The essence of a business appraisal is a supportable opinion.
It is the business appraiser’s responsibility to gather data, analyze the data, and draw supportable conclusions. These conclusions will be based on the informed judgment of the appraiser. Critical elements of the report such as adjustments to financial statements, the selected capitalization or discount rates, and weightings must be supported and documented.
The standard of value, the type of report, and the valuation approaches and methods utilized should be appropriate to the assignment and the materials included in the report should be relevant, clear, and cogent. All procedures and conclusions used by the appraiser must be presented in sufficient detail in the report to permit the reader to replicate the appraisal process.
An appraisal report is considered a “Certified Appraisal Report” when it contains a Certification Statement that is signed by a Certified Business Appraiser who is taking technical responsibility for its content.
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