Does the economy have an impact on the appraisal?
In many cases, yes. However, it depends on the facts and circumstances surrounding the subject company. Is the company’s industry one whose success is tied to the strength of the national or local economy, or is it one that thrives during a down economy? How long has the company been in business and how have they handled the ups and downs of past economic cycles? Do they have a plan for dealing with current economic issues? These are all questions and issues that an appraiser needs to consider on a case-by-case basis.
Can a company do an appraisal on its own, or does it need outside help?
Once again, it really depends on a company’s particular set of facts and circumstances. If the appraisal is to be done for domestic relations or other litigation-related purposes, it may be recommended or even required that an accredited business appraiser be engaged to make sure that certain valuation and professional standards and requirements are met in both the appraisal process and report.
Eddie Blaugrund, CPA/ABV/CFF, CFE, is an associate director in business valuation and litigation consulting services at SS&G. Reach him at (440) 248-8787 or [email protected].
