Vision and Value
Most appraisers stare through a pinhole when they view and value a business. Their vision is limited to very few pre-defined criteria that help them complete pre-defined checklists prior to pushing the print button on their valuation software. I believe most appraisers honestly try to do the best job they can. But they cannot escape the limitations of their vision.
As a CPA and an MBA I do NOT stare through a pinhole when I am asked to value a business. Instead, I look through a window and consider many inter-related aspects of the business. Appraisers merely render an Opinion of Value. I also render an Opinion of Value but, in addition, because of my other qualifications and experience, I can explain the tax consequences and business significance of a valuation.
What does it mean if your business is under-valued relative to competitors? Why? What can you do to improve performance and valuation? As an MBA I was specifically trained to answer these questions.
What tax consequences apply if more value is assigned to inventory and less value to real estate? What happens if you change business accounting methods? As a CPA I was specifically trained to answer these questions.
Does your appraiser understand your industry, local market, and business environment? I refuse to perform appraisals unless I am experienced in and understand all of these critical elements. Because I prepare tax returns for clients in many different industries, I have insider knowledge of business conditions, operating characteristics, and other factors which affect valuation.
The bottom line is clear: More knowledge and more experience mean more insight, and more insight means more actionable intelligence for you to benefit from. The most expensive commodity in the entire world is ignorance.
Appraisal Services Offered
I offer business valuation appraisals pursuant to the AICPA’s Statement on Valuation Services No. 1.
Choosing an appraiser is a very important decision that will affect your life and the life of your business. Think carefully and choose wisely. No appraisal at all may be far better than a shoddy appraisal.
Certified Public Accountant Master of Business Administration
Tel: (207) 989-2700 E-Mail: GeorgeAdams@IntelligenceForRent.com
450 South Main Street: The HQ of IQ
Brewer, Maine 04412-2339
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