SUPPORT SMALL BUSINESS

The 1st week of May was Small Business Week. Small business week is really every week of the year. According to the SBA, small businesses (under 500 employees) number nearly 32 million and account for 99.9 percent of all business in the U.S. Whether it is a small café, accountant, electrician, consultant, or pet groomer, those of us who started a business, just hope that our passion to follow a dream, be independent, and make it on our own, becomes successful.

Small business owners may have found a market niche in which their business idea may work or a better way to serve customers. Their little company may just stay local but could become national in scope. I have been a fan of the TV show, The Food That Build America. Neighborhood cookie shops to burger joints were started by men and women who had a passion for what they made and discovered millions of people liked their product.

I have had the pleasure to have started a couple of companies to serve local clients but ultimately grew to serving customers throughout the U.S. Like other entrepreneurs, we had an idea to provide something new or better. If you have thought about or have the desire to starting your own business, try to follow through. To echo a current country song:

IF YOU HAVE CHANCE, TAKE IT.  IF YOU HAVE DREAM, CHASE IT!

Post by: Ken Fancolly, Owner, Certified Asset Appraisals

Lenders, what is your borrower’s collateral really worth?

Lenders, do you use an outside appraisal firm to substantiate the value of the hard assets your business clients are pledging for their loans? When considering engaging an outside appraiser, make sure the appraiser has the requisite knowledge and experience required to perform a professional quality appraisal. Collateral for business loans is an integral layer of security for lenders. The collateral can vary based upon the size of the loan but it can range from small equipment and furniture to massive industrial machines.

For banks that participate in the Small Business Administration (SBA) loan program, independent appraisals may be required for certain business borrowers for. SBA appraisal requirements for those include:

  1. It be conducted and written by a qualified appraiser.
  2. It be conducted no more than12 months prior to the loan application.
  3. It must be conducted in compliance with the current Uniform Standards of Professional Appraisal Practice (USPAP) guidelines. USPAP is the generally recognized ethical and performance standards for the appraisal profession in the United States.

Our company, Certified Asset Appraisals, works with many lenders throughout the U.S. for commercial equipment appraisals in a wide variety of industries. These include construction, industrial, oil field, medical, restaurant, hospitality, and transportation. We can perform on-site asset inventories and inspections as well as desktop appraisals of the assets being used as collateral. Each appraisal is geared to meet our lender client’s needs with quality appraisals, and fast turn-around times.

When you are ready and need an appraisal company, our qualified experienced appraisers are ready to help. Email us or give us a call.

Changing Medical Practice Environment

Charitable Contributions: Success Stories

My recent blog on end-of-year contributions and IRS requirements highlighted what companies and individuals must do to do it correctly. I wanted to share some recent success stories.

We were contacted by a company who wanted to donate Personal Protective Equipment (PPE) and products to Global Empowerment Mission in Miami, Florida. These entailed thousands of face masks. Global Empowerment (GEM) has supported missions in over 288 countries and the U.S in response to regional and global tragedies.  Its efforts have brought relief and resources to people suffering as result of the California wildfires, Venezuelan refugee crisis, cyclone in Mozambique, Haiti hurricanes, and Guatemalan volcano, just to name a few.

The one company that first contacted us has resulted in several more companies donating to GEM.  Again, more face masks, but also hand sanitizers and even Covid testing kits. And again, thousands upon thousands of face masks of all different types and bottles of sanitizers.

All we did was provide the donating company a certified valuation of the items being donated by our appraisers and completing the IRS 8283 noncash charitable contribution form which has to be signed by an appraiser.

And oh yes, we were contacted by another company that was donating PPE items along with infrared thermometers to the ACLU Georgia and Atlanta Food Bank. And another company in Illinois donating medical supplies and assistive devices. And this list goes on.

Certified Asset Appraisals performs appraisals on many different types of equipment and products. This effort has been special on so many fronts. It is gratifying to be of assistance to donors and these amazing donee organizations alike.  Let us help you as well.

End of Year Charitable Contributions and IRS Tax Deductions

Are you, your company, or clients looking to donate items and using those donated items as tax deductions? Our appraisal company has been getting many requests from individuals and companies or their accountants donating items to charitable organizations. Items being donated have included face masks, medical equipment and supplies, electric wheelchairs, construction equipment, vintage railroad equipment, and vehicles.

They are coming to us because they need IRS Form 8283 Noncash Charitable Contributions completed which requires an appraiser’s certification.

The Internal Revenue Service requires Form 8283 Noncash Charitable Contribution be completed and attached to the tax return for:

  • Any personal property with a claimed deduction exceeding $500 but less than $5,000, the client must complete Section A of the Form 8283 and attach it to the tax return (this includes donation of household contents exceeding claimed ($500)
  • Any personal property with a claimed deduction of $5,000 or more, Section B of IRS Form 8283 must be completed (including “qualified appraiser’s” and donee’s signatures) and attached to the tax return. A qualified appraisal must be prepared for the donated property.

Qualified appraisal: An appraisal document that is made, signed, and dated by a qualified appraiser in accordance with generally accepted appraisal standards.

That is where we come in. Our company, Certified Asset Appraisals, understands the IRS donation requirements and can complete the form for you.  We will also provide a written appraisal report as required. Whether you are donating one item or many, it’s simple and easy. Just send us a list and description of what you are donating and we will do the rest.

COVID-19 Impacts Medical Practices

There have been numerous articles, blogs, and news reports of COVID-19 and its accompanying impact on business of all types and sizes through out the U.S. It’s impact on the health care industry has been equally severe, especially on physician and medical practices. As appraisers of health care companies and medical equipment, we have seen it first-hand.

Medical Practice Equipment ValuationsOver the past several years, there has been a substantial increase in the number of clinics either closing or merging with a larger practice or hospital company. An article in the May 7th issue of Medscape, pointed out that there has been a 20.8% increase in the number of practices merging or being acquired by another organization.

A recent article by FTI Consulting Inc. highlighted the issue of COVID-19 by pointing out that many small practices have been struggling for some time. COVID-19 shutdowns have exasperated their already high financial obligations and decreased cash flow. Stay at home orders shut down patient visits and practices have had to send their staffs home.

I spoke with Michael Moran of FTI regarding their article and what they’re seeing in the medical practice marketplace. They are witnessing the same thing. More practices will be shutting down or looking for an ownership partner. We’re getting more inquiries from physicians and medical practice administrators and it’s the beginning of a larger trend due to the COVID-19 pandemic.

Our company, Certified Asset Appraisals has provided inventory and appraisal services for businesses of all kinds but especially health care companies. We can assist in the merger and acquisition process with our inventory and valuation services. Our clients include large health care companies as well as small medical practices. All of them were looking to identify and value the fixed assets in their facilities that they operate. This process is also helpful for groups that are considering the acquisition of a practice.

If we can assist your company in any way, or if you would like to get more information about how we work, we would love to talk with you.

Why Do I Care About The Value Of Your Company’s Assets?

Ken FancollyHello, my name is Ken Fancolly and welcome to the first blog from my company, Certified Asset Appraisals.  Our company has been conducting personal property valuations for over 20 years.  I just thought it was time to share our experiences with and knowledge of the asset management and valuation industry with the hope you can find some helpful hints, answer some common questions, and obtain some useful information.  But most importantly, why I care about the value of the property in your organization.

Over the next few weeks, we will highlight a wide range of issues and topics from the impact of physician reimbursements and their impact on independent practice values to personal property tax valuations to sports facilities.  The asset tagging and asset inventory process will get some attention as well.  Let me know what is important to you and your company as it relates to values and asset management. I want to make the blog relevant and useful you.  Talking about asset values generally brings to mind a bunch of boring number crunching but I’ll but put some different spins on the subject.

SO, WHY DO I CARE…and…WHY SHOULD YOU?

Everyone has a stake in what their company is worth.  Not just its stock value but what the physical things surrounding you are worth.  From the chairs everyone is sitting in to the most sophisticated piece of equipment the company uses to produce its products or serve its customers.  Unless something is obsolete or junk, everything has value.  Depreciation schedules only show the book value after depreciation.  Once the asset has been depreciated down to zero, it still has value.  If the company is being sold, the true value of the asset is not necessarily the book value but what the fair market value is.

If your company is looking to refinance some heavy construction equipment or manufacturing equipment, the lending institution is going to want to know if the equipment has enough collateral value to make the loan viable.

Every company wants its tax bill to be as low as possible.  One aspect of this the county’s tangible personal property tax levy.  Don’t rely only on the county’s tax collector to set the value on your company’s tangible property.  A well-researched property valuation can establish the true value and ultimately lead to lower personal property taxes.

Every organization, whether it is a school district or a hospital, has to make sure its property insurance is adequate.  When doing an appraisal for an organization, I often see the replacement value of their inventory is higher than what is covered by their insurance.  Knowing the current replacement costs and insuring the assets with that can save millions from a  catastrophic event such as a fire or tornado.

So, why do I care?
I want people and companies to really know what their assets are worth. Call us or call someone else but have an appraisal done by a competent, certified, and experienced appraiser. It will pay dividends in the future.