Business Valuation (BV) appraisers value businesses and business interests of all sizes, from small proprietorships, such as medical practices, to large multinational corporations. They also value specific intangible business assets such as patents, trademarks, employment agreements, copyrights, securities, and goodwill.
Many ASA-accredited BV appraisers have degrees and/or designations in accounting, financial planning, and the law. When appraising a business, they often work in cooperation with Machinery & Technical and Real Estate appraisers.
Business valuations are important not only when delivered but also as historical records. As such, the reports must be thorough and complete to stand the test of time. Some of the major areas of business that require professional ASA opinions of value include:
- Financial Reporting – Fair value reporting standards and applications continue to evolve. Valuations are increasingly scrutinized by shareholders, auditors, and regulatory bodies. Today, BV appraisers are often called on to provide independent fair valuations in support of audited financial statements.
- Internal Revenue Service Reporting – In determining the fair market value of an asset for tax purposes, it is increasingly important that the BV appraiser be familiar with the relevant IRS regulations and with the related Tax Court cases.
- Litigation Support – BV Professionals provide expert consulting services and testimony in Federal and State Courts, U.S. Tax Court, and at mediation and arbitration hearings. Their opinions are guided by many years of capital market experience across a wide array of industries and must reflect sound economic models in order to arrive at distinct, credible conclusions.
- Consulting – This includes a variety of advisory services such as Bankruptcy and Reorganization Services, Fiduciary Advisory Services, Litigation Support, Purchaser Representative, and Corporate Advisory assignments.
BV appraisers prepare merger and acquisition studies, employee stock ownership plan valuations, and similar financial studies. USPAP-compliant BV appraisals are performed for estate and gift tax returns, buy-sell agreements, securities litigation, matrimonial matters, and many other purposes.