The appraiser with a Machinery and Technical Specialties (MTS) designation serves as an independent third party who provides unbiased opinions of value for his or her clients with regards to their personal property used in the normal course of business operations. Following the standards and guidelines promulgated by the Uniform Standards of Professional Appraisal Practice (USPAP), issued by the Appraisal Foundation, the MTS appraiser uses the appropriate and necessary valuation techniques to value many different types of personal property for multiple purposes. These purposes can be for insurance coverage (replacement cost), allocation of purchase price due to a transaction (fair value), state and local tax, federal and international tax planning (fair market value), collateral financing / asset-based lending (orderly/forced liquidation value), and other reasons such as gift and estate planning or restructuring / reorganizations.
Machinery and equipment that is used in the normal course of business includes manufacturing and production assets (metalworking machinery, newsprint presses, fermenters, etc.), service company assets (furniture and fixtures, office equipment, computer hardware and software, and licensed vehicles), and all support equipment (warehouse racking, forklifts, air compressors, etc.). The MTS appraiser typically sees these assets across several business and industry types, as there are commonalities between machinery and equipment assets from one business to the next. However, certain industries are characterized as having very large machinery and equipment assets that are either custom built or have highly customized original equipment manufacturer components. These types of industries would include pulp and paper, chemicals, steel, and food processing.