Heart & Soul

WHAT IS

TAE

Heart & Soul

TOTAL  ASSET  EVALUATION

THIS PROPRIETARY SYSTEM IS THEHeart & SoulOF OUR COMPANY. IT WAS CREATED TO ASSURE AN ACCURATE APPRAISAL OF YOUR ASSETS.

TAE UTILIZES THE FOLLOWING 8 ELEMENTS TO DETERMINE VALUE.

Gears One

NEW COST

The first question that almost everybody asks when buying something used, is, “What does a new one cost?”
Most of the time the answer is, “I do not know !!”
The first step of the 8 step protocol of TAE is:  WHAT DOES IT COST NEW?
Of course, many assets being appraised are no longer made or they were special when they were built and an answer to this question is impossible to find.
But, if it is still made or something similar is made, the new cost is extremely important to know. The new cost is one of the most important for setting the used value.

Auction Two

AUCTION RESULTS

The second step in the 8 step protocol of TAE is:
What has an asset like the one being appraised sold for recently at a an auction, be it at live auction at the plant or on online.
There is nothing more important than “comps”. As in real estate appraisals, the first thing that the appraiser does it to see what other properties sold for recently.
The saleability of an asset is only worth what someone will pay for it. Finding out what someone has paid for the asset recently helps to understand.

Age Three

AGE Of THE ASSET

Since there is no “blue book “ on every used piece of used machinery, the appraiser has to be a “detective” and he has to take a lot of factors into consideration of his assessment of value.
The AGE Of THE ASSET is one of the TAE’s 8 questions that have to answer if possible. It is elementary to say, the older something is the less useful life is left in it and therefore it will be worth less. But, again assessing a used asset is like fitting together the pieces of a puzzle. The AGE Of THE ASSET is one of those pieces.

Condition Four

CONDITION OF THE ASSET

Two machines could be made in the same factory, the same year, the same month and days apart when they were delivered to two separate companies.  
One has been used on a single shift and the other was operated on two shifts.  The condition of the two is completely different and thus the value is completely different.  Care, maintenance, use and what they were producing will affect the value.  The fourth protocol condition of the TAE analysis is the CONDITION.

Robot Five

SPECIAL (Custom Built) OR BRANDED

This is a simple one. In the manufacturing world and especially in high production factories, Automation, technology, and AI intelligence  (Colloquially, the term “artificial intelligence” is applied when a machine mimics “cognitive” functions that humans associate with other human minds, such as “learning” and “problem-solving”) has taken over and the standard or branded machine that is purchased sometimes has been modified.
The fifth element of the TAE protocol is to determine how standard or much has it been modified, or was it built from the ground up to be special or custom built (built to fit the needs or requirements of a particular person or application).  The value of a specially built asset will significantly be worth less than a standard or branded machine but depending on the type of appraisal which has been asked for the “Special” machine may not be reduced in value.

Tooled Six

HOW IT IS TOOLED (Equipped)

The value of a machine can vary significantly by what kind of tooling, accessories, attachments, and automation controls have been added.  A so-called “stripped down” machine will be worth “X” whereas the machine-tooled and accessorized differently will be worth “Y.”
Careful attention has this condition, that is reason #6  of the TAE protocol is very important.

Globe Seven

GEOGRAPHIC LOCATION

Geographic Location was identified as an important condition of the TAE process.  Geographic Location can mean many things.  
In what country? what state,? in what city? how far is it from a buyer base? how difficult will be to have it was purchased how easy or difficult will it be to get it shipped to another location by truck, ship or by air?  These are just a few of the questions that need to be answered to fulfill the protocol #7

Rigging Eight

REMOVAL AND REINSTALLATION

This protocol is last, but not because it is the least important. In reality, it should rank at the top. How easy will it be to remove the asset and have it reinstalled?

Typically, the easier it is to remove and reinstall the asset, the higher the value would be. The more difficult it is to remove and reinstall the asset, the lower the overall value would be.

So whether you need an appraisal for one asset or an entire plant put our 35 years of industrial experience to work for you.

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PROFESSIONAL INDUSTRIAL APPRAISALS, LLC