MVS Machinery
Valuation Services LLC
ASSOCIATION
OF MACHINERY & EQUIPMENT APPRAISERS - CERTIFIED APPRAISERS ON STAFF
Jack Mendenhall, CEA, CSA • John F. Roedel, CEA • Brenda Daleki, AEA
19131 Industrial Blvd • Elk River, Minnesota
55330 • Tel:(763)441-5152 • Fax:(763)441-5075
December 14, 2011
Mr. Kurt ViseOn December 4, 2011, which is being used as the effective date of this appraisal, I personally viewed the subject machines. Following my inspection, I conducted an investigation into the market conditions for this type of equipment, in order to prepare this impartial report.
The cost, income, and market approaches to value have been considered for this appraisal and have either been utilized where necessary or deemed inappropriate for the conclusions found therein.
It is my opinion that the "Fair Market Value" of the subject machinery and equipment as of December 4, 2011 is $5. 00
The "Fair Market Value" as used in this report being as follows: " A professional opinion of the estimated most probable price expressed in terms of currency to be realized for property in an exchange between a willing buyer and a willing seller, with equity to both, neither being under any compulsion to buy or sell, and both parties fully aware of all relevant facts as of the effective date of this appraisal report.".(* DEFINITION OF VALUE SOURCE: ASSOCIATION OF MACHINERY & EQUIPMENT APPRAISERS).
Jack Mendenhall CEA, CSA
Machinery Valuation Services, LLC.
Machinery Valuation Services, LLC
19131 Industrial Boulevard
Elk River, Minnesota 55330
PH: (763) 441-5152
Does
- CERTIFY -
That on the date given in this certificate, the subject property of
XYZ USA, Incorporated
1615 Vince Lombardi Boulevard
Anytown, Wisconsin, USA 55000
Was well and reasonably worth:
$ 5. 00
On The Basis Of Its "Fair Market Value" Appraisal
Distribution of values are as follows:
(5) Assigned Assets of XYZ USA, Inc.
EFFECTIVE DATE: December 4, 2011
BY _________________________________________
Jack Mendenhall CEA, CSA
(AMEA & EAANA SEAL HERE)
CERTIFICATION
I CERTIFY THAT TO THE BEST OF MY KNOWLEDGE AND BELIEF:
The statements of fact contained in this report are true and correct.
The report analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and is my personal, unbiased professional analysis, opinions, and conclusions.
I have no present or prospective interest in the property that is the subject of this report. I have no personal interest or bias with respect to the parties involved.
My compensation is not contingent on an action or event resulting from the analysis, opinions, or conclusions in, or the use of, this report.
My analysis, opinions and conclusions were developed, and this report has been prepared, in accordance with AMEA Standards and Procedures of Professional Appraisal Ethics and Practice and the Uniform Standards of Professional Appraisal Practice (USPAP).
I have made a personal inspection of the property that is the subject of this report.
No one provided significant professional assistance to the person (s) signing this report.
Signed:
____________________________________
Jack Mendenhall CEA, CSA
STATEMENT OF CONDITIONS
All facts and data set forth in this report are based upon an estimate of value only and are true and accurate to the best of the appraiser’s knowledge and belief.
No investigation has been made into the title to the property and all items listed are assumed to be the property of the subject company.
No consideration has been given to liens or encumbrances, which may be against the property other than those discussed in this report.
I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved.
The appraised property has been personally inspected unless otherwise stated.
The appraisal has been made in accordance with accepted appraisal practices and in accordance with the Association of Machinery and Equipment Appraisers Standards and Procedures of Professional Appraisal Practice and the Uniform Standards of Professional Appraisal Practice and reflects the best judgment of the appraiser. When appropriate, new and used equipment dealers have been consulted for comparable prices, and catalogs, trade publications, and comparative results of auction sales have been utilized.
Information provided by others has been assumed to be correct for the purposes of this report and no responsibility is taken for the accuracy of same.
Since conclusions by the appraiser are based upon judgments, isolation of any single element as the sole basis of comparison to the whole appraisal may be inaccurate.
The fees for this appraisal are not contingent upon values reported.
Consideration for possible environmental hazards from any source goes beyond the scope of this appraisal.
It is assumed that there are no hidden or unapparent conditions of the equipment, which would render it more or less valuable.
Other limitations or assumptions, if any, are clearly defined and individually set out at that point relating to the subject.
The appraiser is not required to give testimony, be present in any court of law, or appear before any commission or board by reason of this appraisal, unless prior arrangements have been made.
PROFESIONAL QUALIFICATIONS
Jack Mendenhall CEA, CSA
Machinery Valuation Services, LLC
19131 Industrial Boulevard
Elk River, Minnesota 55330
PH: (763) 441-5152
Mr. Mendenhall has been active in the used machinery business since 1987. During this time he has been involved in the buying, selling, and appraising of used metalworking machine tools and related manufacturing equipment, specializing in CNC machinery.
Employment History:
Used Machinery Sales, LLC./Machinery Valuation Services, LLC.: 1995 - present
Hoff Machinery, Inc./Hoff Appraisal Associates, Inc: 1987-1994
Professional Background:
- Certified Equipment Appraiser (CEA): Association of Machinery & Equipment Appraisers (AMEA).
- September 2002 and November 2005: Completed Uniform Standards of Professional Appraisal Practice (USPAP) Course Work And Examination, As Required By The Appraisal Foundation, The Appraisal Standards Board, The Appraisal Qualifications Board, AMEA, and EAANA.
* References:* Contacts provided upon request
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 "Comparable 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 or 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 the subject property.
COST APPROACH
One of the 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 buyer would be the amount currently required to construct or purchase a new asset of equal utility. When the 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 assets.
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 deterioration 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
Machinery Valuation Services, LLC
19131 Industrial Boulevard
Elk River, Minnesota 55330
XYZ USA, Incorporated
Anytown, Wisconsin USA
December 4, 2011
CAPITAL EQUIPMENT APPRAISAL
APPRAISER: Jack Mendenhall CEA, CSA
Comments/Narrative/Scope of Work
The machinery and equipment which is the subject of this appraisal was viewed by the signature appraiser on December 4, 2011. The following comments should be viewed as an integral part of this report.
The Intended User of this report is XYZ, USA Inc. The Intended Use of this report is to provide information in establishing market value of the subject assets for purposes of exportation to an overseas facility within the XYZ USA, Inc. corporate structure. The value definition used in this report was chosen by Kurt Vise as being appropriate under the circumstances.
Included in this appraisal are five assets assigned to the appraiser by Mr. Vise.
Much of the information provided to the appraiser with regards to the capacities and ages of the items was provided by Leland Gifford and Kurt Vise of XYZ USA, Inc. The coolant systems being utilized on the roll grinders were deemed by Mr. Vise as being beyond the scope of this appraisal. As a result, the appraiser was instructed to disregard the coolant systems within the individual conclusions of value placed on the roll grinders.
The values placed on the individual items were determined by:
1.The experience of the appraiser.
2.Comparable data gathered in the form of price quotations on similar offerings from other used machinery dealers.
3.Discussions with other used machinery dealers and appraisers (being specialists in certain areas), new machinery dealers, auctioneers, and machine tool builders.
4.Consulting recent auction reports.
The subject items were in service when inspected, and appeared clean, well maintained, and in good operating condition. Discussions with used machinery dealers being specialists in the area of roll grinders indicated that the subject machines would be in high demand if exposed to the open market, and that the market remains strong for roll grinders of this type and capacity.
BORING MILLS, HORIZONTAL, TABLE TYPE
1-Used Cincinnati Gilbert Model J Table Type Horizontal Boring Mill, S/N XXX (New 1974), 5" Spindle Diameter, 120" x 60" T Slotted Main Table, 120" x 84" x 53" x 36" (Spindle) Travels, 10 – 1000 RPM Spindle Speeds, #50 Taper In Spindle, (2) Rotary Tables: (1) Manual Operated, (1) Airlift Type, Outrigger Table Supports, Pendant Controls, Newall Three –Axis Digital Readout
FAIR MARKET VALUE: $1
GRINDERS, ROLL
1-Used Waldrich Siegen Model WS3 CP 35X9500 CNC Roll Grinder, S/N XXX (New 1990), 35 Ton Maximum Work piece Weight, Five Axis Capability: Z, X, U, C, X1, 9500 mm Center Width, 950 mm Center Height, 320 – 1600 RPM Grinding Wheel Speeds, 915 mm Maximum Grinding Wheel Diameter, "S" Drives, (2) Steady Rests, Follow Rest, Superfinisher Attachment, Milling (Grooving) Attachment, 50 KW Grinding Wheel Motor Output, 36 KW Headstock Motor Output, Electrical Cabinets, Traveling Operator Control Console, Siemens CNC Control
FAIR MARKET VALUE: $1
1-Used Waldrich Siegen Model WSIII CP 25X8000 CNC Roll Grinder, S/N XXX (New 1990), 25 Ton Maximum Work piece Weight, Five Axis Capability: Z, X, U, C, X1, 8000 mm Center Width, 950 mm Center Height, 320 – 1600 RPM Grinding Wheel Speeds, 915 mm Maximum Grinding Wheel Diameter, "S" Drives, (2) Steady Rests, Follow Rest, Superfinisher Attachment, Milling (Grooving) Attachment, Tailstock Support, 50 KW Grinding Wheel Motor Output, 44 KW Headstock Motor Output, Electrical Cabinets, Traveling Operator Control Console, Siemens CNC Control
FAIR MARKET VALUE: $1
1-Used Herkules Siegen Model WSB 450 CNC Roll Grinder, S/N XXX (New 1989), 40 Ton Maximum Work piece Weight Between Centers, Three Axis Capability, 15,000 mm Center Width, 2000 mm Maximum Grinding Diameter, 2000 RPM Maximum Grinding Wheel Speed, 750 mm Maximum Grinding Wheel Diameter, (2) Sets – Steady Rests, Belt Grinding Attachment, Permanent Mount Superfinisher Attachment, Tailstock Support, 60 KW Grinding Wheel Motor Output, 72.5 KW Headstock Motor Output, Electrical Cabinets, Traveling Operator Control Console, PC Based Retrofit CNC Control
FAIR MARKET VALUE: $1
LATHES, FLAT BED, CNC
1-Used Safop Model Type Leonard 4G-CNC CNC Flat Bed Lathe, S/N XXX (New 1990), 1600 mm Maximum Workpiece Diameter Over Carriage, 13, 000 mm Maximum Workpiece Capacity Between Centers, Twelve Position Turret w/ Live Tooling Capability, Tailstock Support, Chip Conveyor, 60" 4 Jaw Chuck, (2) 48" 3 Jaw Chucks, Follow Rests, Steady Rests, Live & Static Tooling, Traveling Operator Control Console, "C" Axis, Fanuc 15T CNC Control, 100 HP Motor
FAIR MARKET VALUE: $1
TOTAL FAIR MARKET VALUE: $5.00
MVS Machinery
Valuation Services LLC.
19131 Industrial Blvd • Elk River, Minnesota 55330
• Tel:(763)441-5152 • Fax:(763)441-5075
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