Third-Party Appraisal
An appraisal performed by an independent party that does not have a vested interest in the transaction.
Tips
Business brokers often claim that third-party appraisals are unbiased; however, business brokers purport the benefits of third-party appraisals only because they lack the skills to perform an appraisal within their office, so they often sell these appraisals at a markup of 100% to 500%. Some appraisal companies sell an appraisal to a business broker for as low as $300 to $800, and business brokers may then charge clients between $1,000 and $5,000 for these reports.
Related Resources
Is there a difference between an appraisal and a valuation?
Is a 3rd-party business appraisal needed to sell my business?
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