General Information
An appraisal is a type of investigation into the law of probabilities with respect to valuation.
Through the appraiser’s experience, training, and integrity, we are able to project the activities
of buyers and sellers in the marketplace into an estimation of value. In reaching a conclusion,
comparison of business assets usually involves adjustments due to the individuality and
uniqueness of each business. Transactions are often influenced by sentiment, bias, specific
needs, politics, familiarity, lack of understanding, and other conditions not considered by the
impartial appraiser.
The appraiser cannot lend credence to these possible factors lest he misrepresent the very
reason for his profession.
An appraisal cannot be guaranteed, nor can it always be proven. The opinion of value is the
result of a thorough professional analysis of a vast quantity of data. An appraisal must not be
considered absolute but should be used as a basis of negotiations between concerned parties,
whatever their interests.
The examination process as followed in the preparation of this report is an orderly
procedure for arriving at an estimate of earnings. By following this procedure the appraiser
begins with a preliminary study of the problem involved and defines the basis from which the
appraisal is to be made. A program is then initiated for the accumulation, analysis, and
observation of data.
The data called for in the preliminary study is then gathered, classified and analysed.
In assignments to estimate a conclusion, the ultimate goal of the valuation process is a
supported conclusion that reflects the appraiser’s study of all influences on the value of the
Business being appraised. Therefore, the appraiser studies the assets from various applicable
viewpoints.
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