APPRAISALS

As an integral part of the first stage of the selling process, valuing a company is one of the most important issues. It is highly recommended that sellers obtain a third-party appraisal from a well-respected appraisal company. A broker/intermediary should not be the one to appraise the company and they are generally not sufficiently qualified to do so. Even if they feel that they are qualified, a broker's own appraisal can create doubt in a buyer's mind and, in many cases, can create potential legal liability. However, the most important issue to understand is that regarding credibility and believability. Buyers have a problem with this when the seller's broker is the one who has appraised the company. They see the interests of the seller being placed in front of their own. Third party appraisal companies usually eliminate this issue.

Experienced and successful professionals in the business brokerage industry know this is generally the key to maximizing the sale price of the company, eliminating the largest portion of frustration and disappointment, and saving all parties involved a great deal of generally expensive time. While many sellers believe that their company is worth more than what actual market value is, there are instances in which sellers receive less for their companies than they should. An appraisal from a well-respected, third-party appraisal company creates credibility and believability with buyers and lenders while at the same protecting and maintaining the seller's interest in his/her company.

Many lenders and federal loan guarantors, including SBA lenders, require an appraisal. It is critical that sellers realize this and understand the importance of a seller-obtained, third-party appraisal.

If the seller waits until the buyer appraises the company, then it is the buyer's best interest to appraise the company as low as possible. Likewise, waiting for the lender to require an appraisal will only delay the entire process. Therefore, since an appraisal will probably be performed sometime during the selling process, it is in the interest of the seller to obtain an appraisal in the beginning stages, not after the company is marketed to buyers.

SecurityCompaniesForSale.com uses what many believe to be some of the most respected appraisal firms both locally and nationally and are approved appraisers for most lenders. Because of our established relationships and history of doing business with these appraisal companies, appraisals through SecurityCompaniesForSale.com are more competitively priced.

Many factors affect the price of an appraisal which ranges from around $2,000 to $20,000. However, most appraisals average $2,500 to $4,500. Feel free to request further information about obtaining an appraisal by:

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