EXPOSED

If You Are Stuck In A Rut

And You Need To Make
More Money, Expand Your
Business Or Reduce The
Risk Of Liability

Discover The
7 Secrets Behind
Why You Should Act
NOW To Earn A
CMEA Professional
Designation &
Why Were Different!
CMEA Training Preview Pak

www.nebbinstitute.org
www.nebbi.org
Copyright 2006 by John R. Harris, NEBB Institute, Inc.

Discover The 9 Secrets Why You Need To Earn

The Certified Machinery & Equipment Appraiser
(CMEA) Professional Designation Today
NEBB Institute is the only nationally
recognized Institute that gives its elite members
machinery/equipment appraisal training,
machinery/equipment brokerage training,
certification, a complete turn key proven system,
and 24 hour use of our exclusive Appraisers
Database filled with over 5 million comparables
and sources. Thats not all, NEBB Institute members receive 24 hour support 7 days a week on
machinery/equipment appraisals, brokerage, and
website. Our commitment to our members and
the public is adhering to the highest standards of
excellence backed by over 30 years of
knowledge, solid expertise, integrity, a sterling
reputation and recognized certification in the
machinery and equipment field. The cornerstone
of NEBB Institute, is its international network
conducting appraisals in accordance with the
ethics, standards and regulations set forth in the
Uniform Standards of Professional Appraisal
Practice (USPAP).

Secret #1
Expand And Add On To Your
Business
9 out of 10 Appraisers, M&E Dealers, M&A
Professionals, Accountants, CPAs, Attorneys,
Bankers, Adjusters, Insurance and Real Estate
Professionals agree on one strategy for their
business...today, more than ever, more than one
discipline is required in order to grow and
succeed! Your clients look to you for more than
one area of expertise.
For example, how can you value a business if
there is little or no goodwill? Only the tangible
assets have value, How do you value those assets? You do have a couple of options...which
one have you typically use?
1.
2.
3.
4.
5.
6.

Look at the book value (not accurate)?

Take the owners word for it? (risky)
Take the word of some person who is
non-certified in machinery and
equipment? (filled with liability)
Guess? (filled with liability)
Walk away? (lose business)
Pay big bucks for someone else to
conduct the appraisal?

Just think, How many times you could have

expanded your business just by being qualified
and able to deliver a Certified Machinery and
Equipment Appraisal! Business professionals
have proven it is the PERFECT add-on compliment to their current business! How much money
has slipped through your fingers?

What Are The Typical Reasons For A

Qualified And CERTIFIED Machinery And
Equipment Appraisal?
How many times a day have you come across a
business owner that had a business situation where
they were in need of just 1 of these services?

Business Valuations
Buy/Sell Agreements
Financing / SBA Loans / Leasing
Converting From C to S Corp
Tax Purposes (Pension Protection Act)
Insurable Value
ESOPs
Estate Settlements
Cost Segregation
Partnerships
Gift Planning
Trust Agreements
Retirement Planning
1031 Exchanges
Dissolutions
Litigation Support
Sarbanes-Oxley
FASB 141 & 142
GASB 34

It Is Important To Note: The SBAs new SOPs, a

qualified USPAP compliant machinery & equipment appraisal is required! In addition, AICPA
demands a valuation depend upon substantiated
relevant data and a qualified, substantiated, and
certified value!

25 Million Businesses In The United

States Will Require A Certified
Machinery And Equipment Appraisal
At One Time Or Another.

Who Do You Think Will

Get The Business?

Secret #2
There Is A Difference Between
Certified vs. Non-Certified
What is the difference between a
Certified Appraiser and a Non-Certified
Appraiser? Simply said, a Certified Appraiser
is a professional. Certification implies that
the appraiser has had special training in the
methodology of appraisal and knows the
guidelines for determining values. A
Certified Appraiser also has ethics. These
ethics hold the Certified Professional (the
Appraiser) to a higher standard of thinking
and conduct than a Non-Certified person.
Also, a Certified Appraiser knows not only
how to find values in a systematic approach
but also knows how to report those values in
a format that is acceptable to the client, the
industry and the financial world. The
guidelines followed by a Certified Appraiser
are known as the Uniform Standards of
Professional Appraisal Practice (USPAP),
which has been endorsed by the Appraisal
Foundation and ultimately the United States
Congress.
In many communities, lenders, attorneys,
accountants, buyers and sellers, and other
users of appraisal reports have had to rely
on Non-Certified individuals to report values
for various reasons. Interestingly, many
consumers do not know the detail and the
methodology that a Certified Appraiser goes
through in determining values and in reporting those values.
How many times has it happened that a
Non-Certified (untrained) individual has
walked around with a clipboard looking at
equipment and, while observing the equipment, write down a value, which was later
reported to the user of the report? These
individuals use their experience with a large
dose of guesstimation. This is not to say
that such an individual is incorrect with
his/her values. However, when the
consumer wants to truly depend on the
outcome, he/she usually wants a bit more
effort spent in the determination of values
reported.

Oftentimes, values make a major impact on

the financial survival of an individual, family or
a company. When major values exist, or do
not exist as the case may be, who would want
someone with a clipboard just guessing at the
values?
Oftentimes, the Non-Certified person with a
clipboard is not aware of the liability involved
in guessing based on experience. They do
not understand the definition of appraisal. An
appraisal is a defensible estimate of value.
When they just guess based on experience,
that is not defensible. The Certified Appraiser
knows that if he/she can lay down facts of sold
comparables, (similar equipment that has
actually sold on the market), he/she is protected to a large degree by the professional prudence employed.
In summary, Non-Certified Appraisers
are dangerous. They are dangerous to the
clients for whom they work, and they are a
danger to themselves although they may not
realize it. As someone expressed to this writer
recently, If I need brain surgery, I dont necessarily want the cheapest guy in town. I will
want to check out his qualifications also. Its
just too important! Many people are willing to
cut your skull open and look for a problem. I
want a surgeon with experience and one that I
know has been to school. We would agree..

Hear A Podcast From Your Peers...

http://www.cmea.nebbi.org

Secret #3
Why The CMEA Certification
Is Important To You!
There are income approaches to value and
there are asset approaches to value. Large
corporations rely primarily on income
approaches. Privately held corporations, in the
realm of small to medium size businesses, are
in a different world. In this world, there are
combinations of income approaches as well as
tangible valuation approaches utilized in
performing appraisal work.
In stronger economic times, when
businesses were very profitable, the income
approaches were quite popular. But in recent
years, we have seen business values fall.
Some analysts have told us that since
September 11, 2001, the gross income of some
businesses has dropped as much as 25%. The
subsequent reduction in economic income has
caused many cash flow minded lenders (and
business appraisers) to begin worrying about
income approaches to value. Many, as we
have noted, are now returning to being asset
minded in their thinking (bankers too).

Receive Instantaneous
Credibility
Business Appraisers give themselves much
more credibility and set themselves apart from
competitors when they become a Certified
Machinery and Equipment Appraiser (CMEA).
Highest and best use is always an axiom of appraisal and sometimes highest and best use is to
focus on the tangible assets of the company as
opposed to goodwill (again, if there is little goodwill or no goodwill).
Historically, Business Appraisers have
found values for tangible assets in three ways:
(a) used balance sheet values which are not the
same as fair market value; (b) relied on the owners statement as to value of the tangible assets;
or (c) relied on some non-certified
persons
word such as a dealer or auctioneer who often
has another agenda. Therefore, real credibility
comes to the Business Appraiser when they can
say, I am also Certified in tangible assets
such as machinery and equipment.
Copyright 2006 by John R. Harris, NEBB Institute, Inc.

Secret #4
Reduce The Risk Of Liability
Also certain approaches, which are
standard in the business appraisal industry,
require knowledge of the fair market value of the
assets. For example, take the Excess Earnings
Approach (sometimes referred to as the Investment Value Analysis). This approach requires
that a return on investment be calculated on the
value of the tangible assets, and that resulting
numerical value must be subtracted from cash
flow before capitalization of the income stream.
Then the resulting capitalized value is added to
the Fair Market Value of the tangible assets for
the total value of the business. All of this is to
say... if one does not start out knowing the true
value of the tangible assets, he/she cannot
perform this analysis correctly.
And what about those times when there is
no goodwill? The assignment basically becomes
an appraisal of the tangible assets. Many
Business Appraisers are avoiding the embarrassment of being on a witness stand and having to
admit that a substantial portion (if not all) of their
value came from non-certified sources. It really
turns out to be just a guess on their part.
Real Estate appraisers have found that a
CMEA designation provides a natural PROFIT
CENTER ! As many real estate appraisers
claim, I am now working SMARTER rather than
harder!
A CMEA is an avenue for residential
appraisers to move up to the commercial
sector. Everyone knows there is more profit to
be made working for commercial accounts than
residential customers. But, without taking on the
increased liability of commercial real estate.
The designation also opens up another
market with a new set of clients that can enhance
real estate business. Yes, machinery/equipment
appraisal users have a need for real estate
appraisals sometimes too.

Secret #6

Secret #5
Open Doors That Were
Once Closed

Member Benefits That Save

You Money And Time

NEBB Institute members are getting doors

opened that were once closed. Banks, CPAs,
Attorneys, Courts all are demanding to know the
answer to one very important questionWhats
the machinery and equipment really worth?

Professional Designation: CMEA pin, certificate

and professional wall plaque.

When youre a CMEA, you are in demand

because you are able to provide the answer to their
poignant question backed by research and in accordance with USPAP ethics and standards.

Monthly Training Calls: Once a month hear

success stories, guest speakers, and training.

An Appraisal Report written by a CMEA professional, will hold up to challenge and scrutiny with
banks, lenders, IRS, attorneys, courts, CPAs,
buyers and sellers.

Dont Take Our Word For It...

Every time I needed an appraisal of the
machinery and equipment, I either had to pay big
bucks for the appraisal and incorporate it into my
fee or walk away from the business. The best decision I made was to join NEBB Institute and earn my
CMEA designation. I have expanded my business
significantly performing my own machinery and
equipment appraisals. Plus, I have eliminated the
need to rely on a third party.
J. Love, CPA/PFS, CFP, CVA, CMEA
Abilene, TX

I made a significant amount of money in just 30

days after CMEA training! I know that in order to
succeed, I had to add another discipline and surround myself with an organization that was credible, provided support and had an active national
network. I have expanded my business 45% just
by adding the CMEA professional designation behind my name.
D. Weber, SBA, CMEA
Belleair, FL

Ive increased my business significantly since

joining because I have an avenue to perform my
business in a much more professional manner. Ive
been able to accommodate the demand for
machinery and equipment appraisals that I was
unable to provide before joining. Once I went
through the two days of comprehensive training, I
understood much better why a machinery and
equipment appraisal is vital to the appraisal process. I was able to implement the Institutes turnkey
system immediately.
A. Perez, CBS, CMEA
San Diego, CA

National Member Database: Individual member

profiles with a link to a members website and email
address.

National Marketing: NEBB places ads with major

CPA, attorney and lender publications which drives
prospects to the NEBB websites to locate a CMEA
in their area.
Press Releases: NEBB Institute writes and places
a press release with the members newspaper of
choice.
Refresher Training: Each member is offered a
refresher CMEA course once a year at no charge.
Appraisers Resource Database: An exclusive
Appraisers Resource database contains in excess
of 6 million comparables and sources.
Website: Members can opt to obtain a professional website at a significantly discounted rate designed by an industry leader.
Website Hosting: Low rates for domain name registration or transfer, hosting and all of the bells and
whistles complete with stats and search engine
optimization.
FREE Professional Email Address: NEBB Institute members receive a FREE email address.
Access your email from anywhere complete with
contacts, notes, calendar, etc.
Industry Reports: Members can receive FREE
specific reports relating to their assignment. Provides credibility and substantiation to every report.
Marketing: Professionally created brochures,
letterhead, cards and envelopes available for a
member to purchase at a low rate.
Marketing Resources: FREE resources from top
marketing, advertising and sales trainers.
Initial Start-Up : Each member leaves training with
templates for a Yellow Page ad, marketing letters
and power to get in ideas. Its a turn-key system.

And Much, Much More!

Copyright 2006 by John R. Harris, NEBB Institute, Inc.

CMEA Training Arms You With All The

Information Youll Need To Successfully
And Confidently Perform A
Certified Machinery & Equipment Appraisal
That Holds Up To Scrutiny

Here is a brief preview of what youll learn:

What is USPAP?
Performing a USPAP compliant Certified
Machinery & Equipment Appraisal Report.
Machinery/Equipment appraisal profit center.
Typical reasons for an appraisal.
Point-by-point industry hot buttons.
Approaches to value.
What is the window of value?
What are NEBBs rules of thumbs and secrets
to success?
What is the industry norm for equipment
appraisal fees?
What is considered an item?
Step-by-step instructions on how to bid,
conduct, and submit an appraisal.
Is there residual income? How to get it.
Court testimony, selling appraisals and finding
values.
Turn-key proven results marketing system.
USPAP compliant Certified Machinery/
Equipment Desktop And Summary Appraisal
Report.
Forms youll need and why.
Why you dont need a background in
machinery or equipment to be a good and
successful CMEA.
Exclusive use of NEBB Institutes Appraisers
Database - how to navigate and obtain
substantiated values.
Earning your CMEA professional designation by
submitting and passing a 100-question written
exam and Sample Appraisal Report reviewed
by the Director and Board.

And Much, Much More!

Toll Free (866) 632-2467
www.nebbi.org and www.nebbinstitute.org

Whether You Are In The

United States Or In
Another Country, You Can
Benefit From
Earning The Prestigious
CMEA
Professional Credential!
Heres A Quick Snap Shot And Overview Of What You Can Expect If You Join The Vast
Network Of 450 CMEAs (Certified Machinery & Equipment Appraisers)
Coast-to-Coast And Worldwide.
If Youre An Auctioneer, The CMEA Will Benefit You By:

Increased auctions
Increased professional credibility
Additional and expanded business opportunities
Reduces the risk of liability
Surpass competition
Make more money

If Youre A Real Estate Appraiser, The CMEA Will

Benefit You By:

Perfect compliment to your appraisal business

Increased professional credibility
Additional and expanded business opportunities
Reduces the risk of liability
Surpass competition
Make more money

If Youre A Business Valuation Professional, The CMEA

Will Benefit You By:

If Youre A Business Intermediary, The CMEA Will

Benefit You By:

Substantiated equipment values within the valuation

Increased professional credibility
Additional and expanded business opportunities
Reduces the risk of liability
Surpass competition
Make more money

Earn A Living While Youre Waiting To Make A

Killing
Increased professional credibility
Additional and expanded business opportunities
Get by the gatekeeper
Surpass competition
Make more money
Earn 10 hours of CPE through IBBA
If Youre A CPA, The CMEA Will Benefit You By:

Substantiated equipment values - no more

guessing or relying on the word of an owner

Equipment values hold up to scrutiny before courts,
IRS, lenders, and others
Additional and expanded business opportunities
Reduces the risk of liability
Surpass competition
Earn 12 hours of CPE through NASB

Secret #7
Two Options For CMEA
Training

Group Internet Based

CMEA Training
You want to earn your CMEA
professional designation and start taking
advantage of the many benefits it has to
offer you and your clients but you cant get
away from the office or were training in a
location that is just too difficult to get to
Group Internet Based CMEA Training is
for you! Its like training one-on-one with
your own personal instructor. Heres how it
works If you decide to train in the comfort
of your home or office, well rush you a
NEBB Institute Training Manual. Youll also
receive a professionally embossed Certified
Appraisal Report. The CMEA training class
is simultaneous web instruction and conference call with the Trainer and other new
members. You will receive the same information as if you were sitting right in the
classroom but you dont need to leave your
office! We encourage interaction, questions
and answers during the training. Class size
is limited to 8.
So hurry and register, we fill up fast!

Group Classroom CMEA Training

Two consecutive days with Daniel Hall the Director of
NEBB Institute. CMEA training is comprehensive and
complete. Well cover in detail the standards and ethics of
USPAP, how to conduct an appraisal, marketing, and youll
walk away with a turn-key system that you can immediately
implement.
When is the next Group Classroom CMEA Training
scheduled?

ThursdayMay 26 & Friday May 27

Online Virtual Training

I Want To Attend...What Do I Do Next?

1. Review and complete the attached
NEBB License Agreement and Membership Agreement.
2. Fax the BOTH and your payment to
(866) 992-8669 to reserve your seat!
Questions? Call Toll FREE (866) 632-2467

Heres The $1,000,000 Question We Want You To Ask

What Makes NEBB Institute Different From Anyone Else?
Thats a great question, and we are so glad that you asked! There are other fine associations that deal with equipment appraisal were just different. Heres just a brief list how we are different put us to the test!
100% focused on your success in landing and
performing Certified Equipment Appraisals;
Comprehensive and intensive instruction;
24/7 support 365 days a year;
Land assignments from national advertising.
We send prospects to the Locate a CMEA map;
We display your bio and photo on both websites;
Complete turn-key results proven marketing tool-kit;
120 Fast Start Check List;
FREE list of lenders, CPAs, & Attorneys when you
are perfect aligned and earn the CMEA;
FREE Press Release promoting you;

Machinery & Equipment Brokerage training;

MEA ReportWriter - the ONLY software for a USPAP
compliant Appraisal Templates;
ListServe connecting all Members together easily;
FREE membership into the International Society of
Business Analysts;
FREE industry specific reports to substantiate values; and
Monthly newsletter and International Conference Call.