choose the right appraiser

Whether on the buying or selling end a business, you need to know its worth. Your best option for an accurate valuation is to enlist the services of a business appraiser, as it is a highly specialized skill.

What to Look For

Business appraisers come from a wide range of backgrounds. The first thing you will notice when looking at a list of business appraisers is that they all have initials after their names. These are called professional designations, and they indicate the level of education and experience an appraiser has.

Sure, some may claim to be business appraisers, but only accredited business appraisers have the necessary training and expertise to provide an accurate valuation.

The most prestigious designations in the business industry require more training and experience:

CBA Certified Business Appraiser Institute of Business Appraisers (IBA)
ASA Accredited Senior Appraiser American Society of Appraisers (ASA)

Other professional designations you will encounter include:

CVA Certified Valuation Analyst National Association of Certified Valuation Analysts (NACVA)
CPA/ABV Certified Public Accountant Accredited in Business Valuation American Institute of Certified Public Accountants (AICPA)

While experience levels vary, a professional with any of these designations has received the necessary training and has expertise in the field of business appraisals. Be sure to take the time to interview several candidates to ask them about their credentials, experience in the field and estimated costs. When you have narrowed it down to just a few finalists, ask for references.

How Much Will It Cost?

The cost of your appraisal will depend on the level of service being provided by the business appraiser, and the level of service you need. A written, formal valuation can cost anywhere from $5,000 to over $20,000, depending on the circumstances.

When meeting with your advisor get a cost estimate for the type of appraisal you are looking for so you don’t find yourself on the higher end without warning. Also, don’t agree to any fee without checking around first to make sure what you are being charged is fair.