It is within the acquiring company’s financial reporting and tax reporting environment that the appraiser can apply their trade in the perfect manner to fit the service application. Here are the financial and tax givens: • “Target” is being purchased; • There is ample goodwill; • Ad Valorem – there is not a personal property tax; • Financial Reporting – the acquirer is not earnings sensitive but is cash flow “driven”; • Federal Income Taxes – the acquirer wants to optimize accelerated amortization / depreciation of the intangible assets, real property, and tangible personal property; • Fixed Asset Accounting – the acquirer wants to upload the appraisal data from Excel. Now the appraiser performs their “magic” using the following procedures: • Cost segregation techniques are applied to the identification and valuation of land improvements, buildings, structures, and tangible personal property. Meaning, shorter lived assets are identified and valued separately. • The tangible personal property is scheduled and valued such that assets may be easily identified during facility walk throughs, as well as for operational fixed asset accounting purposes. • Production lines and perhaps even certain major machinery may be componentized with values placed upon each component (facilitating disposition / upgrade, etc. treatment for fixed asset accounting). • The PC based software is purchased / used to at least run short and long description fields, multiple books, appropriated dedicated and optional fields, photograph insertion, and line / machine componentization. • Specific intangible assets are valued. • Insurance values for placement is developed with proof of loss readiness being set up through the detailed fixed asset record. • For Fair Value accounting, the external auditors are delighted with the thoughtful and thoroughness of the valuation, with only standard generic questions being asked, easily and well answered, and accepted. • Depending on the plant / process type, tags / numbers are applied by operational personnel for asset identification at a reasonably visible distance (for safety of guest personnel). As a result of this process: • No harm is done to the Ad Valorem tax position, since tangible personal property is not taxed. Note if taxed other steps in the valuation process are required. • Accelerated cost recovery is realized for the buildings / structures and land improvements, as well as the tangible personal property. • No harm is done to earnings, since the acquirer is not earnings sensitive. • There is optimal identification of shorter-lived assets for federal income tax reporting purposes. • Insurance values are developed with the acquirer being ready to prove a loss. • Fixed asset data is uploaded from the appraiser’s Excel file with the optimal fixed asset accounting system run on a PC. The Perfect Appraisal may be completed in certain cash flow driven financial and tax reporting environments. Also, of course the acquirer must appreciate and understand the experience and skill of the appraiser. Lastly, the appraiser must understand the optimal appraisal techniques, but particularly the strategies to apply for the financial report and tax reporting benefit of the acquirer.