Appraisals and valuations: What’s the difference?
A formal valuation is a complex task and will take some time to complete, after which the client will receive a report detailing the value of the business and a fee will be charged for this service. Valuations are required when a definitive value is needed, reasons include a financial settlement, obtaining finance from a lending institution or establishing the value of a deceased estate, a court may also order that a valuation be obtained as part of the process of resolving a dispute.
A market appraisal is intended as a guide to pricing and estimated by knowledge of the business sales marketplace and should only ever be used as an estimate of price. They have no legal standing. Appraisals are considerably less costly than a valuation and are generally requested by business owners to get a ‘feel’ for the market, often as part of their preliminary exit or succession planning considerations.
For a confidential discussion on your business, please call or email Kent Aughey, General Manager 0408 810 299 or kent@dalewood.com.au