Finding A Qualified Appraiser
Finding a qualified business appraiser isnít always easy. Many arenít qualified, and their reports are deficient because they donít include the proper analysis and detail to support their conclusions, says Philip M. Hamilton, a CPA and business appraiser who is president of the Austin chapter of the Texas Society of CPAs.
Philip J. Capell, an advisor and lawyer who is president of Piermont Financial Inc. in Melville, N.Y., recommends: ìYou look at whether their appraisals are generally accepted by the IRS and if they have a proven track record with the government. When you get a written report, it must substantiate valuation. You want to make sure the person who does the appraisal will qualify as an expert witness, is presentable on the witness stand and can substantiate value if the valuation is contested.î Also ask for references, as well as examples of reports with client references, says Johanne M. Floser, manager of BST Valuation & Litigation Advisors, with offices in Albany and New York City. Itís also a good idea to ask an appraiser if she or he has an extensive business valuation library and relevant experience in publishing, lecturing or teaching valuation, she adds.
Organizations that accredit business appraisers include:
ï American Institute of Certified Public Accountants, www.aicpa.org. The AICPA provides the Accredited in Business Valuation (ABV) for CPAs only.
ï American Society of Appraisers, www.appraisers.org. It offers the ASA accreditation for business appraisers.
ï Institute of Business Appraisers, www.go-iba.org. It awards designations for Certified Business Appraisers (CBA), Master Certified Business Appraisers (MCBA) and Business Valuators Accredited in Valuation (BVAL).
ï National Association of Certified Valuation Analysts, www.nacva.com. It awards designations that include Certified Valuation Analysts (CVA), Accredited Valuation Analyst (AVA) and Certified Forensic Financial Analyst (CFFA).
Some appraisers feel certain organizations set the bar for certification significantly higher than others. The ASA Web site at www.appraisers.org offers a comparison of the accreditation criteria required by all four organizations.