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Branford Valuations - Definitions
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 Branford Valuations utilizes the following definitions of value which have been derived from industry accepted standards as well as the definitions published by the American Society of Appraisers.
Replacement Cost New
“Branford Valuations’ professional opinion of the estimated cost in terms of currency in providing substitutes similar to the assets inspected that are new and exhibit modern design, technology, quality, and utility. If a direct replacement is unavailable the appraiser uses professional judgment in estimating the cost. This cost estimate excludes taxes and transportation.”
Replacement Cost Used
“Branford Valuations’ professional opinion of the estimated cost in terms of currency in providing substitutes similar to the assets inspected having comparable utility and exhibiting similar design and technology. This cost estimate excludes taxes and transportation.”
Market Value In Place
“Branford Valuations’ professional opinion of the estimated gross amount expressed in terms of currency that the subject personal property could typically realize in an exchange between a willing buyer and a willing seller, with equity to both, neither being under compulsion to buy or sell, and both parties fully aware of all relevant facts, as of the effective date of the appraisal report. It is assumed that the assets are being sold to remain in place and in operation, taking advantage of all leasehold and site improvements designed to facilitate their operation. The opinion does not take into consideration the past, present, or forecasted income-generating performance of the product lines produced. It is, however, assumed that all assets that have been specially designed and/or built will continue to be used in the manner for which they were originally intended.”
Fair Market Value - Removed
“Branford Valuations’ professional opinion of the estimated gross amount expressed in terms of currency that the subject personal property could typically realize in an exchange between a willing buyer and a willing seller, with equity to both, neither being under compulsion to buy or sell, and both parties fully aware of all relevant facts, as of the effective date of the appraisal report. The opinion takes into consideration a reasonable time period would be allowed for exposure to the open market. Both the buyer and the seller acknowledge that the assets must be dismantled and removed at the buyer’s expense.”
Orderly Liquidation Value In Place
“Branford Valuations’ professional opinion of the estimated most probable price expressed in terms of currency that a knowledgeable buyer would be willing to pay a knowledgeable seller for the assets in place, taking advantage of all leasehold and site improvements designed to facilitate their operation, with both the buyer and seller acknowledging that the assets must be sold and are being purchased ‘as is, where is’, with the intent of continuing the operation of the assets in the manner for which they were intended.”
This definition assumes an adequate period of time to properly advertise the assets in a commercially reasonable manner. However, it is clearly understood by both the buyer and seller that the sale of the assets is under duress, and that the marketing time is limited to six to twelve months.
It is further assumed that the assets have been evaluated at a level that would motivate speculative purchasers to buy, and does not take into consideration the past, present, or forecasted income-generating performance of the company or product lines produced. All assets that have been specially designed and/or built will continue to be used in the manner for which they were originally intended.
Orderly Liquidation Value
“Branford Valuations’ professional opinion of the estimated most probable price expressed in terms of currency that the subject personal property could typically realize at a properly advertised, professionally managed and privately negotiated sale. The opinion takes into consideration the seller being obligated to sell over a three to six month time period, as of the effective date of this appraisal report. Further, the ability of the asset group to draw sufficient prospective buyers to ensure competitive offers is considered. All assets are to be sold on a piecemeal basis ‘as is, where is’ with the purchaser being responsible for removal of the assets at their own risk and expense. Any deletions or additions to the assets appraised could change the psychological and/or monetary appeal necessary to attain the value(s) estimated.”
Auction/Forced Liquidation Value
"Branford Valuations’ professional opinion of the estimated gross amount expressed in terms of currency that the subject personal property could typically realize at a properly advertised and conducted public auction sale within a one to two month time period. The opinion takes into consideration the seller being compelled to sell and present day economic conditions, as of the effective date of the appraisal report. The conclusions also consider location, difficulty of removal, condition, adaptability, specialization, marketability, overall appearance and psychological appeal. Further, the ability of the asset group to draw sufficient prospective buyers to ensure competitive offers is considered. All assets are to be sold on a piecemeal basis 'as is, where is' with the purchaser being responsible for removal of the assets at their own risk and expense. Any deletions or additions to the assets appraised could change the psychological and/or monetary appeal necessary to attain the value(s) estimated." |
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