|
GENERAL GUIDELINES FOR THE
APPRAISAL TYPES
Full
Appraisal:
This
is a must for companies with
revenues of $2,000,000 and above,
especially if there might be SBA
financing.
In every case this
appraisal is the best for selling
a business, litigation purposes,
estate planning and will give the
reader good support for the value.
Approximately 70 to 100
pages.
Report
contains:
·
10 Valuation Methods
·
Description of all
methods, weightings and appraisal
methodology
·
Statistical Summary
·
Graphic Displays
·
Comparable Sales
Analysis Method
·
Critical Factors
Discount/Premium Analysis
·
Risk Factor Method
·
Weighted Value
Formulas section
·
Correlation of
Methods
·
Clarification of
Value
·
Comments on
Appraisals
·
Comments on Fair
Market Value
·
Required Rates of
Return – Forming a
Capitalization Rate
·
Principles of
Evaluation section
·
Discretionary Net
Profit Analysis
·
Historical and
Projected Overview
·
Normalized
Discretionary Earnings section
·
All of the
comparable sales we have
researched
·
A write up on the
Industry and where it is headed
·
Questionnaire
describing the assumptions in the
report
·
A write up on the
local trade area for the company
·
Industry Ratio’s
·
Area maps and
sometimes Ariel photo’s
·
Justification for
Purchase Test
Limited
Scope Appraisal
This
is a good appraisal for a smaller
company that just can’t afford
the full-blown appraisal above.
I don’t know that here
would be a particular size company
to limit this to, but it would
certainly leave a lot of important
information out for a
sophisticated buyer.
Approximately 50 pages
The
report contains:
·
10 Valuation Methods
·
Description of all
methods, weightings and appraisal
methodology
·
Statistical Summary
·
Graphic Displays
·
Comparable Sales
Analysis Method
·
Critical Factors
Discount/Premium Analysis
·
Risk Factor Method
·
Weighted Value
Formulas section
·
Correlation of
Methods
·
Clarification of
Value
·
Comments on
Appraisals
·
Comments on Fair
Market Value
·
Required Rates of
Return – Forming a
Capitalization Rate
·
Principles of
Evaluation section
·
Discretionary Net
Profit Analysis
·
Historical and
Projected Overview
·
Normalized
Discretionary Earnings section
·
Questionnaire
describing the assumptions in the
report
·
Justification for
Purchase Test
Opinion
of Value Report:
This is an excellent report
for small companies that just
can’t afford the larger one.
I would hesitate to use
this on companies with over
$5,000,000, in sales but this
would be your call.
We will not do this one for
companies that may end up in
litigation, estate planning or a
Stock Sale Appraisal.
It would be a good way for
a company to see if it wants to
spend the money for the larger
one.
Approximately 30 pages.
The
report contains:
·
5 Valuation Methods
·
Description of all
methods, weightings and appraisal
methodology
·
Statistical Summary
·
Graphic Displays
·
Comments on
Appraisals
·
Comments on Fair
Market Value
·
Required Rates of
Return – Forming a
Capitalization Rate
·
Principles of
Evaluation section
·
Discretionary Net
Profit Analysis
·
Historical and
Projected Overview
·
Normalized
Discretionary Earnings section
·
Justification for
Purchase Test
Please
E-Mail us for additional
information
on Valuations
|
