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Following is a list with links to various valuation certifying organizations that provide credentials for individuals that provide business valuations. For a bank or other lenders to provide financing, they will require an appraisal from someone with credentials. This list is not in any particular order and your lender may require a specific designation or even a specific appraisal firm for your situation.
The answer depends on the credentials from the person doing the valuation. Certain organizations have very strict requirements for the procedures that must be followed in preparing the valuation.
In general the more difficult that it is to obtain the valuation credentials, the more strict the organization is on the requirements for the valuation process. Most valuations from credentialed people will have a bare bottom price of $2,500.
My experience is they usually start at $5,000 and go up to $25,000 for small and mid-sized businesses. This still depends on the size and complexity of the business. At the bottom of this section are two – do it yourself – low cost alternatives to obtain a value of a business. Use these with extreme caution.
BUSINESS VALUATION CERTIFICATIONS and DESIGNATIONS
Following is a link to another website that has more details and describes some but not all of the following designations:
The Institute of Business Appraisers
American Institute of Certified Public Accountants – Accredited in Business Valuation (ABV)
American Society of Appraisers (ASA)
Institute of Business Appraisers (IBA)
National Association of Certified Valuation Analysts (NACVA)
American Business Appraisers
Following are additional websites that may be of interest. This is because it is one of the least expensive ways to get a report with a printout stating a value for a business. However, these are template driven reports that require someone to have knowledge of the business and a good understanding of business valuation terminology and methods.
The report is computer generated and accordingly does not use reason or unusual circumstances in determining the value. The Fair Valuers site or the excel worksheet from the Business Book Press may be adequate for certain situations. Please use these with extreme caution.
The Fair Valuers $399 Valuation on line www.onlinebusinessappraisal.com/?gclid=CIHw-pve66ECFSCjiQodkXSuPQ
Software to do it yourself to create a valuation of your business $99www.businessbookpress.com/catalog/s101.htm
Contact Business Acquisitions, LLC at (505) 918-9900 to find a buyer for your business sooner, rather than later.