INDUSTRIAL AUCTIONS AND APPRAISALS SINCE 1954

R.M.C. INDUSTRIAL SERVICES

Auctions and liquidations are a great way to quickly sell a large amount of equipment at a fair price, and an accurate appraisal is necessary to determine what your equipment is worth.  R.M.C. Industrial Services is expertly staffed and certified to help you with either of these operations.

Our liquidation and auction department can sell your machinery, your plant or even real estate.  By commission, guarantee or outright purchase of your companies assets. R.M.C. Industrial Services exhaustive database of over 70,000 of buyers will match the right buyer for your equipment, and maximize your chances of a high selling price.

R.M.C. Industrial Services appraisers bring a unique perspective to our appraisal practice with over 50 years experience of high technology experience in the valuation and appraisal of corporate assets.  Whether your situation requires the physical inspection of one piece of equipment or an entire facility involving thousands of items, R.M.C. Industrial Services can help. We would be pleased to discuss any aspect of your appraisal or valuation needs. Our appraisal program which results in an accurate auction market evaluation, orderly liquidation, fair market or in-place value, is performed in compliance with the Uniform Standards of Professional Appraisal Practice

APPROACHES TO VALUE

Market Approach:

                One of the three recognized approaches used in appraisal analysis, this approach involves the collection of market data pertaining to the subject assets being appraised. This approach is also known as the ‘Comparison Sales Approach’. The primary intent of the market approach is to determine the desirability of the assets and recent sales or offerings of similar assets currently on the market in order to arrive at an indication of the most probable selling price for the assets being appraised. If the comparable sales are not exactly similar to the asset being appraised, adjustments must be made to bring them as closely in line as possible with subject property.

Cost Approach:

                One of the three recognized approaches used in appraisal analysis, this approach is based on the proposition that the informed purchaser would pay no more for a property than the cost of producing a substitute property with the same utility as the subject property. It considers that the maximum value of a property to a knowledgeable buy would be the amount currently required to construct or purchase a new asset of equal utility. When subject asset is not new, the current cost must be adjusted for all forms of depreciation as of the effective date of the appraisal.

Income Approach:

                One of the three recognized approaches used in appraisal analysis, this approach considers value in relation to the present worth of future benefits derived from ownership and is usually measured through the capitalization of a specific level of income. This approach is the least common approach used in the valuation of machinery and equipment since it is difficult to isolate income attributable to such asset.

DEPRECIATION

Defined as the actual loss in value or worth of a property from all causes including those resulting from physical deterioration, functional obsolescence, and economic obsolescence.

Physical Deterioration:

                A form of depreciation where the loss in value or usefulness of an asset is attributable solely to physical causes such as wear and tear and exposure to the elements.

Functional Obsolescence:

                A form of depreciation where the loss in value is due to factors inherent in the property itself and due to changes in design, or process resulting in inadequacy, over capacity, excess construction, lack of functional utility, or excess operating costs.

Economic Obsolescence:

                A form of depreciation or loss in value, caused by unfavorable external conditions. These can include such things as the economics of the industry, availability of financing, loss of material and labor sources, passage of new legislation, and changes in ordinances.

DEFINITION

AUCTION  VALUE

“The estimated gross dollar amount which should be realized at a properly prepared, advertised and conducted public auction sale, held under forced sale conditions and under present-day economic conditions. This takes into consideration inflationary or depreciable factors which affect sales such as physical location, difficulty of removal, age, new cost, availability, versatility or specialization, marketability, physical condition, overall appearance and psychological buyer appeal.”

DEFINITION

IN-PLACE VALUE

“An opinion, of the estimated dollar value, which the subject machinery and equipment would be worth “In-Place” assuming that said equipment were purchased in the open market under present day economics, and installed for intended utilization.”

The In-Place Value appraisal of machinery and equipment includes the estimated costs of transportation, foundations, piping, or power wiring applicable to each machine or the total values of all machines expressed in the appraisal.

Inherent in this definition is the understanding that all equipment or assets listed in the itemized report are NOT being sold  “as is and where is” for removal from the premises.

Definition

FAIR MARKET VALUE:

    “An opinion, of the expected gross dollar amount, which the subject machinery and equipment could realize if exposed for sale in the open market by a seller who is willing but not obligated to sell, and a buyer not obligated to buy, neither being under duress or compulsion to do so and both buyer and seller having knowledge of the value, and purposes to which it is adapted and for which it is capable of being used.”

                Inherent in this definition is the understanding that all equipment or assets listed in the itemized report would be sold on a piecemeal basis “as is and where is” for cash, with the buyer being responsible for removal at their own risk and expense.

DEFINITION

ORDERLY LIQUIDATION VALUE;

“An opinion of the expected gross dollar amount which should be realized at a properly prepared, advertised and conducted orderly liquidation if exposed for public sale in the open market with a reasonable time allowed to find a purchaser.

    Both a buyer and seller would have knowledge of the uses and purposes to which it is adapted and for which it is capable of being used, the seller being compelled to sell and the buyer being willing, but not compelled to buy.”

Inherent in this definition is the understanding that all equipment or assets listed in the itemized report would be sold within a short period of time on a piecemeal basis “as is and where is” for cash, with the buyer being responsible for removal at their own risk and expense.

DEFINITION

DESK TOP OPINION

“An opinion of value based upon the materials and information supplied, and is evaluated without the benefit of physical inspection.” This opinion is not to be considered an appraisal but is based upon the information supplied.