commercial appraisal vs. certified business valuation/review

[Brealmm]

Need help. Have been approached by a business consultant who suggests a "certified business valuation" at a much higher price than a regular appraisal of our business before selling and says it provides much better and more information including future projections. It's hard to find any info on these valuations. Does anyone know the differences between an appraisal and a certified valuation, what the valuation includes that an appraisal doesn't and any other helpful info. Thanks.​

 

[JT1974]

I appraised a commercial property about a year ago where the owner was approached by an outfit like you describe. First, the business owner recieved a bunch of solicitations by "business valuation" experts for very high prices. This went on for about a year on a pretty regular basis. Then a group offered to give him a "free" business valuation (including the commercial real estate and the business operating therein). I'm guessing all of the offers were from the same group of people.

Anyway, the property owner thought he was getting a great deal as these nice people were providing him a "free" service. They gave him their valuation and then told him they knew of a few potential buyers who might just give him that much for the property. He took the bait and was swindled out of his business and real estate at a price substantially below fair market value.

The lesson to be learned is to be VERY VERY VERY careful of anyone who "approaches" you offering business valuation services.......especially like what you describe.

If you are interested in the value of your assets, make sure YOU are the one contacting a valuation professional....i.e CPA, real estate appraiser, etc.

 

[Fred]

Does anyone know the differences between an appraisal and a certified valuation,

Based on your post, I'd say there is a difference in price. Beyond that, they are just words. I'd have to see the work to tell the difference.

 

[Truett Neathery]

Business appraisal

Real estate appraisers appraise real estate. Business appraisers appraise businesses. Machinery and equipment appraisers appraise machinery and equipment. Few appraisers can appraise any and everything.
TN

 

[Terrel L. Shields]

Real estate appraisers appraise real estate. Business appraisers appraise businesses.

We have some CPA's who are also certified General appraisers. That's the ones to hunt for. Unsolicited offers for appraisals should be viewed with deep suspecion. A second opinion wouldn't be a bad idea either.

 

[Brealmm]

Thank you to all who responded to our question. With a successful strip with convenience store, gas station, and a space we rent out, it sounds like if we couldn't find a certified General appraiser, we might need to have the business appraised separately from the real estate instead of hiring a real estate broker and commercial appraiser. Since we've not sold before, any advice is welcome.

 

[Dave Carson]

Real estate appraisers appraise real estate. Business appraisers appraise businesses. Machinery and equipment appraisers appraise machinery and equipment. Few appraisers can appraise any and everything.
TN

Aside from the CPA's who are also Certified appraisers
as Terrel stated, your statement rings with a resounding
clear and accurate message.

Leave the Business Valuation to those who are qualified. : )

Excellent advice Truett.