Professional Business Appraisal Services in Phoenix, AZ
Wiley Financial is a certified valuation company that offers professional business appraisals in Phoenix, AZ. The firm uses expert analytics in the context of your assets and finance to provide an unbiased value of your business. Some assets qualifying for business appraisal in Phoenix include machinery, equipment and just about anything tangible or intangible outside of real estate. Some unique assets such as inventory, portfolios or rare goods such as antiques, jewelry, and fine art require an appraisal. A certified company normally conducts a business appraisal with the goal of reaching a specific valuation. During the assessment, the company will provide you with the valuation and documentation containing the appraisal report. There are different types of valuations or appraisals. However, their methods or formats are mostly the same. When conducting the valuation, your appraiser must be independent and without bias from other stakeholders. If you want expert advice on valuation, Wiley Financial is a leading professional appraisal company servicing Phoenix.
Purpose of Business Appraisal
Investors conduct business appraisals in Phoenix for various reasons and circumstances. One or more stakeholders normally require appraisal reports. You may perform a business appraisal when transacting an asset. You need an estimated appraisal for negotiation, whether buying or selling an asset. Many financial institutions will lend you capital depending on the loan-to-value ratio. Generally, you will secure a loan based on the value of the assets in your business. A financing company will therefore require an appraisal of your business before issuing you a loan. Other institutions requiring a business appraisal are insurance companies. If you want to insure your asset, it’s worth must be determined before the insurance policy issuance. An insurance company must know the total compensation cost in case of a claim. As an investor, it is imperative to declare your worth to your lawyers for estate planning and will. Your lawyer will require an appraisal of each asset before advising on the allocation to beneficiaries. If you have disputes with other shareholders, an appraisal is necessary to support the buy-out of the business shares. In addition, the Internal Revenue Service (IRS) has required businesses to conduct qualified appraisals for tax purposes.
Understanding Appraisals
Your valuation or appraisal values must be objective. A valuer is expected to perform an unbiased appraisal of your business. The valuation should be independent without the interference of any stakeholder’s opinion. When conducting business appraisal in Phoenix, AZ, there are parameters to follow. Your appraisal report should include a cover page indicating the company and the appraisal date. The documentation contains a letter of transmittal. It indicates the vendor, intended legal user and purpose. An appraiser will show the key findings on the executive summary before drafting an asset description. The description usually contains legal identifiers and analyses such as asset quality, deficiency and sales history. After getting all the asset information, a valuer performs an appraisal using one of the valuation methods. Ensure that you get the certificate from the appraiser. You will get information on the regulatory bodies and check the credentials using the certificate. Finally, you get an appendix with statements and various valuation calculations. Wiley Financial provides precise, comprehensive, commissioned and professional business appraisal in Phoenix.
Business Appraisal Approaches
Asset Approach
It is also known as the cost or replacement cost approach. Using this method, every asset component is adjusted and a value assigned before totaling. The liabilities are then deducted from the total value of the asset. After getting the net worth, your appraiser will review the asset and perform the necessary adjustments to match its market value. The asset approach has two main valuation methods. i.e., adjusted net asset and book value.
1. Adjusted Net Asset
2. Book Value
Certified Appraisal and Estimated Business Valuation
Certified business appraisals normally contain a deeper analysis than the estimated business valuation. Certified business appraisals in Phoenix, AZ, are normally carried out by a professional. The appraiser is tasked with collecting, analyzing and preparing reports for your business finances. However, you can conduct an estimated business valuation independently because it is faster and less invasive. Business appraisal in Phoenix requires accurate bookkeeping and financial data, especially in legal situations. Situations such as tax, recapitalizations, bankruptcy and divorce proceedings require a certified appraiser. Wiley Financial is certified by the American Society of Appraisers to perform accredited appraisals. Contact Wiley Financial for professional business appraisal in Phoenix, AZ, when needing any valuation.
