How Do you - Appraise the Value of the Business

It is only after you have had full discussions with the business owner, completed the listing form and profile questionnaire, inspected the business and researched other factors such as location, local regulations, lease condition etc that you are able to sensibly appraise the business to arrive at a recommended price.

a) Appraisal and Valuation
There is a big difference between an “appraisal” and a “valuation”. An appraisal is an opinion only of a future sale price or a market value at that particular time. It is not a professional valuation. If a business owner requires a valuation, this can be done through a professional Valuer and the business owner pays for that.

Never refer to your appraisal as a valuation or you could run into “hot water” if it is only an appraisal.

Appraisal of a business must be carried out methodically using all the information compiled. Each appraisal must be supported by reasons for each conclusion. Those conclusions may be challenged so ensure that everything is adequately recorded and filed.  Do the appraisal well. It may be critical to the success or otherwise of the sale.