Why Professional Credentials Matter

When selecting a business appraiser, professional credentials should be your first consideration. Recognized designations indicate that the appraiser has met rigorous education, experience, and ethical standards.

• ASA (American Society of Appraisers) — Members must demonstrate expertise and adhere to USPAP standards.
• CVA (Certified Valuation Analyst) — Awarded by NACVA, requiring comprehensive training and examination.
• ABV (Accredited in Business Valuation) — An AICPA credential for CPAs specializing in valuation.

Experience and Industry Specialization

Business valuation is not one-size-fits-all. Different industries have unique financial metrics, growth patterns, and risk profiles. Your appraiser should have substantial experience in your specific sector.

• Ask about years of experience specifically in your industry.
• Request case studies or references from similar valuations.
• Verify familiarity with your industry’s standard valuation methods and multiples.
• Ensure they understand your market and geographic region.

Independence and Objectivity

A credible business appraisal requires complete independence from any party with a financial interest in the outcome. Independence ensures the valuation reflects the true economic reality of your business.

• Verify the appraiser has no relationship with any transaction party.
• Confirm no conflicts of interest from other services.
• Hourly rates or fixed fees are preferred over contingency arrangements.
• Review their conflict of interest policies and disclosures.

Critical Questions to Ask Before Hiring

Before engaging an appraiser, conduct a thorough vetting process:

• What professional certifications and licenses do you hold?
• How many years of experience do you have in business valuation?
• Can you provide references from clients in my industry?
• Will you be conducting the appraisal personally, or delegating?
• What is your fee structure and estimated timeline?
• How will you handle confidential information?

Red Flags to Watch For

• Only uses one valuation method without justification.
• Pressure to reach a predetermined conclusion.
• Lack of credentials or reluctance to provide references.
• Contingency-based fees tied to the final valuation amount.
• Minimal due diligence or superficial financial analysis.
• No site visits or management interviews.

Partner with Corporate Valuations Inc.

Our team of ASA, CVA, and ABV credentialed professionals brings decades of industry expertise to every engagement.