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Market Value - In Place
A professional opinion of the estimated most probable price expressed in terms of currency to be realized for property in an exchange between a willing buyer and a willing seller, with equity to both, neither being under any compulsion to buy or sell, and both parties aware of all relevant facts, as installed for intended utilization, as of the effective date of the appraisal report.

Market Value (Fair Market Value)
The “FAIR MARKET VALUE”, means the value in arm’s-length transactions, consistent with the general market value. ‘General Market value’ means the price that an asset would bring as the result of bona fide bargaining between well-informed buyers and sellers who are not otherwise in a position to generate business for the other party, or the compensation that would be included in a service agreement as the result of bona fide bargaining between well-informed parties to the agreement who are not otherwise in a position to generate business for the other party, on the date of acquisition of the asset or at the time of the service agreement. Usually, the fair market price is the price at which bona fide sales have been consummated for assets of like type, equality, and quantity in a particular market at the time of acquisition, or the compensation that has been included in bona fide service agreements with comparable terms at the time of the agreement, where the price or compensation has not been determined in any manner that takes into account the volume or value of anticipated or actual referrals.

Orderly Liquidation Value
A professional opinion of the estimated most probable price expressed in terms of currency which the subject equipment could typically realize at a privately negotiated sale, properly advertised and professionally managed, by a seller obligated to sell over an extended period of time, usually within six to twelve months, as of the effective date of the appraisal report.  Further the ability of the asset group to draw sufficient prospective buyers to insure competitive offers is considered.  All assets are to be sold on a piecemeal basis 'as is' with the purchasers responsible for the removal of assets at their own risk and expense.  Any deletions or additions to the assets appraised could change the psychological and/or monetary appeal necessary to gain the value indicated.

Forced Liquidation Value
A professional opinion of the estimated most probable price expressed in terms of currency which could typically be realized at a property advertised and conducted public auction sale, held under forced sale conditions and under present day economic trends, as of the effective date of the appraisal report.  Conclusions taken into consideration are physical location, difficulty of removal, physical condition, adaptability, specialization, marketability, overall appearance and psychological appeal.  Further, the ability of the asset group to draw sufficient prospective buyers to insure competitive offers is considered.  All assets are to be sold on a piecemeal basis 'as is' with the purchasers responsible for the removal of assets at their own risk and expense.  Any deletions or additions to the assets appraised could change the psychological and/or monetary appeal necessary to gain the price indicated.

Insurable Cash Value
A professional opinion estimated in terms of money that would be required to duplicate, as nearly as possible, the equipment described in the appraisal report.  This value includes machine cost, freight, rigging, installation, electrical and pneumatic connections, foundation costs and leveling of the equipment.  In cases where individual machines cannot be replaced model for model, a machine of equal capacity and similar age would be substituted.  This value makes no provisions for travel costs, loss of business costs, and applicable taxes.

[1]
The “Fair Market Value” According to Section 1877(h)(3) of the Social Security Act and further defined in the Stark II, Phase III Final Rule (42 CFR Section 411.351), an appropriate premise of value when purchasing medical practices is Fair market Value, as defined below.

 



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