As a business owner, sooner or later you will be searching the web and asking your CPA or Banker or Attorney for a referral of someone who can perform a Business Appraisal for you.  Congratulations, you have landed on the answer to your search.  There are several elements to a Business Appraisal or a Business Valuation.

The Valuation in general takes a holistic view of the business.  It includes a multitude of financial factors as well as the value of the real estate, if any and other tangible assets.  The Appraisal is primarily concerned with the assets only.

For example, A Business Appraisal for a Trucking company would appraise the value of all the trucks, trailers and equipment belonging to the company.  It might be limited to these, or include all the other assets, such as office furniture, computers, software, tools, parts and “stuff”   A Trucking company with 3/4 million dollars of trucks might be using that primarily as leverage or collateral for a loan to buy more trucks.  That means a certified appraisal on the existing trucks.  Nothing short of that will satisfy the Bank.

But suppose you own that company and want to sell it to another trucking company.  The other company probably only wants to offer the depreciated value of the trucks.  You, as the owner, however, want credit for the customers and accounts and your history and bright future!  That is called “Goodwill”.  This is where a Business Valuation come in.  Using the Appraisal of the physical assets as starting point the Valuation them takes all these other financial and intangible aspects into cdnsideration.

What is important is that the Business Valuation and the Business Appraisal be a Certified Business Valuation or Business Appraisal.

There was a time when the opinion of an industry representative might have sufficed.  But that day is no longer.  It won’t be accepted by the banker or the SBA unless it is certified.  This of course speaks to the education and experience of the Appraiser.  To become certified as an Appraiser is no small task.  Even more difficult is finding the direct experience that you feel relates to your project.

No one wants to be the Appraiser’s “first”.  That is like the story of the anxious man in the hospital laying on the operating table who said, “I’m a little nervous. It’s my first time in surgery.”  And the Surgeon replies, “I know how you feel.  It’s  first time too!”

I’m sure you would fly out of there as fast as I would.   Likewise for experience in Business Valuations and Appraisals.  You want someone who has “done it all”.  That is what you get with Pro Biz Appraisal.  Experience and  success go together.  You want both.