Business valuation or market appraisal – what's the difference? [video]

Posted by James Price | JPAbusiness on 27-Feb-2019 02:00:00

Cat and dog

Business market appraisals and valuations are both robust assessments of a business’ worth and are appropriate for use in different circumstances.

In this video I explain the difference between a business market appraisal and a business valuation, and when each should be used.

 

If you are seeking an 'indicative view' of a business' value, then a market appraisal is a cost-effective means of achieving this.

A sworn valuation is appropriate if you are seeking a document that can do the following: 

  • stand up in a court of law
  • be presented to a bank for finance purposes
  • be used to help settle a dispute
  • support a share or purchase transaction

A sworn valuation (conducted by a Certified Practising Valuer) is much more detailed than an appraisal. It comes with a specific value related to the business and verifies that value against the methodology used by the valuer.

The following infographic summarises the differences you can expect to see between a JPAbusiness Market Appraisal and Valuation:
Market appraisal versus Valuation

 

If you are interested in seeking a market appraisal or valuation for your business, or for a business you’re considering purchasing, contact the JPAbusiness team on 02 6360 0360 (Orange) or 02 9893 1803 (Parramatta) for a confidential, obligation-free discussion.

 

James Price 2018 smallJames Price has over 30 years' experience in providing strategic, commercial and financial advice to Australian and international business clients. James' blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.

 

Topics: Business Value, Advice, Valuations, Video, Business valuation, market appraisal, valuing a business, Parramatta, Orange NSW

 
Disclaimer: The information contained in this blog is general in nature and should not be taken as personal, professional advice. Readers should make their own inquiries and obtain independent, professional advice before making any decisions, taking any action or relying on any information in this blog. 
 
 

 

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