How do you Pick a Business Valuator for Your Situation?
Table of contents
What is an accredited business valuation analyst?
How to Ensure Your Business Valuation Meets Your Goals and Cost Target
Seeking a business valuation specialist to determine your business’s market value is beneficial for various reasons. You have many choices in financial reporting valuation services from professional valuation specialists.
This is regardless of whether you plan to sell your company or transfer it to your family. Knowing the true value of your business helps ensure that you, as a business owner, have the confidence needed to make the most appropriate valuation decision for your company and business portfolio.
Who conducts a business valuation?
These services are conducted by accredited business valuation professionals qualified to determine a company’s or business’s economic value.
A certified business valuation by an accredited BA FL|GA|HI team member requires strategic and in-depth analysis to estimate a company’s worth accurately. The process is complex and involves various considerations, calculations, and studies.
Although working with business valuation professionals often takes several weeks, the comprehensive valuation report produced will make the wait worthwhile.
Regardless of your reason for obtaining a business valuation, it would be best to prioritize hiring an appraiser best suited to your valuation needs. The appraiser’s judgment and findings may dramatically impact your business and its future.
How do you select the best appraiser?
Consider a few things before moving forward with any business appraiser or business valuation service.
First, you should understand the true purpose of your business appraisal and share that insight with your business valuation professional.
Business Owners need a certified business valuation report for the following:
- Private Equity
- Raising Capital
- Exit Planning
- Litigation Matters and Legal Proceedings
- Estate and Gift Tax Planning
- Divorce Proceedings
- Corporate Finance
- Tax Compliance
- Mergers and Acquisitions
- Purchase Price Allocation
- Stock Options
- Goodwill Impairment and Economic Damages
For example, are you seeking a valuation to raise equity or to sell your business to your children? The business appraisal aims to provide your business appraisers with needed insight as they navigate the valuation process on your behalf.
Additionally, you should be sure to look for an appraiser with experience in your industry if you desire to have an appraisal that is as accurate as possible. You will want to ensure the business valuation experts have valuation experience in your industry. When you hire a business appraiser, find out if they’ve previously handled businesses like yours.
How much does it cost to hire a professional business appraiser?
The cost of a certified business valuation by an accredited Business Appraisal FL|GA|HI team member varies based on your goals and how in-depth the appraiser must go to conduct the valuation. This is why the cost of the service ranges according to the size of the business.
Although it might be tempting to use the cheapest service, you should strive to hire a business appraiser who best understands your market and needs. Business Valuation services from a valuation specialist who understands your industry will make you money in the long run.
Does my appraiser need to meet specific professional standards?
Before hiring a business valuation company, ensure they meet professional standards. The appropriate standards may vary depending on the specific reason you require the appraisal in the first place.
For example, if you’re getting a business appraisal for tax purposes. In that case, you will want an appraiser who is credentialed in valuations that conform to the Internal Revenue Service (IRS), American Institute of Certified Public Accountants (AICPA), and the National Association of Certified Valuation Analysts (NACVA) standards.
Everyone at Business Appraisal FL|GA|HI is a certified valuation analyst (CVA). We perform business valuations for SBA lenders, IRS tax purposes, and financial reporting.
Who else should you work with for your business valuation?
Working with an established appraisal company, like BA FL|GA|HI, ensures that you consult various individuals who will help determine your business’ worth.
Your CPA, for example, is an asset to the team of individuals appraising your company. This is because a CPA can understand the tax implications of your financial records better than the average business appraiser.
Diverse experiences and perspectives can give you a complete picture of your business before deciding on the next step in the business valuation process.
Please read how to prepare for your business valuation.
Business Valuation Professional Conclusion:
When searching among the best business valuation companies, there are many factors that you will need to consider to ensure you receive an accurate valuation. These factors include industry experience, certifications, credentials, and local and industry market familiarity. Considering these factors, you can choose the best business appraiser.
BA FL|GA|HI has over twenty years of experience evaluating businesses in Florida, Georgia, Hawaii, Tennessee, and other states. Our experts can provide honest, confidential appraisals regardless of your industry. Reach out today to start understanding your business’ true economic worth.