Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Third-Party Appraisal

Definition

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?