Business Valuation Expert

Jeffrey Brewster is one of the top-rated business valuation experts in our network!

Hiring a Business Valuation Expert Checklist

#1 Check their reviews and business referrences

Jeff CLine

When hiring a business valuation expert, it’s important to ensure that they have the necessary qualifications, experience, and expertise to provide a reliable and accurate valuation. Here is a checklist to guide you through the selection process:

1. Qualifications and Certifications:
   • Check for professional designations like Accredited Senior Appraiser (ASA), Certified Business Appraiser (CBA), or Certified Public Accountant (CPA).
   • Verify that they have specialized training in business valuation.
2. Experience:
   • Look for extensive experience in valuing businesses similar to yours.
   • Ensure they have a strong track record with businesses of similar size and complexity.
3. Industry Expertise:
   • Confirm they have expertise in your specific industry.
   • They should understand industry trends and how they affect business value.
4. Purpose of Valuation:
   • Ensure the expert has experience with the specific purpose of your valuation (e.g., sale, litigation, tax purposes).
5. Methodology:
   • Inquire about their valuation methods and ensure they use recognized approaches.
   • They should be able to explain the rationale behind their chosen valuation methods.
6. Reputation:
   • Check references and testimonials from past clients.
   • Look for any professional awards or recognitions.
7. Report Quality:
   • Review samples of their valuation reports for thoroughness and clarity.
   • Reports should be well-documented and justifiable.
8. Ethical Standards:
   • Verify that they adhere to a code of ethics (e.g., those set by the American Society of Appraisers or other relevant bodies).
9. Independence:
   • Ensure the expert is independent and does not have a conflict of interest with your business.
10. Communication Skills:
    • They should be able to communicate complex valuation concepts clearly and effectively.
11. Legal Knowledge:
    • If the valuation is for legal purposes, the expert should be familiar with the relevant legal standards and procedures.
12. Professional Fees:
    • Understand their fee structure and ensure it is clear and transparent.
    • Compare fees with other valuation experts to ensure they are competitive.
13. Confidentiality:
    • Ensure they have strict confidentiality policies to protect your business information.
14. Availability:
    • Check that they are available to complete the valuation within your required timeframe.
15. Professional Liability Insurance:
    • Verify that they have professional liability insurance to protect against potential errors or omissions.
16. Data and Research:
    • Assess their access to necessary databases and research tools for a comprehensive valuation.
17. Court Experience:
    • If the valuation might be used in court, ensure the expert has experience with litigation and court testimony.
18. Post-Valuation Support:
    • Confirm that they will be available for follow-up questions and support after the valuation is completed.
19. Review Process:
    • Inquire about their review process to ensure accuracy and completeness.
20. Cultural Fit:
    • Ensure they communicate in a way that aligns with your company’s culture and values.
21. Continuing Education:
    • Check that they are committed to continuing education to stay updated on valuation standards and techniques.
22. Technology:
    • Assess whether they use current technology for data analysis and report generation.
23. Network and Resources:
    • They should have a network of financial, legal, and industry experts to consult if needed.

By following this checklist, you can increase the likelihood of hiring a business valuation expert who will provide a detailed, accurate, and credible valuation of your business.