Business Valuation FAQ

4. How much does a business valuation cost?

The straight answer is, “it depends”. A competent appraiser cannot quote an exact fee without understanding purpose of the valuation, the users of the report, the nature of the business, and other important considerations. Many appraisers will quote a flat fee for a particular type of project in order to give the client some cost certainty, while some valuation experts charge on an hourly rate basis.

Regardless, the business appraisal process is rarely quick, simple or cheap. This should come as no surprise, given the significant financial and legal consequences involved with the need for a business valuation.

For a business appraisal, the profession’s ethical and professional standards forbid an appraiser from working on any kind of contingent fee basis due to the obvious conflict of interest that such an arrangement would create. However, when acting as a consultant or transaction advisor (and not as “an appraiser”), a contingent fee arrangement is common.

5. How long does it take to conduct a business valuation? | Back to Business Valuation FAQ