M&E Appraisal Associates, Inc. (“M&EAA”) is expert in the provision of Oil & Gas Pipe Distribution Machinery appraisals.

M&EAA recently appraised the machinery & equipment of a specialty pipe, tubing, and metals distributor. The appraisal was provided for purchase price allocation purposes, and was concluded under the Fair Value valuation concept.

Fair Value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The definition utilized is that issued by the Financial Accounting Standards Board summary statement No. 157 (“FAS 157”). This Statement defines Fair Value, establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements.

Appraisal conclusions: the subject machinery & equipment was very new, which was the primary factor in a very favorable value conclusion. The company maintained numerous international subsidiaries. These locations were valued on a desktop basis.

 A desktop approach is a method of analysis which identifies and values the subject items without the benefit of inspecting them. The appraiser specifically relied on information provided by the subject company as the basis for reporting. The appraiser assumed this information to be accurate. If the information was found to be other than that assumed, the appraiser could arrive at a differing opinion of value. By definition, a desktop appraisal may not contain the detail and content that would be normally included in a standard appraisal. The information provided was considered to be sufficient in order to accurately identify the subject machinery & equipment for the purpose of developing credible appraisal results.