FREQUENTLY ASKED QUESTIONS
This criterion identifies someone who regularly receives compensation for business valuations. The SBA identifies the four leading accreditations as ASA, CBA, CVA and ABV.
The SBA also suggests that the party retaining the appraiser should be sure that a distinction is drawn between the experience in valuing small business as opposed to large business, given the different issues involved and skills required. The appraiser’s prospective client should also be confident that the appraiser has the resources, the professional contacts, and expertise at his disposal to create a thorough report.
The appraiser should be sufficiently knowledgeable to be able to specifically identify the ways in which economic factors and market conditions impact the value of the business, and explain the methodology used to arrive at this determination.
In certain instances, such as SBA business appraisals, it may be appropriate for the appraiser to analyze the details of unique contractual terms and conditions. This could provide insight into the differences between an asset sale and a stock sale.