A business valuation or business appraisal professional provides independent unbiased opinions of value for your businesses and business interests. An Accredited Senior Appraiser (“ASA”) is one of the SBA Qualified Source Credentials you could be provided with when you hire Boston Valuations for your business appraisal.
What is an Accredited Senior Appraiser?
The ASA designation is widely recognized as the gold standard for business valuation professionals, confirming they have achieved the highest level of education, training, and report writing. This prestigious accreditation is granted by the American Society of Appraisers (ASA). Professionals who hold an ASA accreditation benefit from having their expertise and knowledge validated by a reliable third-party source. The ASA designation affords them greater credibility and recognition in the business valuation profession.
“A Qualified Appraisal” as required by the Internal Revenue Service
In order to be treated as a qualified appraisal by the Internal Revenue Service, an appraisal must meet three qualifications.
- The appraiser must have verifiable credentials such as being licensed or certified as a professional appraiser in the valuation discipline and adhering to accepted communication standards.
- The appraisal must be independent of any interest which could bias its conclusions, with all parties having no direct economic interests in the outcome.
- The appraisal must be based upon sufficient appropriate data needing to support an objective conclusion regarding value. A qualified appraisal must include detailed information on relevant markets and an applicable valuation method that are supported by sufficient appropriate data. The purpose of these requirements is to ensure that taxpayers understand how their valuations were determined and that they can provide a higher level of assurance to the IRS if necessary.
Business Valuations Provide an Important Historical Record
Business valuations play an important role in documenting a company’s history and value. An ASA Accredited Senior Appraiser must provide a thorough and complete report delivered to stand the test of time. Some major areas of focus for business valuations include: mergers and acquisitions, purchase & sale agreements, SBA Loans, buy-sell agreements, financial reporting, valuations for divorce, estate planning, asset allocation, tax advice, corporate restructuring, litigation support, and investor guidance. These areas require meticulous analysis of both tangible and intangible factors in order to provide a reliable opinion of value.
Professional valuations must adhere to a set of standard practices, and the appraiser must determine which approaches and methods are best applied within these parameters. Furthermore, assertions of fact in the final report need to be backed up by a preponderance of evidence and, where professional judgment is necessary, the basis for that judgment must also be clearly explained. This high level of detail is what makes American Society of Appraisers (ASA) Accredited Senior Appraisers so valuable; not only are they knowledgeable about both tangible and intangible assets, but they have had at least five years of full-time appraisal experience.
Conclusion
Boston Valuations ASA-accredited appraisers are educated and experienced in their specialties, are respected members in their respective communities, and have an understanding of the market and industry that other appraisers lack. With an ASA-accredited appraiser on your side, you can be confident that your property will be given its fair value.
Make requesting a free consultation or business valuation from Boston Valuations your first step in your decision-making process.
