A useful litmus test is to use the same criteria used by the SBA (Small Business Administration) to designate what it refers to as a “qualified source.”
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.