Appraisal and Business Valuation
Q: Which is the best appraisal report for me?

Consider the following two factors:

1. What is the intended use of the appraisal and who will be using it?
2. What level of assurance do you want?

Intended Use:
If the purpose of the valuation is to send the report to the IRS, a Comprehensive Business Appraisal is required because it meets the guidelines established under IRS Revenue Ruling 59-60. This type of appraisal is used for filing an estate / gift tax return, ESOPS, charitable contributions and calculation of built in Gain for S Corporation election or any tax matter that will be brought before the IRS. If the subject report is to be used by the court, in litigation or divorce proceedings, we highly recommend a Comprehensive Business Appraisal.

You should also be aware of increased scrutiny by the IRS of appraisers and the reports they generate. The IRS follows the guidelines established by the Pension Protection Act of 2006 for "qualified appraisers and qualified appraisals." This means, who prepares your business appraisal, is just as important as who will use it.

National Business Appraisal's reports are accepted by the IRS, banking regulators and the courts.

Level of Assurance:
The level of assurance is greatest with a Comprehensive Business Appraisal, less so with the Value Calculation and Market Report and least with the Broker Opinion Letter. Our experience shows that business owners who have relied on our Comprehensive Business Appraisal and we have subsequently taken their companies to market sell faster than industry averages by about 40%.
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Only you can determine the level of assurance that is best for your situation. Knowing what your business is really worth could make you thousands at the closing table ... if not more.

Q: How Long does it take?

A comprehensive business appraisal takes about 30 days to complete but it can be done in less time if you help us by providing us the information we request and complete the proprietary business intelligence package we provide.

If the purpose of the appraisal is for planning for the sale of your business in two or three years, we like to take about six weeks. This gives us adequate time to make specific recommendations to enhance the value of the business and improve its marketability. P.S. When we deliver the report, we schedule a time to meet, typically in about six months to check in on progress and update you on market conditions. Of course, this extra amenity is complimentary and at no additional cost to you.
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It takes about 10 days for use to complete a Value Calculation and Market Report; we can provide a Broker's Opinion letter within 48 hours of receiving all requested information.

Q: What does a business appraisal cost?

We base our fees on the time involved and complexity required.

We know every job, like every company, is unique and for this reason, we strongly urge you to meet with us in person to talk about your valuation project. That's why we offer a free, no-obligation initial consultation. When we meet, you will get to know us and we'll make recommendations to cost effectively deliver the valuation report that best suits your needs. Often times we can limit the scope of the project and save you money.

If a Certified Machinery and Equipment Appraisal is required, and we perform the appraisal and business valuation at the same time, you will save money because our cost is less and we pass along the savings to you. What's better yet, you will have a single contact for the entire business valuation project.
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Before we start any engagement we confirm, in writing our full understanding of the assignment, your scheduling requirements and our fees. All of our engagements are fixed fee which means we won't nickel and dime you with extra miscellaneous charges and there will be no surprises.

Business Sales
Q: Can National Business Appraisal help me sell my company?

It depends, some businesses are saleable; others are not.

Mark Richardson, the company's founder, is experienced and has been a broker for more than 30 years. He specializes in the sale of privately owned companies and is an expert on local market conditions.

Business Sales are transacted through JMR Capital, Inc., a certified merger and acquisition company and licensed real estate broker. (DRE01815017). You can learn more about JMR Capital, Inc. and Mark Richardson and find informative articles about buying and selling a business by visiting the company's website ​

Q: Isn't there a "rule of thumb" I can use to value my company?

Would you want to price your business based on an unverified average? How much money are you willing to leave on the table when you sell?
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Here's an article written by Mark Richardson for "The Business Transfer Advisor"
"Using Price Multiples Can Cost you a lot of Money"

Q: What size companies does Mark Richardson represent? 

I have strict criteria about the companies I represent and it has nothing to do with size. What's more important is working with owners who have a realistic expectation of value, a believable reason for selling and are prepared to take the time to help me learn about their companies.

Most of my clients' businesses sell in about half the time of industry averages and I enjoy one of the highest closing averages in the industry. That's because I work with a small number of good companies and dedicate all my effort to getting the transaction completed at top pricing. Besides, my livelihood and compensation depend on my performance.

My typical client is a business owner with company revenues between $2 and $50 million who needs help locating a buyer to purchase, own and continue the business. Don't read this as think I don't work with smaller businesses – I do. In fact, some of my most rewarding professional experiences have come from selling smaller businesses. Small company owners deserve the same respect and expertise as larger firms, and like I said before, it's not about size - its about you.

If we engage, your business will sell. 

More FAQ's
Q: My CPA tells me he is qualified to perform a business appraisal. Is he really?

We live in an age of specialization.

CPA's who have received the Certified Valuation Analyst (CVA) credential from the National Association of Certified Valuation Analysts and the Accredited in Business Valuation (ABV) designation from the American institute of CPA's are trained to perform business valuations. However, this doesn't necessarily mean your CPA is the best person to perform the appraisal.

At National Business Appraisal we understand your CPA is a trusted advisor. We often work with CPA's on valuation projects because of their familiarity of your financial affairs and overall operations of your business. We also understand that most CPA's, even though they provide excellent tax and accounting advice, do not perform business appraisals on a regular basis.
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When it comes to having your business appraised, you want a truly independent opinion from a specialist with hands-on market experience and an intimate knowledge of current market conditions. It's just that simple.

Q: Do you appraise machinery and equipment? 

Certified Machinery and Equipment appraisals are provided by National Equipment Appraisal, a division of JMR Capital, Inc.
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If a Certified Machinery and Equipment Appraisal is required, and we perform the appraisal and business valuation at the same time, you will save money because our cost is less and we pass along the savings to you. What's better yet, you will have a single contact for the entire business valuation project.