How to choose a machinery and equipment appraiser
Choose a machinery and equipment appraiser who is independent of the transaction, works under USPAP, holds a relevant M&E credential such as a NEBB-certified CMEA, inspects or reliably establishes the assets, and produces a documented report built to withstand the review it will face, whether from a lender, the SBA, the IRS or a court. Be wary of database-only "appraisals," anyone with a stake in the sale, and anyone who quotes a value before inspection. Match the appraiser's specialty to your equipment.
By Jared Lukes · CEO & lead appraiser · June 1, 2026
Independence
The first question is whether the appraiser has any stake in the outcome. A dealer, broker or auctioneer who might also buy or sell the assets cannot give you a number a third party will trust. An independent appraiser has no interest in the transaction, so the conclusion reads as objective when a lender, the SBA, an auditor or a court reviews it. If the person valuing the equipment also wants to transact in it, that is a conflict, not an appraisal.
USPAP and a relevant credential
Credible appraisals in the United States are prepared under USPAP, the Uniform Standards of Professional Appraisal Practice. For machinery and equipment specifically, look for a relevant credential such as a NEBB-certified Machinery & Equipment Appraiser (CMEA). A real estate or business-only background does not necessarily translate to valuing a CT scanner, a CNC cell or a paint booth. Ask what standard the report is prepared under and what the appraiser is credentialed in.
Inspection and documented method
A defensible appraisal is built from inspection, or from reliably established facts in a disclosed desktop scope, and it applies the three approaches to value (cost, sales comparison and income) with the reasoning written down. You should receive a narrative of scope and methodology, an itemized appendix valuing each asset, and supporting photographs, not a single lump-sum number from a database. If you cannot follow how the appraiser got to the figure, neither can a reviewer.
The right specialty for your assets
Equipment markets are specialized. Imaging trades differently from metalworking, which trades differently from food processing or fleet assets. An appraiser who knows your asset class and its secondary market will read condition, configuration and what conveys correctly, and will know where comparable evidence comes from. Match the appraiser to the equipment, not just to the word "appraisal."
Red flags to avoid
- A value quoted before any inspection or review of the assets.
- A "report" that is a database printout with no methodology or photographs.
- An appraiser who also wants to buy, sell or broker the equipment.
- No USPAP compliance and no M&E-specific credential.
- No clear statement of the premise of value or the effective date.
Lukes & Lukes is built around exactly these standards: independent, USPAP-compliant, performed by a NEBB-certified CMEA, with lender-fluent senior review on every report. Meet the firm and our principals.
Common questions
Answers, up front.
What credential should an equipment appraiser have?
For machinery and equipment, look for USPAP compliance plus a relevant M&E credential such as a NEBB-certified Machinery & Equipment Appraiser (CMEA). A real estate or business-only background does not necessarily cover specialized equipment. Ask what standard the report follows and what the appraiser is credentialed in.
Why not just use a dealer's or broker's number?
Because they are not independent. A dealer, broker or auctioneer who might transact in the assets has a stake in the value, which is exactly the conflict a lender, the SBA, the IRS or a court will discount. An independent appraisal is built to be trusted by people who were not part of the deal.
Should the appraiser inspect the equipment?
In most cases, yes, or reliably establish the assets within a disclosed desktop scope. Inspection confirms condition, configuration and what conveys, which is what removes assumptions and makes the conclusion hold up. Be cautious of any value quoted before the assets are reviewed.