The Appraisal of an Appraisal Company

Summary

At some point, real estate appraisers may consider selling their firm, buying another, or bringing in or buying out partners. At these moments, appraisers will want an appraisal of their appraisal company. The appraisal of an appraisal company is a business valuation exercise and importantly different from real property appraisal. This article examines the appraisal of appraisal companies from the perspective of business valuation. We will explain the methodologies and procedures that represent best business practices and discuss a range of valuation inputs. The discussion is focused on the valuation of small and midsize appraisal firms.