United States Businesses: Compare Machinery Appraisals

Define the engagement before requesting quotes

Commission a machinery appraisal by defining the inventory, intended use, value basis, effective date, inspection scope and permitted reliance before requesting quotes.[4][7]

Core engagement fields: Name the client and intended users, intended use, type and definition of value, effective date, subject assets and assignment conditions.[4]

For each asset, provide:

• Description, manufacturer, model, year, capacity, serial number, location and key features.[5]
• Hours, mileage, cycle counts or other usage indicators, plus available service and repair records.[5]
• Known defects or downtime and whether the asset is owned, leased or financed.[5]
• Available invoices, purchase orders, installation or upgrade costs, and photographs of the overall asset, controls, nameplate and critical components.[5]

Identify missing serial numbers, vague descriptions and outdated records. These gaps can delay the engagement and reduce the precision of the conclusion.[9]

State the purpose—such as collateral, a sale or acquisition, insurance, financial reporting, litigation, bankruptcy or estate planning—because the assignment terms depend on the intended use.[3][5] Define the value premise separately. Fair market value assumes an informed, willing buyer and seller without compulsion, while orderly liquidation value assumes a compelled seller and a reasonable sale period.[4] An in-place premise can include freight, installation and integration; a removed or in-exchange premise assumes a secondary-market sale and excludes installation costs.[9]

Do not substitute tax or GAAP book value for market value. Tax book value follows depreciation schedules, while GAAP book value reflects historical cost less accounting depreciation and impairment adjustments.[9]

The engagement should name permitted users and state critical assumptions, limiting conditions, assignment conditions and restrictions on third-party reliance.[4][6] An unnamed lender, buyer, insurer or attorney should not be assumed to have reliance rights.[4][6]

Keep the assignment limited to machinery, equipment and other tangible business assets. Federal interagency appraisal FAQs concern real-estate-related transactions, not requirements for standalone machinery appraisals.[2]

State the orderly-liquidation period

“Orderly liquidation value” is not a complete premise. Reliant defines OLV as estimated gross proceeds after a reasonable sale period when the seller is compelled to sell the assets “as is, where is” as of a specified date.[4]

Published examples use different marketing periods. BGH gives 90–180 days as an orderly-liquidation example.[9] MBO Ventures, in its May 18, 2026 guide, gives 6–12 months.[8] These are provider explanations, not universal assignment rules. Require the engagement and final report to state the actual marketing period and intended sale conditions.

The documents should also say whether the equipment is valued in place or for removal. This identifies the sale scenario behind the conclusion, not merely the OLV label.[9]

Compare Reliant, GCF and National

Compare each provider on physical verification, reported valuation detail and the assignments for which it markets each format.

Reliant Business Valuation

• Physical verification: The Summary M&E report includes a site visit. The Desktop report uses descriptions and available photographs without on-site verification.[4]
• Reported valuation detail: The Summary report provides individual asset values and one aggregate value. Confirm the Desktop report’s line-item detail.[4]
• Suited to (provider description): Reliant markets the Summary report for SBA and conventional lending. It positions Desktop work for standard, readily identifiable, previously verified or geographically dispersed equipment.[4]

GCF Business Valuation

• Physical verification: The On-Site format verifies identification, serial numbers and condition and includes photographs. The Desktop format relies on documents without a site inspection.[5]
• Reported valuation detail: Confirm whether the report will show values by individual asset, equipment group, aggregate total or a combination.[5]
• Suited to (provider description): GCF presents On-Site work for bank or SBA assignments and large or complex assets. Its stated Desktop uses include internal planning, lower-risk collateral review, standardized machines across multiple locations and preliminary negotiations.[5]

National Equipment Appraisal

• Physical verification: The Complete Appraisal includes site inspection and collateral verification. Walk Through focuses on higher-value assets and a representative portion of the inventory; Desktop relies on the asset listing without inspection.[6]
• Reported valuation detail: The Complete format includes a detailed inventory, individual and aggregate values, narrative, assumptions, value definitions, valuation approaches, representative photographs and a bibliography. Confirm the detail included in Walk Through and Desktop reports.[6]
• Suited to (provider description): National positions Complete reports for financing, legal and accounting reliance; Walk Through for a limited review based partly on a client-supplied list; and Desktop where travel, cost or timing makes inspection undesirable. National says Desktop assurance may be lower than for a Complete Appraisal.[6]

The cited pages do not specify Reliant Desktop line-item detail, GCF’s value presentation or equivalent detail for National’s Walk Through and Desktop formats.[4][5][6]

Match the inspection level to the intended use

Use an on-site inspection when an intended user needs independent confirmation of existence, location, make, model, serial number, age, condition, maintenance or use according to the asset’s original design.[4][5]

A walk-through is more limited. National describes its Walk Through as a cursory review emphasizing assets that represent most aggregate value, detailed inspection of a representative portion and grouping smaller assets into lots valued with industry depreciation rates.[6]

A desktop appraisal relies on client-supplied inventories, descriptions, photographs, maintenance records and related documents. Without physical inspection, the appraiser cannot independently verify existence or condition.[4][5][6] Reliant says Desktop work may be considered for standard, readily identifiable equipment; when knowledgeable personnel are available; when existence has already been verified; or when dispersed locations make inspection cost-prohibitive.[4]

Before authorizing the work, send the proposed inspection level, value premise, effective date and reliance terms to each intended user and obtain written acceptance. A provider’s description does not establish that a format will be accepted for a particular assignment.[4][5][6]

What to confirm with each provider

The cited Reliant, GCF and National pages do not state appraisal-report prices, exact reliance language, cancellation and related contract terms, or complete service territories. National states only that its Industrial Audit uses a set daily fee, without giving a total fee.[4][5][6]

• Quote: Confirm asset count and locations, inspection format, deliverables, value premises, effective date, OLV marketing period where applicable, travel charges, document deadline, delivery date, total fee and approval of scope changes.
• Reliance: Name the client and intended users and address sharing, assignment, prohibited third-party uses and liability limits.
• Contract: Confirm cancellation, refunds, revisions, report updates, confidentiality and dispute resolution.
• Coverage: Confirm service for each asset location and how travel is charged.
• Report detail: Request a sample or written description showing inventory fields, photographs, valuation detail, assumptions, limiting conditions and certifications.

GCF reports a typical turnaround of about 10–12 business days after inspection and receipt of complete documents. This is a vendor estimate, so the assignment deadline should be confirmed in writing.[5]

Before signing: Check that the inventory, intended use, value definition, effective date, inspection level, liquidation period, named users, reliance restrictions, deliverables, total fee and change terms match across the quote and engagement letter.

References

2. Frequently Asked Questions on the Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines (federalreserve.gov)
3. appraisers.org (appraisers.org, 2020)
4. Equipment Appraisals – Reliant Business Valuation (reliantvalue.com)
5. The Business Owner’s Guide to Machinery & Equipment Appraisal (gvalue.com)
6. Types of Appraisal – Equipment Appraisal Services | Machinery Appraisal | Certified | OLV Equipment Appraisals | Heavy Equipment Appraisal Company (nationalequipmentappraisal.com)
7. Equipment Appraisal Guide | Appraisal Dream (appraisaldream.com, 2026)
8. Machinery and Equipment Appraisal: A Complete Owner's Guide (mboventures.com)
9. Machinery and Equipment Valuations (bghvaluation.com)