Business Appraisal or Transaction Value

There are a variety of different options for business owners to choose from if they are in need of assessing the value of their company.  Specifically, a quick web search will point toward a variety of accounting firms and appraisal firms to choose from.  One common oversite in choosing a provider, however, is an assessment whether the professional or firm hired has a successful track record of closing transactions.   

For example, when I think of the word appraisal, the first thing that comes to mind is the appraised value of a wedding ring.  Let’s face it, it is a pretty rare occurrence when a wedding ring actually sells in the open marketplace for its appraised value.  As someone who prides himself in closing transactions, I typically put a lot more emphasis on the price and terms at which my experience tells me the sale of a business will close, versus what an appraiser has told me it is theoretically worth.

Deciding it is time to exit the ownership of a business can be a very emotionally challenging time.  When you reach that point, I strongly suggest you hire someone who you can trust to realistically inform your decisions and guide you to the closing table if that is the end goal.