Business Appraisals
● Construction Companies
● Manufacturing Companies
● Service Companies
● Retail Companies
● Agri-Business Companies
● Professional Practices
● Hospitality Companies
● Real Estate Holding Companies
● Energy Companies
● Utility Companies
Services Available Nationwide
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Telephone (844) 710-9500 or (317) 216-8601
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We provide valuations of various small business operation types. Assignments accepted include mostly "main street" type companies of $10 million or less in annual revenue. Industries covered include.
Due to our experience and qualifications in other areas of the commercial & industrial appraisal profession (machinery & equipment and real estate), we are able to handle assignments involving going concerns that own and/or control major holdings of such tangible assets. Unlike assignments involving other business appraisers, it is not necessary to spend additional time and money on hiring outside appraisers to value the tangible assets held on the subject business's balance sheet.
Business appraisals are ordered for a number of reasons. Some of these situations may include.
● Accounting & Financial Reporting
● Acquisitions & Mergers
● Allocation of Purchase Price
● Buy / Sell Agreements
● Corporate Planning
● Divestitures
● Estate Planning Matters
● Estate Tax Matters
● Financing
● Gift Tax Matters
USPAP Compliant, Competent
& Certified
The education and experience of our team members exceeds the voluntary "Appraiser Minimum Qualification Criteria" adopted by the Appraiser Qualifications Board (AQB) of The Appraisal Foundation for each respective area of practice. Since we are USPAP (Uniform Standards of Professional Appraisal Practice) certified, our reports are completed in accordance with these guidelines. We are required to re-certify in USPAP content on a periodic schedule.
Client Confidentiality
Valuation Methodology
The majority of business enterprise appraisals are performed for the purpose of estimating the "Fair Market Value" of an identified interest (ranging from 100% control to some form of partial interest) in an on-going business entity (i.e. S Corp, C Corp, LLC, Partnership, Association or Sole Proprietorship). On occasion, an assignment may call for estimating the "Liquidation Value" of an identified interest (typically 100% control) in a business entity due to an issue such as in-solvency or bankruptcy.
Typically, given the constraints of the data available in the marketplace, the value of the entire enterprise must first be estimated before addressing any partial interest calculations. Although, is some situations, techniques do exist to value a partial equity interest directly. However, these circumstances are not commonplace. Normally the entity is valued, then the partial interest is analyzed.
There are three (3) generally accepted approaches to estimating value in a business enterprise appraisal engagement. These are briefly described as follows.
Asset Approach
A generally accepted approach of developing a value indication of a business using one or more methods based on the value of the subject business's assets net of all liabilities.
Market Approach
A generally accepted approach of developing a value indication of a business using one or more methods that compare the subject business to similar businesses that have been sold in an open market.
Income Approach
A generally accepted approach of developing a value indication of a business using one or more methods that convert anticipated economic benefits into a present value amount.
Once the range is established by the developed approaches, a reconciliation of the indications is performed, based upon their respective relevance to the subject appraisal problem, to arrive at a final estimation of the value for the subject business.
Additional concerns may need to be addressed in the form of discounts at the entity level, including consideration for key man issues, trapped in gains, et cetera. These discounts are normally applied to the enterprise as a whole.
If the subject of the appraisal is a partial equity interest in the business enterprise. Then additional calculations are undertaken to; 1) account for the pro-rata interest in the business (i.e. number of shares or percentage of ownership), 2) any potential premium or discount for control or lack thereof (i.e. control interest, non-control interest, blockage interest, or minority interest), and 3) any potential discount for lack of marketability.
Depending upon the situation surrounding a valuation and the data available. We will help you sort through this methodology to a clear understanding of the value to be estimated and the approaches to be applied.
The types of data we utilize in the performance of business enterprise appraisals vary widely depending upon the specific appraisal problem. These sources include the following.
● BizComps
● Deal Stats
● MergerStat
● BVMarketData
● KeyValueData
● First Research
● BizMiner
We subscribe to numerous print media and online databases for business valuation information & data. Our resources for this data are always expanding, given the reach of the information age. This all goes together to form a solid basket of market information to form the basis of estimated values. Each of our written reports will list the specific references for the engagement that were relied upon in the performance of the appraisal analysis.
A few years back USPAP (Uniform Standards of Professional Appraisal Practice) was modified to do away with the former definitions of the type of appraisal undertaken (i.e. "limited" or "complete"). The new standard involves the "scope of work rule" in which a client and an appraiser must mutually agree upon a scope of work that is adequate for the assignment and will produce credible results.
Of course, the appraiser is charged with the responsibility of final determination on what is required to produce credible results. So an appraisal analysis may involve only one (1) approach to value, two (2) approaches to value, or all three (3) approaches to value. It is all variable on the particular appraisal problem, the subject property type, and the market data available for the assignment.
There are two (2) basic types of written appraisal reports produced for business valuation assignments. These include the following; 1) the "restricted-use appraisal report" narrative, 2) the "appraisal report" narrative.
A "restricted-use appraisal report" narrative presents "statements & basic illustrations" relative to the data, reasoning, and analyses that were used in the appraisal process to develop the opinion of value. Supporting documentation concerning the data, reasoning, and analyses are typically enclosed within the file for the assignment. This report is suitable for "internal uses only" by the named client. It is not suitable for intended uses where third party users may need to review the report.
An "appraisal report" narrative presents "summary discussions & illustrations" of the data, reasoning, and analyses that were used in the appraisal process to develop the opinion of value. Supporting documentation concerning the data, reasoning, and analyses are typically enclosed within the addenda of the report (and more fully documented in the the file for the assignment). This report is suitable for a number of intended uses and is appropriate when third party users may need to review the report.
Schreiner Valuation Resources, LLC
(844) 710-9500 or (317) 216-8601
Corporate Headquarters
101 W. Ohio Street, Suite 2000
Indianapolis, Indiana 46204
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