The main goal of a valuation is to provide an objective and defensible estimate of an asset’s fair market value, which is the price a willing buyer would pay to a willing seller in an arm’s length transaction. This unbiased assessment empowers informed financial decisions.

Valuation reports are based on estimates and market data available at the time of the valuation. The actual market value might fluctuate due to unforeseen circumstances. Additionally, the report reflects the appraiser’s judgment and interpretation of data, which can vary slightly between qualified professionals.

Valuing an asset requires a qualified appraiser to consider its characteristics, market data (comparable sales), valuation methodologies (income, market, cost approach), and current market trends to arrive at a fair market value.

There’s no single “best” technique. The most appropriate method depends on the asset type and available data. Often, a combination of income, market, and cost approaches is used to provide a well-rounded valuation.

A qualified valuer is a professional with relevant education, experience, and certifications in valuing specific asset types (e.g., businesses, and real estate). They adhere to recognized valuation methodologies and ethical standards.