The Purpose and Use of an appraisal plays a large part in determining the scope of the assignment, the type of appraisal to be conducted, the type of report to be completed, and the methodologies to be utilized. USPAP Standards and most standards promulgated by the professional appraisal organizations require that the Purpose and Use of an appraisal be stated in the appraisal report.
Business appraisals can generally be categorized into three groupings:
Yes, these are intangible assets that are frequently appraised by business appraisers utilizing standard appraisal methodology.
Small family businesses often need business appraisals for many of the same reasons large companies need appraisals. Estate planning and gifts of ownership interest are frequent uses for of an appraisal for a family owned business.
Appraisers tend to specialize in specific appraisal disciplines falling into the following categories often with many sub-categories within each.
Appraisers should be qualified to conduct an appraisal by virtue of education, experience, and professional designations. Professional appraisal organizations typically specialize in providing education and professional designations for its members who meet their minimum requirements. It is a violation of USPAP to accept an appraisal assignment without having the necessary credentials to conduct the type of property to be appraised without so informing the client.
Intellectual properties are considered intangible assets which for valuation purposes must have the following characteristics: