Business Valuations and Appraisals
Over 80% of businesses available on the market today will never sell! The key reasons are over-pricing and unrealistic terms. Before going to market, it is a MUST that the business owner understands and accepts the role of Fair Market Value in setting a realistic offering price and terms.
In most circumstances, an inexpensive, informal Broker Opinion of Value (BOV) is all that is needed. More rigorous, formal appraisals will be necessary for IRS, Divorce, Buy/Sell agreements and other legal reasons. All valuations, including Machinery & Equipment work, are performed by qualified professional appraisers experienced in all matters of business valuation and business transfers, and in compliance with Uniform Standards of Professional Appraisal Practice (USPAP).
The results are highly reliable, value-priced appraisals for every need.
Reasons for performing business appraisals:
Types of Appraisals:
Broker Opinion of Value
Informal report designed to give a guideline or benchmark value to provide a reasonable basis for estimating the likely Selling/Listing Price of a business. Approximate Length: 25 – 30 pages. Takes about 1 week to complete after all documents are received.
Calculation of Value Report
Informal, since the appraiser doesn’t come to a “conclusion of value”, but simply a “calculation of value” based on a limited amount of research and due diligence. However, it generally includes the same valuation procedures/methods that would be used in a formal appraisal. Valuable in setting a market price for a business. Approximate Length: 30 – 40 pages. Takes about 2 weeks to complete after all documents and the detailed questionnaire are received.
Business Valuation Report
Formal report that is used primarily for non-litigation situations. Approximate length: 40 - 60 pages. Takes about 3 weeks to complete after all documents and the detailed questionnaire are received by the appraisers.
Machinery & Equipment Appraisal
Certified valuation report performed in accordance with USPAP standards. Takes about 1 week to complete after inspection and documents are received.