Diagnosis - Insufficient Outrage On Fri, 05 Jul 2013 17:08:09 -0400, "Michael A. Terrell" wrote:


Tom Gardner wrote:

On 7/2/2013 10:48 AM, Ed Huntress wrote:
On Tue, 02 Jul 2013 02:37:57 -0400, Tom Gardner Mars@Tacks wrote:

On 7/1/2013 9:40 PM, Ed Huntress wrote:

Amazed that they were high, or low? Usually, when you do it that way,
the value is little better than scrap value. Otherwise, you should be
in the machinery-building business.

The bank wants to know the minimum it could get by liquidating your
business.


I don't fully understand the tax implications but I will ask the
accountant to explain it slowly in smaller words.

You have some conflicting issues at work when it comes to valuing your
equipment and your business --tax issues; evaluating your business for
*your* sake -- deciding whether it's viable as a business in
comparative financial terms or if you're really just buying yourself a
job; insurance -- what it would cost to replace. And another is what
the banks think of your creditworthiness, both in terms of the
liquidation value of your physical assets and your prospects for
future success ("goodwill" value, value of patents, etc.).

That's normal. That's small business in general. And sorting them out
is one reason we have accountants -- or you do. I don't. g


They valued those OEM machines at more than 5 times what I did and some
at 25x. They valued 3 of my/their machines that were heavily modified
at 75k each and I has less than 3k in each and I estimated value at 10k
each. They make products faster and better than any other in the world.
(very small niche) I needed value to show the bank and my newest
non-shopbuilt machine was bought in 1965, thus the OEM estimate. When
people ask me how old is a machine, I say "Which part?" The OEM still
makes the exact base machines I have. Sometimes they call me to ask how
I solved some problem or another, not really surprising, I've probably
been working on them since before the OEM engineers were born.

I have no idea why they were evaluated that high. Your accountant
should be able to explain it. I wonder if they were looking at
replacement cost or liquidation value. The former is going to be high.


Might not be doing this much longer, we're negotiating with a company in
Taiwan. I'm not getting younger and have no kids. I'm thinking golf,
Walleye and shooting sports.

'Sounds like fun. I'm planning to die in harness.


Skydiving?


Dragging a plow, with another ass...

We're going to do the world a favor and plow you under before you
stink the place up, Drool Cup.

--
Ed Huntress