Every one of our customers will ask one of the following questions.
- How much credibility do your appraisals have?
- Can your appraisals stand up in court?
- What credentials does your firm have?
- Can your appraisals be used for IRS matters?
- Can your appraisals be used for SBA funding?
Our appraisals have been used in court and for IRS matters. We are certified by the NACVA.
For a Legal Matter —or— For a Court of Law
The ultimate test of a business valuation firm is whether or not their appraisals are credible enough to hold up in court. Because in court, both the appraisal and the appraiser will come under extreme scrutiny. The opposing side will have the opportunity to cross-examine, exploit and attack any hole in the appraisal, as well as any credential issues of the appraiser.
We have done a lot of appraisals which are intended for litigation. The overwhelming majority of cases settle out of court. However, we have had many clients who have gone to court and our appraisal ends us being submitted into evidence. Our appraisal has been submitted into evidence countless times, and to our knowledge, there has never been an issue with our appraisal.
In some cases, a representative from Business Appraisals ends up being subpoenaed to appear as an expert witness and to testify in defense of the appraisal report. This is especially the case when the appraisal is a key component of the case. When our clients need an expert witness in addition to the report, the CEO of the company will typically appear as the witness. The last time we appeared in court was in June of 2019.
Business Appraisals has had two CEO’s. Formerly Robert Klein and the current CEO is Spencer Christensen. Between Robert and Spencer, we have appeared in court 11 times and Dane Burton has appeared 2 times. Of all 13 times, we have been accepted and admitted as an expert every single time; and on top of that, every time we have appeared, our appraisal has been accepted by the judge as the correct value for the company in question. We have won every single time.
Business Appraisals has a perfect in-court record.
Because we have appeared in court many times, we have learned a lot of things about testifying. If you need us to appear in court and testify on the value of your company, we have a package with information which will help you and lawyer. It will save your lawyer time in preparing your case, which will save you money. Ask us about it, and we can send this package to you when we complete your appraisal.
For an IRS Matter
Our appraisals have been used for over 100 cases involving the IRS. Of these cases, there has never been an incident, of which we are aware, where the IRS has had an issue with our credibly or our valuation report.
For a Potential Sale / Purchase
The majority of our clients are seeking an appraisal because they want to either buy or sell a company. Our appraisals hold up in court. Think of how much credibly that will give you in a negotiation. Our appraisals do not provide a definitive answer on an acquisition price. However, they provide a starting point for the negotiation.
They can also provide leverage. For example, if you are buying a company and the seller is asking too much, you can simply present our appraisal in your negotiation. When you explain that our firm has been in business for 30 years and that our appraisals have held up in court and for the IRS, it will carry a lot of weight and will be a powerful negotiation tool. Over the last 30 years, as we have observed our clients successfully buy or sell a company, we have noticed that in the overwhelming majority of cases, the companies will sell for a value very close to our appraised value. Granted there are some outliers, (and always will be in fair, free-market, economy). But over 90% of the time the sale price ends up being within about 10% of our appraised value.
For Business Funding
If you are seeking funding, most SBA lenders will require you to have a valuation from a credible firm like Business Appraisals. We have done many appraisals for SBA lenders.
Regardless of why you need an appraisal, Business Appraisals has the experience, the reputation and the credibility to give you an accurate appraisal which is clear and easy-to-understand.