MTS Journal

2023  •  Volume 39  •  Issue 1

This issue features a new white paper approved by the MTSC on the Stabilization of Value, as well as articles on appraising a distribution center, eminent domain, bankruptcy, solar projects, diminution of value, and preparing for a field inspection.
Download PDF

Industry Spotlight

Stabilization of Value in Valuing Machinery and Equipment

This article discusses terminology that MTS appraisers may find useful in describing a market characteristic for assets that appear to have value although their chronological age is greater than their expected normal useful or economic life.
PAGE 9 Written by Charlie Dixon, ASA, ARM, Douglas Krieser, ASA, FRICS, Tim Roy, ASA, Garrett Schwartz, ASA, CEA, and Jack Young, ASA, ARM, CPA Reviewed by Jamie Allen, ASA, CMI, Jack Beckwith, ASA, CEA, Paul Cogley, ASA, and Bill Engel, ASA

Articles from this Issue

ASA CEO Update – Continued Steps to Improve Governance

After a detailed study to improve governance efficiency, ASA is implementing a phased restructuring of the BoG reducing the number of discipline governors from 2 to 1 and adding an ARM discipline governor. The process will happen over the next few years.
PAGE 5 Johnnie White, MBA, CAE, CMP, CEO/EVP

Letter From the Discipline Governors

Important information and updates from MTS Discipline Governors.
PAGE 6 Sam Shapiro, ASA, and Ryan Kinahan, ASA, MTS Governors

Letter from the MTSC Chair and MTS Education Update

News from ASA’s Machinery and Technical Specialties (MTS) Committee and updates on ASA MTS classes, conferences and events
PAGE 7 Bill Engel, ASA, President, Strategic Asset Management, & Rick Ellsworth, ASA

Expanding a Professional Lexicon

ASA MTS Committee expanded the professionally accepted appraisal vocabulary, providing terminology for marketplace behavior that didn’t have a term for yet. Professional Lexicon allows all members to clearly communicate about issues and methodologies.
PAGE 9 Jack Young, ASA, CPA, Principal, NorCal Valuation Inc

Multiple Appraisal Concepts: Appraising a Distribution Center

Many different concepts are taught within ASA’s educational offerings. The following case study of a valuation of a distribution center (DC) for ad valorem tax purposes incorporates a significant number of the different concepts into one project.
PAGE 13 Douglas Krieser, ASA Managing Director, Valcon Partners, LTD

Appraising M&E Assets for Eminent Domain

This article provides excerpts from 2023 U.S. Federal Budget that pertain to The Infrastructure Investment and Jobs Act (IIJA) and discusses an eminent domain case study prompted by the Act.
PAGE 18 Fernando Sosa, ASA Director, Machinery & Equipment Valuation Practice, Cushman & Wakefield

Considering Obsolescence for Recycling Equipment

Following a transfer of ownership, a waste management and recycling corporation needed a business valuation for gift tax return. This article discusses the twists and turns of obsolescence and applied appraisal methodology in a specialized market.
PAGE 22 Jack Young, ASA, CPA Principal, NorCal Valuation Inc.

Effective Bankruptcy Appraisal

This article provides an overview of the bankruptcy appraisal environment, summarizes accepted appraisal approaches appraisers consider in a bankruptcy assignment, and discusses the appraisal synthesis and conclusion process.
PAGE 25 Robert F. Reilly, ASA Managing Director, Willamette Management Associates

Appraising Noah’s ARRC

This lighthearted article gives a high-level overview of the considerations required when appraising any tangible asset, including marine assets of any age, employing a modern Noah’s Ark as the subject asset.
PAGE 30 Norm Laskay, ASA Of Counsel, DLS Marine Survey & Appraisal

Effects of Aircraft Damage History on the Diminution of Value

This article discusses a variety of quantitative and qualitative factors to be considered and analyzes the application of diminution of value concepts with a case study of an AS350B2 helicopter.
PAGE 32 Ed Van Winkle, ASA Vice President, Law Enforcement Sales & OEM Projects, CNC Technologies Owner, Van Winkle Aviation LLC

Utility-Scale Solar Projects, Cost-to-Capacity Analysis, and Economies of Scale

This article (provides an overview and) discusses how the application of cost-to-capacity analysis to solar project construction information shows that solar projects have been able to achieve economies of scale with the increase in project size.
PAGE 36 Richard K. Ellsworth, ASA

Research: Tips to Make Your Interviews More Effective

This article contrasts static and dynamic research, addresses the perceived threat of contacting strangers, discusses how to make research interviews more effective, and provides examples of how interviews can expand and support static research data.
PAGE 39 William M. Engel, ASA, President, Strategic Asset Management

Are You Prepared for Field Inspections?

All equipment inspections involve a level of risk. This article will discuss equipment requirements, safety equipment, and personal protective equipment clothing to consider when planning an inspection.
PAGE 42 Brad Hartsburg, ASA President, Fortress