Equipment appraisals for mergers and acquisitions.
An M&A equipment appraisal from Lukes & Lukes is an independent, USPAP-compliant opinion of Fair Market Value for the machinery and equipment changing hands in a deal. Built for buyers, sellers and their accountants to rely on, and prepared to withstand lender, SBA, IRS, audit and legal review.
Which value applies
Fair Market Value is the deal premise.
The premise of value in an acquisition is Fair Market Value (FMV): the price a willing buyer and a willing seller agree on, neither under pressure, both informed. A certified appraiser determines FMV for the equipment going across in the transaction, then supports the purchase price allocation (PPA) that ties the deal price to the assets on the closing balance sheet.
FMV is also conclusion-aware. When the equipment will keep running in the same plant under the same operations, value reflects an installed, going-concern context. When assets will be sold separately or relocated, value reflects an in-exchange context. We state the premise and the assumptions, so the number means one thing and holds that meaning under review. Each premise carries a precise definition, and the canonical glossary lives on the process page.
- Fair Market Value (FMV): the transaction premise for the equipment in a purchase or sale
- Purchase price allocation (PPA): FMV by asset so the deal price ties to the closing balance sheet and financial reporting
- Going-concern context: value for assets that keep running in place, installed and operating
- In-exchange context: value for assets sold separately or relocated after the deal
- Replacement Cost New (RCN): the cost-approach baseline behind the conclusion, depreciated to current condition
- One reconciled opinion: cost, market and income approaches weighed to a single defensible value
Where this connects
A deal touches more than one number.
An acquisition rarely closes on FMV alone. The lender financing the purchase needs a collateral value. The estate or tax matter behind a sale needs the same FMV discipline. And the assets themselves sit in one of three specialties. Start with the situation, and we map it to the right premise and the right file.
Who orders it
The people closing the transaction.
Buyers and sellers order an M&A equipment appraisal to price the assets in a deal. Private-equity and search-fund acquirers order one for buy-side diligence, to confirm what the machinery is actually worth before they commit. CFOs and corporate development teams order one for sell-side preparation and for the purchase price allocation. The accountants handling allocation and financial reporting order one to support the equipment line on the closing balance sheet. Every one of them needs a number that holds up under review.
What you get
One file your accountant can rely on.
You receive a complete report, not a printout: a written narrative of scope and methodology, an itemized appendix valuing each asset, and photographs from inspection. Independent and certified, with senior review before it leaves.
- Cost, market and income approaches applied by a certified appraiser, not a database
- Itemized appendix, narrative and photographs in every file
- FMV by asset, structured to support purchase price allocation and financial reporting
- Independent senior review on every report
- Lender-fluent for deal financing: Jesse Lukes came up inside the bank at BMO, originating loans and reviewing collateral, so the file reads the way a lender reads it
Common questions
Answers, up front.
How are machines valued in an acquisition?
On a Fair Market Value (FMV) basis: the price a willing buyer and a willing seller would agree on, neither under pressure. A certified appraiser then frames that value to the deal. When the equipment keeps running in place, value reflects a going-concern, installed context. When assets will be sold separately or relocated, value reflects an in-exchange context. The premise and assumptions are stated in the report so the conclusion means one thing.
What is purchase price allocation, and why does the equipment line need an appraisal?
Purchase price allocation (PPA) assigns the total deal price across the assets acquired, and the machinery and equipment line is one of them. An independent FMV appraisal supports that line item with documented methodology and an itemized appendix, so the allocation and the financial reporting behind it can be relied on by your accountant and stand up to audit and IRS review.
Do you handle both buy-side and sell-side appraisals?
Yes. On the buy side, the appraisal confirms what the equipment is worth before the buyer commits, which informs price, financing and diligence. On the sell side, it supports the asking price and gives the buyer a documented basis to trust. The standard is the same in both directions: an independent, USPAP-compliant opinion of value, not an advocacy number for one party.
Will your accountant or auditor accept the appraisal for allocation and reporting?
Yes. Reports are USPAP-compliant, prepared by a NEBB-certified Machinery & Equipment Appraiser (CMEA), and structured with FMV by asset, a written narrative and an itemized appendix so the allocation maps directly into financial reporting. They are built to withstand lender, SBA, IRS, audit and legal review.
Can the same appraisal support the financing for the acquisition?
The deal value and the collateral value answer different questions, so they are separate conclusions, but we can prepare both from one inspection. FMV supports the purchase and the allocation, while Orderly Liquidation Value (OLV) or Net Orderly Liquidation Value (NOLV) supports the lender financing the deal. Both are documented to the standard a credit officer expects.