Frequently Asked Questions
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A: Absolutely! We are experienced in reviewing the work of other appraisers or (gasp!) business brokers to determine if the value is within an acceptable range. We can also help you think through some of the other financial issues of purchasing a business, such as how to finance the purchase and calculate the total expected rate of return of your investment (i.e. we'll help you make sure that you're not just buying yourself a low-paying job).
Q: How long does it take to complete an appraisal? A: Well, it depends. From the time that we receive ALL of the information that we need from the appraisee, it can take between two and six weeks to complete the assignment. It depends on what type of appraisal is ordered, the complexity of the business' operations, our previous experience with other businesses in the same industry, the availability of comparable transaction data, the length of our waiting list, and a number of other factors. We always provide an estimate of cost and turnaround time in advance of accepting an engagement.
Q: What does an appraisal cost? A: Well, it depends. The total cost of the appraisal is dependent upon what type of appraisal is ordered, the complexity of the business' operations, our previous experience with other businesses in the same industry, the availability of comparable transaction data, and a number of other factors. Appraisals to be used in litigation tend to be more expensive than those used for other purposes, because of the level of detail required. We generally quote our appraisals on a flat-fee basis, and will provide you with a no-obligation estimate prior to beginning any work.
Q: What information do you need to appraise the value of my business? A: We ask for LOTS of information in order to make an accurate estimate of the value of your business. Expect to provide financial statements and other financial information, operations information, legal documents and industry data, as well as a detailed questionnaire and on-site interview with key management and staff.
Q: Someone wants to buy in/out of my business. Can you value a partial interest in my business? A: Yes, we can even value individual shares if you like. We recognize discounts for lack of marketability, as well as premiums and discounts for majority and minority stakes, respectively. Please have your attorney contact us to discuss.
Q: Can you represent me to potential buyers? I want to sell my business. A: We do not broker business purchase or sale transactions, but we can direct you to someone that does. We make every effort to avoid conflicts of interest and to maintain the "independent third party" status necessary to provide accurate appraisals.
Q: There is upcoming legal action that involves my business. Can you act as an expert witness? A: We can certainly defend our valuations in court. For other needs, we will advise you if the topic of the legal action is outside of our areas of expertise.