What is a business appraisal?
Simply put, a business appraisal is an opinion of the fair market value of a business (or portion of a business) Fair market value is the price at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arms length in an open and unrestricted market, neither of whom are under any compulsion to buy or sell, with both having reasonable knowledge of relevant facts
A business appraisal is a professional analysis of the worth of a business or business interest based on the consideration of all of the relevant facts. Each appraisal is as unique as the business being appraised. The appraisal process involves extensive research and analysis tailored to your business and the purpose of your appraisal. The complexity of business today makes it important for a business owner to know the fair market value of his/her business at different stages in its life. Appraisals play a critical part in all strategic transactions. The following are some of the reasons a business owner may need to know the value of his/her business or business interest: Adopting or maintaining an employee stock ownership plan; • Merging, acquiring, or divesting of an ownership interest; Selling a business; • Granting minority stock ownership; • Planning/reporting for estate and gift taxes including family limited partnerships; • Creating or revising buy/sell agreements; • Settling a
A business appraisal is an opinion of the fair market value of a business (or portion of a business). Fair market value is the price at which a business would change hands between a willing buyer and a willing seller, neither of whom are under any compulsion to buy or sell, with both having reasonable knowledge of relevant facts.
A business appraisal is much more than just a report. Our process assesses the value of a company today, but with respect to how it is growing and changing each day. Looking at assets, liabilities, receivables, inventory, investments, cash flow and market trends through a financial microscope renders a very educated opinion of a fair value (or price) for a company in today’s market.
