It is helpful to understand some of the more common purposes of appraisal of businesses. In all of the instances cited below, a professional appraiser may not be employed, or even desired. In all cases, however, the methods and techniques of the professional appraiser can be helpful, and virtually essential, in developing realistic values which can be defended.

• Sale or purchase of a business

• Allocation of purchase price...how much is real estate; how much is inventory; how much is goodwill; etc.  Knowing these numbers can save you income taxes.

• Divorce

• Sale of a business asset

• Estate and inheritance taxes

• Gift tax

• Spinoff of part of a business

• Determine true return on investment

• Dissident owner

• Liquidation of a business

• Condemnation by a government body

• Inverse condemnation cases

• Employee benefit plans

• Buy-and-sell agreements between owners

• Financing purposes

• Certain property taxes

• Assessment tax appeals

• Other purposes for business appraisals