I received a telephone call today from another business appraiser. I met
him at a conference several years ago and this was the first time I had
talked to him since. He explained that he had performed a business appraisal
for a buy-sell agreement. It is not unusual for buy-sell agreements between
owners to require one, or more, valuations as part of the process of buying
out one of the owners. In this case, a second valuation was performed,
and since the parties could not agree on a purchase price from those two
valuations, a third appraiser is to be called in.
This acquaintance explained that the second valuation was poorly done and
that he was recommending that I come in as the third appraiser. He specifically
said he was recommending me because he had been to my website, had seen
my sample report, and was impressed with the quality of my work. This
is not unusual. I have been approached by CPA firms and other valuation
professionals to step into situation where the previous work was substandard.
It is nice to be recognized for doing quality work, but many times, these
situations require untangling a mess created by someone else. The take-away
from this is you get what you pay for, and it’s better to do it
right the first time.