an integral part of the first stage of the selling process, valuing
a company is one of the most important issues. It is highly recommended
that sellers obtain a third-party business appraisal from a well-respected
business appraisal company. A business broker / intermediary
should not be the one to appraise the company and they are generally
not sufficiently qualified to do so. Even if they feel that they
are qualified, a broker's own business appraisal can create doubt
in a buyer's mind and, in many cases, can create potential legal
liability. However, the most important issue to understand is
that regarding credibility and believability with potential buyers
and believability with buyers is an issue when the seller's broker
is the one who has appraised the company. They sometimes see
the interests of the seller being placed in front of their own.
Often, third-party business appraisal companies reduce or eliminate
and successful professionals in the business brokerage industry
know this is generally the key to maximizing the selling price
of a company, eliminating the largest portion of frustration
and disappointment, and saving all parties involved a great deal
of generally expensive time. While most sellers believe that
their company is worth more than what actual market value is,
there are many instances in which sellers receive less for their
companies than they should. An appraisal from a well-respected,
third-party business appraisal company creates credibility and
believability with buyers and lenders while at the same protecting
and maintaining the seller's interest in his/her company.
the seller waits until the buyer appraises the company, then
it is the buyer's best interest to obtain an appraisal on the
company that is as low as possible. Likewise, waiting for the
lender to require an appraisal will only delay the entire process.
Therefore, since an appraisal will probably be performed sometime
during the selling process, it is in the Sellers best interest
to obtain a business appraisal in the beginning stages, not after
the company is marketed to buyers. Additionally, it is critical
that sellers realize and understand that most lenders and federal
loan guarantors, especially the SBA, require a third-party appraisal.
Business Brokers uses what many believe to be some of the most
respected business appraisal firms on both a local as well as
national basis. We have established relationships and a history
of doing business with these business appraisal firms and have
several optional plans for our clients who are considering obtaining
a business appraisal. Business Appraisals range in price from
$2,500 to over $20,000. However, they generally average $2,500
to around $3,700 depending on many factors.
invite you to contact us for more
information regarding business appraisals.