The value of a company is determined by the economic return or the return the buyer expects, out of the investment. For his or her part, the seller is interested in obtaining the highest possible return, where one of the possible results is an available market price, in case there are transactions with similar characteristics. The question is what happens in cases where there are no similar transactions that can be compared and what happens when the seller identifies unique characteristics in the business being sold. This is where the appraisers come to the assistance of sellers and buyers. They explain why a certain price is reasonable for both and prices that are not. Anyhow, in the context of negotiations, the commercial part is considerably important as well as emotional elements.
For example, let’s assume that the seller believes his business has a high potential compared to other competitors and asks for a higher price. The appraiser will examine the basis for the seller’s belief and inform the parties if there is a certain feasibility or not.
Accounting valuation deals with property value according to the balance sheet as of a certain day (including market price), but in a dynamic and active business, the existing and expected business results are important. Business results can be contemporary or expected and the role of the appraiser is to see how goals and objectives can be achieved in a way that will allow the buyer to realize the business potential and even improve it. There is no single formula here and the more skilled the appraiser is, he will determine the appropriate route for the buyer, so that the seller can realize his desire to charge a higher price. Our company specializes in valuations, both in the accounting-assets field and in finding the right route to realize the business potential, so sellers can feel confident about the price they demand, even if it is higher than the market price. They will be able to achieve it with greater certainty. On the other hand, buyers will receive a reliable and fair service that will allow them to purchase the business at an appropriate price, and to get a reasonable return.
