Why hire a business valuation expert?
Some of the most common reasons to hire a certified business appraiser included in the BVExpert Directory include:
- The need for convincing (and Daubert-ready) litigation support or expert witness services in tax, trust & estate, matrimonial, damages, shareholder dispute, securities, or other area of law when the value of a privately held business is in dispute
- The annual requirement to value business assets transferred to family members
- The need to create a settlement agreement in a divorce proceeding
- The desire to create partnership or buy-sell agreements
- The quarterly or annual requirement to value business assets for stock option plans
- The desire to maximize the value of a business, whether in anticipation of a sale, or as part of a forward-looking strategic plan
- The requirements to report the value of business assets according to the financial reporting standards promulgated by FASB, the SEC, and other regulatory bodies
- The need to document early-stage intellectual property, goodwill, or other intangibles to achieve financing objectives
Some business owners attempt to meet these requirements using other professionals—CPAs, business brokers, or consultants—but the trained experts listed in the BVExpert Directory offer better results, and far less risk that your valuation will be overturned by other parties—or in court.
Each certified appraiser included in this Directory offers:
- Experience - Most certifications require five years of full-time equivalent experience in business valuation. Business appraisers have experience in appraising a wide variety of companies-public and closely held, large and small-and have experience in appraising a wide variety of business intangible assets.
- Education - To get their designations, candidates for all business valuation certifications must complete a core series of courses and tests in business valuation. Continuing education is also required.
- Standards - All business appraisers are required to adhere to clearly defined standards-most commonly “USPAP” or some version of the AICPA’s “SSVS-1.” If your business valuation is challenged, it’s almost certain that the first question will be whether the appraisal complies with one of these standards, and, if not, it’s unlikely that lawyers or other users of your valuation report or testimony will accept or respect any of your conclusions.
- Peer review - All certified appraisers must have their valuation reports peer reviewed to achieve certification. The process rarely stops at that point, as appraisers often face one another on opposing sides of conflicts. Certified appraisers have had their work tested on a daily basis, therefore, by lawyers, judges, business owners, investors and others for who the results of an appraisal can be one of the most important business events of their careers.
- Independent and impartial ethics - all certified business valuators must maintain ethical standards from their certifying associations. At the center of these ethical standards is the professional demand for objectivity. Business appraisers are not “hired guns,” and you can’t pay them to get the result you want. They are trained to look beyond emotion, irrational optimism or other issues to render the most impartial valuation conclusion they can.
There are a number of valuation methods that business appraisers have at their disposal, and choosing the correct combination of methods is both a science and an art. At a minimum, business appraisers will consider methods based on:
- assets (with a particular focus on intangibles and liquidation values)
- historical and future earnings (often after adjusting management projections)
- market comparables (both public market pricing and private company transactions)
- the impact of controlling and minority ownership on value
- industry analyses (often at the local or regional level)
All of the professional appraisers in the BVExpert Directory have experience in evaluating a wide variety of businesses. You can review each expert’s specific industry experience and search for the one with the most experience in your business.
Contact: Martin Thomas
Business Valuation Resources, LLC
1000 SW Broadway, Suite 1200
Portland, OR 97205