Appraisal Economics Inc. has valued the assets of a privately held machine condition monitoring company for financial reporting purposes, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification 805 (ASC 805). The company is one of only a few worldwide that are devoted to machine condition monitoring through oil analysis. The company’s customers are provided with sophisticated oil testing machinery and testing services, which increase the lives of equipment and reduce machine downtime and maintenance costs. The company was purchased by a private equity firm, and we identified and valued the tangible and intangible assets, including equipment, trademarks, customer relationships, and various technologies. We also valued the company’s goodwill, which was based on our valuation of the assets, and the company’s purchase price.

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Appraisal Economics has determined the fair market value of a bundle of intangible rights associated with the publishing of a scholarly journal in the health and medical field. These rights included the limited use of certain intangibles including trademark, subscriber list, and advertiser relationships. We used the income approach to determine the aggregate fair market value of these rights. Key issues included the probable term of the agreement, given the option of extensions, as well as the projected growth in the various revenue streams, in view of the recent historical decline. Another key issue was the tax status of a willing buyer for the rights, as the payment of income taxes would reduce the income derived from the rights and thus the net rate of return to be realized.

Please click for more information about our valuations of intangible assets and our work for not-for-profits.