More than ever, business owners, managers and fiduciaries are recognizing the need for competent valuations of the business enterprise. The increased perception of the complexities of business valuation is rendering the old seat-of-the-pants approaches to business valuation obsolete.
When a business valuation is necessary it is vital to have a thoroughly documented appraisal report prepared by a competent, professionally qualified appraiser. Complex laws and court interpretations of the laws require greater attention to fiduciary responsibilities by business professionals and especially where potential litigation may be involved.
There are many diverse reasons for a business appraisal. The following are those most frequently encountered: litigation or arbitration; gift, estate and inheritance taxes; bankruptcy and reorganization; acquisition and sales, e.g., partnerships or corporate dissolution, employee stock ownership plans (ESOPs); planning, e.g., estate planning obtaining financing; and allocation of value.
A qualified Business Valuer should have a designation from the American Society of Appraisers; should follow the Uniform Standards of Professional Appraisal Practice (USPAP); should have at least 20 hours of continuing education each year; and should subscribe to, and be bound by, stringent professional ethics. Learn more about our appraisers’ professional designations and the designating organizations here.