For companies navigating asset sales, collateralized lending, or tax compliance, a defensible valuation is a necessity. Senior Vice President, Kent Amarante, ASA, MRICS, shares insight on M&E valuation in the ASA’s MTS Journal. “Premise of Value in M&E Appraisals: Installed or Removed” explores how two commonly applied premises of value can produce materially different outcomes depending on the asset and its use case.

Kent notes, “Aligning purpose, premise, and methodology is essential to developing accurate, defensible, and decision-ready value conclusions.”

Highlights include:

• Why installation costs can significantly increase FMV when assets are in place and operational.
• How removal costs can sharply reduce expected realizable value.
• Real-world examples where FMV Removed approaches—or even falls below—zero in high-cost environments.

A worthwhile read for anyone relying on M&E appraisals for decision-making.