Monica H. Kaden, MBA, ASA, ABV, CHFP

Monica H. Kaden

Director of Business Valuations
Sobel Valuations, LLC

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megan kelly manager forensic accounting litigation services essex county

Megan Kelly

Manager
Forensic Accounting

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envelope icon megan.kelly@SobelCoLLC.com

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