VALUATION/APPRAISAL OF MEDICAL EQUIPMENT AND INDUSTRIAL ASSETS INCLUDING MACHINERY & EQUIPMENT

Foxboro Consulting Group, Inc. provides expert medical equipment valuation services and fixed asset appraisals to help organizations determine the fair market value of machinery, industrial equipment, and medical devices. Accurate valuations support financial reporting, regulatory compliance, and strategic decision-making.

Assets Included in the Analysis

Our appraisal analysis typically includes the following assets:

• Furniture & Fixtures

• Software

• Medical Equipment

• Computer & Office Equipment

• Machinery & Equipment

• Tenant Improvements

All other assets and liabilities not listed are excluded from the analysis.

VALUATION APPROACHES

We apply three primary approaches to determine asset value:

Income Approach: Estimates the present value of future economic benefits, including earnings, cost savings, tax deductions, and proceeds from disposition.

Sales Comparison Approach: Compares recent sales of similar assets and adjusts for differences in time, location, size, condition, and utility.

Cost Approach: Estimates the cost to reconstruct or replace the asset, adjusted for physical depreciation, functional limitations, and economic obsolescence.

When multiple approaches are used, we reconcile the results based on asset type, data reliability, and the most appropriate method.

VALUATION METHODOLOGY

We follow the Uniform Standards of Professional Appraisal Practice (USPAP). Each asset is analyzed using the cost and/or sales comparison approaches, considering:

• Extent, character, and utility of the asset

• Cost of reproduction, installation, and depreciation

• Age, condition, and maintenance history

• Current market prices and potential sale proceeds

• Economic and functional utility

We rely on property records and information provided by clients to develop detailed valuations. Our analysis does not evaluate the prospective earnings of the operations using the assets.

Standard of Value

Fair Market Value (FMV) is defined as the price at which a property or asset would change hands between a willing buyer and a willing seller, neither compelled to buy or sell, both having reasonable knowledge of relevant facts.

FMV assumes continued use in current operations and does not represent piecemeal sale value.

Stark II Regulations

The Stark regulations define fair market value as:

“The price at which bona fide sales have been consummated for assets of like type, quality, and quantity in a particular market at the time of acquisition, or the compensation included in service agreements with comparable terms, without considering the volume of referrals.”

Foxboro Consulting interprets this definition consistently with tax purposes, ensuring compliance and accuracy.