EAC was awarded a Business Valuation & Equipment appraisal contract by a local SBA lending bank for the purpose of SBA financing. We calculated a fair market value of the business and equipment proposed to be sold after discussions with the bank and a tour of the facility. The appraisal was performed under USPAP’s (Uniform Standards of Professional Appraisal Practice) new 2014-2015 standards.
‣ Industry: Automotive
‣ Standard of Value: Fair Market Value
2014-2015 USPAP Reporting Standards
An appraisal report must be prepared under one of the following two options: (1) Appraisal Report and (2) Restricted Report. The Appraisal Report must summarize the appraiser’s analysis and the rationale for the value conclusions. The Restricted Appraisal Report contains only the bare facts and conclusions, and most of the supporting data will be in the appraiser’s work file. The Restricted Appraisal Report has a required use restriction that limits reliance on the report to the client and is not intended for the use of third parties. An appraisal may be communicated using either of the two reporting options.