It was curious the other day to see a group advertising free “market-based” business valuations. As there is no such thing as a “market valuation”, nothing I have experienced in business life is “free”, and the group offering this service has no business valuation credentials, we thought a brief history and overview of business valuation standards would be in order.
After the Savings and Loan collapse of the mid-1980’s, the Appraisal Foundation (Foundation) was authorized by Congress as the source of appraisal standards and appraiser qualifications.
Appraisal Standards – Under the Foundation, the Appraisal Standards Board (ASB) set the minimum standards, known as the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP are the generally recognized ethical and performance standards for the appraisal profession in the United States. USPAP was adopted by Congress in 1989, and contains standards for all types of appraisal services, including business appraisal. USPAP is updated every two years so that appraisers have the information they need to deliver unbiased and thoughtful opinions of value.
Appraiser Qualifications – Two of the most respected business-appraiser qualifications are the Accredited Senior Appraiser (ASA) through the American Society of Appraisers and the Accredited in Business Valuation (ABV) through the AICPA. These business-valuation specific credentials are earned only after intensive study, the passing of rigorous exams and five years of full-time business appraisal practice. Appraisers must also complete a comprehensive ethics course every two years along with taking 40 hours of annual continuing professional education courses.
The Foundation was put in place to assure the public that by engaging an accredited business appraiser, the public could be assured the professional hired will conduct business appraisals in an ethical and professional manner in accordance with the strict standards of the Uniform Standards of Professional Appraisal Practices.
Decosimo Corporate Finance, whose principals have achieved the ASA and ABV business valuation designations, provides the business community with the highest level of business–appraisal services.
Please call Tom Decosimo, CPA/ABV, ASA at 423-266-4000 or email him at email@example.com for more information about business valuation services.