Services
Appraisal
 Our research and analysis for most clients constitute an
Appraisal. This highest level of appraisal work requires that the
appraiser consider all information available and deemed to be
relevant at the appraisal date, conduct appropriate procedures,
and consider the pertinent conceptual approaches in a particular
situation. The result is the appraiser's opinion of value. This
highest level of work should satisfy the requirements of the
courts, Internal Revenue Service, government agencies, and others.
BVS-I states in part:
The objective of an appraisal is to express an unambiguous opinion
as to the value of a business, business ownership interest, or
security, which opinion is supported by all procedures that the
appraiser deems to be relevant to the valuation.
Limited Appraisal
By contrast, a Limited Appraisal expresses an estimate of value
and is based on less rigorous analysis in some areas. The
appraiser considers limited information and conducts limited
procedures to reach a conclusion. The valuation is based on the
conceptual approach or approaches deemed most appropriate by the
appraiser. In many cases, the depth and quality of work in a
Limited Appraisal may satisfy the requirements of courts and
government agencies. BVS-I states in part:
The objective of a
limited appraisal is to express an estimate as to the value of a
business, business ownership interest, or security. The
development of this estimate excludes some additional procedures
that are required in an Appraisal.
Calculations
The Business Valuation Standards of ASA also describe a third
level of work called Calculations. This level of work results in
neither an opinion of value nor an estimate of value. Instead, the
appraiser collects less information and performs limited analysis
and valuation work. This type of work may be appropriate in cases
where a fully documented report and potential expert testimony are
not needed.
ESOP Appraisal Review
The Trustees of an Employee Stock Ownership Plan are charged with
the responsibility for determining the fair market value of common
stock shares in the ESOP Trust. The Trustee typically hires a
business valuation firm to appraise the shares for participant
accounting and allocation purposes. Since most Trustees are not
experts in valuing closely held stock, it can be difficult to
assess the quality and completeness of an ESOP stock appraisal
report. Centerpoint Advisors reviews business appraisal reports to
provide the Trustee with an expert opinion on the reasonableness
of the ESOP stock appraisal. Jeffrey Wright has been appraising
ESOP shares for more than 20 years. He has also reviewed many
appraisal reports of applicants seeking professional designations
from the American Society of Appraisers and served as Chairman of
the Standards Subcommittee.
Business Performance Review
Many business owners who spend all of their time running the
company can benefit from an independent review of historic
performance by an experienced financial analyst. Centerpoint
Advisors provides a Business Performance Review that analyzes
financial results and compares them to similar firms. Are profit
margins below average? Is revenue-per-employee too low? Could
profitability be improved by reducing the amount of working
capital? A Business Performance Review can answer these and many
other questions while making recommendations for improvement.
Expert Testimony
In matters of potential or actual litigation, Centerpoint Advisors
can assist in negotiations through the preparation of financial
analysis and appraisal. If a case proceeds to deposition or trial,
the appraiser is prepared to appear as an expert witness. In many
cases, our research, analysis and conclusions are important
factors in helping clients reach a settlement prior to trial.
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