Business valuation professionals, also called Business Appraisers, provide independent, unbiased opinions of value for businesses and business interests of all sizes, from small proprietorships, such as medical practices, to large multinational corporations.They also value specific intangible business assets such as patents, trademarks, employment agreements, copyrights, securities and, of course, personal and practice goodwill. They value specific financial instruments such as equity securities, partnership interests, notes, mortgages and options of all types issued by private enterprises. These professional appraisers prepare merger and acquisition studies, employee stock ownership plan feasibility analyses and other similar financial studies. They may be involved in appraisals performed for estate and gift tax returns, income tax returns, buy-sell agreements, securities litigation, equitable distribution in matrimonial matters and many other purposes. They also appear as expert witness in lawsuits.
In order to provide that independent opinion of value, the BV appraiser can not be associated with or dependent upon any of the parties to the transaction or entity.
In order to guard against even the appearance of a bias, all appraisers who are members of professional associations must follow USPAP, unless the client specifically requests a non-USPAP appraisal. USPAP stands for the Uniform Standards of Professional Appraisal Practice, and is promulgated by The Appraisal Foundation, the organization recognized by Congress as the source of appraisal standards and appraiser qualifications. It is generally updated annually after a process designed to sollicit and include comments from the public. Click here to read the table of contents of the 2008-2009 USPAP.
Standards 9 and 10 specifically deal with Business Valuation. USPAP includes many dos and donts. In particular, appraisers may not provide services where the fee is determined as a percentage of the value, or where the fee is contingent upon the value, i.e. "I will pay you only if the value is what I think it should be." We, of course, can not accept such assignments.
Our fees are competitive in the industry. We set our fees in such a way as to compensate us for the time we actually work on your project. If you need a full, USPAP compliant appraisal report with our ASA certification, the amount of time necessary to complete should be in the $7,000-$8,000 range. In some cases, a report can be prepared which uses the exception or departure provisions of USPAP, particularly when the client is familiar with the business and no controversy is anticipated; such limited scope report can result in time and thus in fee savings. Remember that we get paid essentially by the hour. If controversy is involved, a full report will probably be necessary. A report on the valuation of FLP interests, under certain circumstances, will cost somewhat less than the above range; in some cases more depending on the facts.
Many in the investment banking business can reasonably estimate the value of a private firm; when the parties however need to have an independent valuation based on a specific standard, and particularly a valuation independent of all parties including the broker, it's time to call a business appraiser.
Business appraisers are not advocates of a particular client, as attorneys are. We call it like it is, based on the facts. If you wish to discuss this and other issues, please call or e-mail. (Back to The Main Page's Directory of Services)
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368 Heights Road #2392
Darien, CT 06820
Voice: (203) 325-2703
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Revised -- 11/26/09