Our multi-dimensional, multi-disciplined surveyors also provide a beneficial resource in the delivery of our appraisal services. Because of the depth of their knowledge and experience, our surveyors also possess the skills and expertise necessary to inspect and make condition and maintenance judgments about inland shallow draft, great lakes and ocean-classed vessels.

Demand for the appraisal services of MMSI typically comes from:

• Banks and finance / equipment leasing companies for leasing arrangements and asset based lending
• Insurance companies in setting appropriate limits of insurance, determining value following a loss, & establishing limitations of liability
• Tax purposes including estate taxes and corporate tax filings.
• Mergers and acquisitions for the allocation of purchase price.

When MMSI conducts appraisals, we do so in compliance with the Uniform Standards of Professional Appraisal Practice.

The values presented in our appraisals are based on three accepted approaches to valuation: the cost approach, the sales comparison approach and the income approach.

• The cost approach is based on the principle that the value of the vessel is significantly related to its physical characteristics, and that a prudent buyer will not pay more for an asset than the cost of acquiring a substitute property of equivalent utility. The replacement cost of the asset is adjusted for depreciation caused by physical deterioration, and functional obsolescence.
• The sales comparison approach estimates value through the analysis of recent sales or offering prices of property similar to subject property. If the comparables are not exactly like the asset being appraised, adjustments are made to the selling prices of the comparables to equate them to the characteristics of the asset being appraised.
• The income approach estimates value by calculating the present value of the future economic benefits of owning the asset.

The value estimates provided in our appraisal reports are a reconciliation of these approaches. While we consider all approaches to valuation, we only use those appropriate for an individual assignment.

MMSI has provided general condition surveys on older military sealift command tank ships, integrated tug barge units, Great Lakes class vessels, coastwise passenger vessels, inland passenger vessels, container ships/multi-purpose vessels and ocean cruise vessels. Additionally, we have conducted fleet and terminal evaluations, loss control activities and/or risk analyses in connection with virtually all of the major inland river transportation ports.

Since the appraisal of marine assets is a specialized business, our appraisal and research personnel work closely with our surveyors to manage the implementation of policies and procedures relating to this area of our business. In doing so, they ensure all of our marine equipment appraisals comply with the Uniform Standards of Professional Appraisal Practice.

In order to better serve the needs of our clients, MMSI now maintains multiple databases for shallow draft, inland and coastal vessels as well as ocean class vessels owned and/or operated domestically and internationally.