How should a business appraiser be selected?
A business appraiser should be selected based on credentials and experience. The small list of top-level credentials includes ASA and CFA. Top credentials should be accompanied by experience in many types of businesses. Experience cannot be gained by taking courses and passing written exams. Knowledge that comes from appraising many types of businesses in different situations provides a business appraiser with the ability to cut through unnecessary clutter and focus on issues that matter most. An industry expert is not necessarily a business valuation expert. Appraising business interests is a complex profession that requires knowledge in a variety of financial and market areas. An industry specialist may not have the necessary range of knowledge to complete a sustainable business valuation.
