Certified Business Appraisal Price Comps

by an investor from Duke University - The Fuqua School of Business

3 years ago

I am looking to get an appraisal on a family-owned business with ~$10M in revenue for the purpose of an intrafamily transfer. Does anyone have price comps on the cost a certified business appraisal?

Thanks for the help!

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11 comments

intermediary from The University of Chicago - Booth School of Business

Normal valuation and market comps are when a third party is buying, or bought, the business. Leverage is implicit in such normal valuation and market comps. However, when it comes to intrafamily valuation, leverage is typically not acceptable to the buying shareholder. The selling shareholder expects cash which is the buying shareholder is not able to provide. My practice is M&A and structuring. I do not do valuation. However, my software helps solve valuation and structuring problem in intrafamily transfer. Happy to share. Please DM me. (Example: 2 years ago, 3 brothers, all active in the business. Shareholder conflict. Family attorney engaged two appraiser firms w/o telling them whether they were valuing buying shareholder or selling shareholder. One firm had 10 appraisers with ASA; other had 20. One firm valued the business at $40 M; the other valued it at $150 M. Family CPA asked me to intervene.)

3 years ago | like reply | 1 like

searcher from Middlebury College

Neil - I have someone who might be a worthy connection. Ill message you.

3 years ago | like reply | 1 like

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