Monday, March 9, 2015

The Role Of Business Appraisers

If you are looking to buy or sell a business in the near future then you may want to consult an independent source for an accurate valuation of the business. No matter whether you are buying or selling, you should get your own valuation so you know what sort of figure you should expect to pay or receive. This is where business appraisers come in.

The role of business appraisers in the buying and selling of a business is to establish the value of the business in question, put in the simplest possible terms. Of course, there are a lot of different aspects to the role of business appraisers, but that is the general function. As such, they are vital if you are a budding entrepreneur and want to expand your business portfolio or wish to get on that ladder in the near future.

What Do Business Appraisers Do?
The role of business appraisers is essentially to go into a business and value the total property and assets to be sold. This includes assessing the books to determine the profit margin as of the present day and the predicted levels that may occur in the future, the real estate value of the property, the level of the total business assets and the value of any existing contracts or long term commitments that the business has.

For any sale of a business to occur, a full and independent assessment of the business’s value must be completed and so there is also a legal element to the role of business appraisers. They are obliged to document everything, examine the statements that are available and record their findings. They have to be impartial and favor neither the business nor the client. As they may have to provide a figure for the value of the business to the IRS and other legal and governmental bodies, it has to be true and completely justified.

Do You Need Business Appraisers?
Your need for business appraiser revolves around the nature of the business you intend to buy. If you’re a budding entrepreneur and are starting with a small business then you might only need a business consultant to evaluate the business. A small business is qualified as such if it has very few assets, little or no real estate property and few ongoing commitments. Your lawyer or accountant might be able to advise you as to whether your business or the one for sale falls into this category.

However, any business that does have assets, real estate, ongoing contracts and other similar viable property does need to be fully apprised by a professional. Of course, no matter what the size of the business is if you feel the need then you should hire business appraisers regardless. You will know the full value of the business and everything that is to be sold with it, and will also have the peace of mind that the valuation cannot easily be contested should an offer be placed at a later date.

As you can see, the role of business appraisers is vital if you want to get the optimum price for your business or avoid paying too much for one if you are buying. They can give you peace of mind no matter what industry you want to head into in the future.


For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com or my personal website at www.BuySellFLbiz.com.

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