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Also, if the business transaction Job Function Email List requires the buyer to obtain third-party finance, the business valuation will help all parties work through that scenario. Job Function Email List Some lenders will require their own appraisal that they order; others will work with the third party appraiser if the skills and certifications of the Job Function Email List appraiser meet their standards as well as the quality of the appraisal. Some final good reasons Job Function Email List for an appraisal are that it also helps and gives confidence to the buyer about the business and Job Function Email List any advisors the buyer chooses to use.
The buyer is always the most Job Function Email List nervous party in the transaction as they have the most to lose personally, financially and professionally. The greater their Job Function Email List confidence the more likely they are to continue with their inquiry. Sellers forget that buyers have many options including just saying no and not Job Function Email List buying a business. If you are a business buyer and you find two businesses that are of interest to you and one Job Function Email List has done a valuation and one hasn't; which do you think would be more attractive to make further inquiries about?
Same question but instead of being the buyer, put your feet in the shoes of a lender. A buyer brings you two businesses they want to buy and need a loan with one having a business valuation and one not, which business do you think the lender will spend Job Function Email List more time considering for a loan? A business valuation is an important aid to all parties in the transaction. A business valuation normally refers to the appraisal of a business as a going concern. If the business includes real estate, this would be appraised separately from the business.