What is the difference?
A business appraisal and a business valuation are two different things.
A business appraisal is a professional opinion of the value of a business based on a specific purpose or set of circumstances. It may be requested by a business owner, lender, or investor for a variety of reasons, such as determining the value of a business for estate planning purposes, assessing the value of a business for lending or investment purposes, or resolving disputes related to the value of a business.
A business valuation, on the other hand, is a detailed analysis of a business that is conducted by a professional business valuator. It involves the use of various methods to determine the economic value of a business, such as the income approach, the market approach, and the asset approach. A business valuation is typically more comprehensive than a business appraisal and is often used in situations where a more in-depth analysis of the business is needed, such as when buying or selling a business.
In summary, a business appraisal is a professional opinion of the value of a business, while a business valuation is a detailed analysis of a business conducted by a professional business valuator.
