Appraiser Questions
With the increase in legal action arising from incorrect or inconsistent valuation practices, it is important to work with a valuation firm that demonstrates three important attributes:
- Competence
- Professional Designations
- Independence
During the appraiser selection process, the following selection criteria provide a sound basis for determining the competence, professional designations, and independence:
- How long has the individual/company been performing valuations?
- How much of the individual’s/company's time is spent performing valuations?
- Approximately how many valuations does the individual/company perform per year?
- What experience does the individual/company have with the particular purpose of the valuation?
- What are the academic and professional credentials of the individuals who will be assigned to the valuation?
- Does the individual/company have any specific industry expertise?
- Who in the company will be doing the valuation?
- What is the individual’s/company's track record for withstanding challenges to its valuation opinions?
- What resources does the individual/company have for doing relevant economic and industry research?
- Does the individual/company have a personal or professional relationship with representatives of the subject company?