Continued use versus removal
Continued-use FMV assumes power, foundations, cranes, and a customer that still wants the parts. Removal FMV strips those installation economics. A five-axis cell that is earning in a certified cell is a different asset from the same cell on a dealer’s floor. Write the premise in the engagement letter.
Going-concern buyers care about continued use because they are buying a running floor. Asset value versus earnings value is the next fork when the iron is worth more than the capitalized earnings.
What FMV is not
It is not an asking price from a used-equipment flyer. It is not forced liquidation value. It is not the business multiple. BizBuySell’s 2.75x SDE median prices owner-operator cash, not a mill (Source: BizBuySell).
ISM’s August 2026 PMI of 54.6 described expansion (Source: ISM). A hotter PMI does not let a seller declare FMV from memory. Order the report.
| Premise | Assumes | Usual audience |
|---|---|---|
| FMV in continued use | Installed going concern | Strategics, many searchers |
| FMV removed | Assets leave the building | Dealers, some tax work |
| OLV | Marketed asset sale | Lenders, ABL |
Who signs, and who does not?
A machinery-and-equipment appraiser signs FMV of the list. Jason Taken is a business broker and will not sign that opinion. BLS May 2025 welder median pay of $53,750 is a labor backdrop, not an equipment conclusion (Source: BLS).
Tax allocation on Form 8594 may use different classes than the lender’s OLV. Those are different opinions for different users. Do not paste one number into the other exhibit.
Why does the glossary isolate this noun?
Because sellers say “the machines are worth FMV” when they mean asking price, OLV, or replacement cost. Isolation keeps the H1 honest. The FAQ holds the question form. The glossary holds the noun. Educational information only.
How continued-use FMV should be briefed
Tell the appraiser whether the cell stays, whether power and foundations stay, and whether the going concern is assumed. A removal premise on a 40,000-pound press is a different job. Installation economics are not a rounding error. Buyers who want to relocate the plant should not order continued-use FMV and then act surprised.
Replacement cost new is another number entirely. Do not let a seller quote dealer list as FMV. The glossary will not publish a control-by-control price guide. When the list is serialized and the premise is written, book a confidential intro call.
Tax, insurance, and deal FMV are not the same opinion
A property-tax rendition, a casualty policy, and a purchase-agreement allocation can all say “FMV” and mean three jobs. Ask which user the report is for. A deal premise of continued use can still disagree with a tax assessor. Do not paste one PDF into every exhibit.
A searcher who will keep the plant wants continued use. A strategic who will fold the work into another building wants removal. Ask before you order. Continued-use FMV on a press that will be pit-extracted is a wasted fee. Write the premise in the letter if the iron is the floor of the deal. A CIM should name the premise next to any iron number, or omit the number.
Machinery and equipment appraisals compares the three standards. The appraiser signs the premise you ordered. Jason Taken will not. After the premise is written, a confidential intro call is the conversion path.
What FMV is not allowed to mean on a CIM
It is not an asking price from a used-equipment flyer. It is not replacement cost new. It is not orderly liquidation value. It is not the business multiple. BizBuySell’s 2.75x SDE median prices owner-operator cash, not a mill (Source: BizBuySell). ISM’s August 2026 PMI of 54.6 described expansion (Source: ISM). A hotter PMI does not let a seller declare FMV from memory.
How it shows up: a credentialed opinion with a written premise — continued use in place, or value as if removed — next to a serialized list. If the CIM prints an iron number without that premise, omit the number. Tax allocation, insurance, and the deal can all say FMV and mean three jobs. Ask which user the report is for before you paste one PDF into every exhibit.