Frequently Asked Questions

Valuing a privately held business requires experience and careful analysis of the company’s risks and value drivers.  A business valuation generally takes four to six weeks, depending on the size and complexity of the engagement. 

The process begins with reviewing key financial and legal documents to identify trends and issues requiring further analysis.  The appraiser then interviews the business owner and/or management team to better understand the company, its operations, and historical and projected financial performance. Using this information, the appraiser prepares a written valuation report detailing the methodologies, analyses, and conclusions supporting the final opinion of value.

The length of an appraisal depends on the complexity of the business being appraised. However, most appraisals can be completed within four to six weeks

Our fee for an appraisal varies depending on the purpose and the scope of work required. Please contact us for a quote.

The benefits of a business valuation depend on its purpose—whether resolving a dispute, measuring growth in company value, or preparing for a future sale.

A valuation helps owners understand the company’s key value drivers and risk factors, allowing them to focus on areas that can increase value. It can also identify operational or financial issues that, when addressed, may significantly improve the company’s overall worth.

Ultimately, reducing risk is one of the most effective ways to increase business value.

Perhaps, but that is akin to a residential real estate appraiser driving by a house to determine its value, rather than looking inside. Two identical properties could have materially different values if one is in relatively poor condition on the inside and the other has undergone several renovations and additions that are not visible from the street.

The business valuation process is far more sensitive and complex than just plugging numbers into a computer software package or spreadsheet.  The financial figures may need to be normalized for certain factors such as excess compensation or fair market rent. Additionally, the numbers alone may not necessarily reflect certain risks that could impact value.

American Business Appraisers has performed numerous estate and gift tax services to satisfy IRS stock valuation requirements. As your certified appraiser we will perform business valuation services with the goal of developing and supporting the appropriate level of discount metrics and help minimize or eliminate problems with the IRS.

We have extensive experience with marital dissolutions and can work with your legal counsel in determining the value of your business or business interest.  We have worked in situations involving amicable divorce, mediated settlements and formal court proceedings.