The process of developing an appraisal and preparing an appraisal report can take several days to several months depending upon the size and scope of the business, the availability of the needed financial information, the availability of the client, the client's advisors, and other reliable sources.
USPAP requires that all three approaches to value be considered in every appraisal assignment. If one or more of the standard appraisal approaches (Asset Based Approach, Market Approach, & Income Approach) are not utilized, the reasons why must be stated in the appraisal report. Within each appraisal approach, there are several different appraisal methods that can be considered. There is no authority that states how many methods must be used within an appraisal. The answer as to how many methods should be used depends upon the scope of the assignment. In general, utilization of more than one method within each of the three approaches tends to give added credence to an assignment; however, time and costs considerations often derive the type of appraisal that is to be conducted and the type of appraisal report to be prepared. USPAP states that sufficient methods should be utilized by the appraisal to ensure a creditable work product.
A great source of books and articles relating to valuation issues involving intangible assets can be found in bibliography section of this BV Website. Click on the bibliography section.
The selection of appraisal methods depends upon the use of the appraisal and the scope of the assignment. There are many good resources available to business appraisers for valuing businesses. This BV Website contains information about some of the most reliable sources. Clink on the bibliography section of the BV Website found on the Home Page.
The determination of value for a business is always done as of a specific date; however, the final opinion of value most always considered historical information as well as the future projections about the subject company and its industry. Each day there could be slight medications of value due to changes in the capital structure of the company; however, in general practice, if there are been no significant changes in the operations of the business or its capital structure, annual updates may satisfy most uses of the appraisal report.