Why Hire a Specialist?
The goal of a business appraisal can be stated very simply: setting a dollar figure on the value of a business. Getting to that final step is, however, anything but simple.
Business valuations involve a complex series of investigations, including extensive research of your company’s financial operations, prevailing economic and industry conditions, and a careful analysis of the information obtained. The professional judgment provided by the consulting appraiser allows for a determination of which valuation approaches hold the greatest merit, which questions to ask to get the whole story, and which answers carry the most relevant implications for value.
Because the appraiser’s judgment often has a major impact on the valuation conclusion, business valuation is best conducted by an experienced specialist. The specialist is continuously exposed to a broad spectrum of industries, company sizes and states of financial health, routinely taking such factors into account in the valuation process. Specialists are also able to keep abreast of recent court rulings, current requirements and practices of the Internal Revenue Service and other agencies; and the methodology, format and language that each agency is accustomed to.
The depth of experience that a specialist brings can be particularly important if litigation is involved. The valuation conclusion of the opposing sides may sometimes be very different, with large sums of money at stake based on the adequacy of the appraiser’s qualifications and the thoroughness of the due diligence and analysis.
Specialists provide more accurate and more cost-effective appraisals than do expansive, broadly-focused firms. The need for a professional business appraisal may arise only once in the lifetime of a business, and when it does, the reason for it and the conclusion of it may be pivotal.
It’s worth having it done right. It’s worth hiring a specialist.