Qualified Certified Appraisal When selling your company you will likely want to get an appraisal from a certified valuator. Business Appraisals can certainly offer you a qualified certified appraisal. Sellers Vs Buyers When we do appraisals for potential acquisitions, our client will want the highest appraisal possible if they are selling. If our client is the buyer, he or she will want the lowest appraisal possible. So how do we remain impartial? It is because our appraisal will depend largely upon information provided to us. It is the responsibility of the buyers and sellers to ensure the accuracy of the financial position of the company. For example, if a selling client presents information that is inaccurate it could produce a valuation that is higher than it actually should be. However, this is usually not a problem because an appraisal can be a protection to the buyer and seller. Here is some advice… Buyers Advice An appraisal becomes a legally binding document when the potential buyer of a company requires a clause in the contract that states the purchase of the company is based on the validity of the appraisal and the seller thereby acknowledges that the information [given to Business Appraisals] is accurate according to their knowledge. And in the event that information is discovered to be incorrect, the seller shall be held liable for any discrepancies. As a buyer of a company, it’s also a good idea to require the seller to carry some portion of the note. That way you would have some leverage if you bought a company and later found out that the seller lied or gave incorrect data to the appraiser and thereby produced an appraisal report which showed a higher than accurate value. Sellers Advice As a seller, one of the biggest challenges you will have will be to convince a potential buyer to shell out a lot of money for your company. The buyer is going to have a huge amount of anxiety and concern about the soundness of that investment. One way a seller can overcome this obstacle is by including the above suggested clause in the contract. This will mitigate concerns and anxiety the buyer will have because it essentially binds the seller to the validity of the appraisal (which is naturally connected to the validity of the financials which were used to produce the appraisal). And obviously any new buyer will eventually find out about inaccuracies or falsehoods should they exist… To learn more, check us out on Facebook Or call us today for a Free Quote (Toll Free) 800-837-7125