Interview policyholders and pay-out small insurance claims.
A Valuation Consultant — otherwise known as a Business Valuator or Business Appraiser — puts price tags on the most prized possessions of Business Owners: their companies. That’s not such a simple job. While some things are easy to appraise — gold, for instance, jewelry and antiques — others are decidedly more difficult to value because they’re priceless to their owners. For Entrepreneurs, especially, one of those things is their business.
Still, when you’re a Valuation Consultant, you’re up to the challenge.
There are many reasons for appraising a business. Perhaps the owners want to sell it. Maybe they want to bequeath it to their children, or transfer their share of ownership. Or it could be that they’re involved in a lawsuit with someone they believe has damaged their company.
Regardless of the reason, your client needs a number — and you’re paid to give them one. Of course, there’s more to it than that. You don’t just pull a number out of thin air, after all. Instead, you use standard formulas and techniques — requiring you to analyze the company’s existing assets, liabilities, cash flow, and tax burden, as well as its future financial projections — to arrive at an educated guess that’s based on business characteristics and market conditions.
Sometimes, Valuation Consultants also act as Business Brokers, advising clients on the value of a business, then helping them negotiate either a purchase or a sale. In that case, you’re as much an adviser as you are an Appraiser.
Whether you just value the asset or broker the entire sale, your role is simple: You interpret emotional investments as economic assets.