A Business Appraisal is an investigation into the law of probabilities with respect to Business value.  Through the Appraiser’s experience, training, and integrity, the Appraiser is able to project the activities of buyers and sellers in the marketplace into an estimation of price-value.  In reaching a conclusion, comparison of Businesses usually involves adjustments due to the individuality and uniqueness of each Business. A Business Appraisal cannot be guaranteed, nor can it be proven.  The opinion of value can, however, be substantiated and the final opinion is the result of a thorough professional analysis of a large amount of data.  An Appraisal must not be considered absolute but should be used as a starting point of documented value by analysis of the assets and financials that may be used as a basis of negotiations between concerned parties, whatever their interests.

The Appraisal process as followed in the preparation the report is an orderly procedure for arriving at an estimate of value.  By following this procedure, the Appraiser begins with a preliminary study of the issues and defines the basis from which the opinion of value is to be made.  Once the data has been collected, a systematic approach is taken to analyzing the data and selecting appropriate valuation methodologies. In assignments to estimate fair market value, the ultimate goal of the  Business Appraisal process is a supported conclusion that reflects the Appraiser’s study of all influences on the value of the company being appraised. 

Therefore, the Appraiser studies the Business from various perspectives.  Various questions are raised and answered through research of the industry and the financial capabilities of the subject Business.  Some of the questions researched may be found in the supporting data section of the report. The various Appraisal approaches are interrelated, and each involves gathering and analyzing specific pieces of data relating to the company being analyzed.  From the analysis, the Appraiser derives separate indications of value, of which one or more may be used in determining the final value. To complete the Appraisal process, the Appraiser integrates the information drawn from market research, analysis of data, and from numerous Appraisal techniques to form a conclusion.  This conclusion may be an estimate of value or a range in which the value may fall.  An effective integration depends on an Appraiser’s skill, experience, and judgment