A brief description of how to appraise a business, a home, or anything else.
By Mark D. Harris
Determining the value of something is a daily task for everyone and has been since the dawn of time. We value groceries, dishwashers, and even our time in dollars, so a bag of groceries that costs $50 is worth one hour of our time, while the dishwasher is worth ten hours. Value includes a host of factors. Acquiring a business, for example, should result in direct financial gains. Acquiring one of your suppliers, however will result in direct financial gains and synergies with your existing business. Reacquiring a shop once owned by your grandfather should result in direct financial gains and meet your emotional needs. Value is unique to each individual but will usually fall within a widely accepted range. Legally, value is what a reasonable buyer with full information and under no undue influence would pay for an entity in a free market (Hitchner, 2017). Valuation has become entertainment, with expert valuators at the Antique Road Show identifying “rags” (clothes, furniture, letters, items of unknown value) that are actually “riches” (valuable artifacts, antiques, and collectibles) for the owners and viewers.
Continue reading “Uniform Standards of Professional Appraisal Practice”
