Appraisal for Business Valuation
	For an appraisal method to work it must address the following:
	The profitability of the business The tangible assets of the business The presence of intangible assets The value derived should represent the market value Have flexibility to allow for the terms of the sale Simplicity - Usable and understandable
	Components in a business that have value:
	A functioning business with modest growth Skilled employees Working equipment Adequate usable inventory A quality product or service A profit Collectable receivables A broad customer base with no very large customer Some new product development capabilities A good reputation (name) in the market place A clean, adequately sized work area A financially sound operation with a good accounting system The business located correctly for its market place A good base of suppliers
	Profit and asset based components:
	Profit based items business profit a functioning business business size - gross sales intangible assets skilled employees a quality product or service a broad customer base - customer list new product development capabilities a good reputation - business name good financial management Asset based items inventory patents equipment trademarks receivables real estate contracts

Business Appraisal Purpose of Business Appraisal
	Sale of business Purchase of business Shareholder buy outs Business loans Estate valuations Business performance evaluations Divorce proceedings IRS required appraisals Other legal requirements
	Business Appraisal Format
	Cover Page Index Appraisal Details Business Appraisal Summary Business Appraisal Methodology Resume of Robert A. Klein Appraisal Information Form Copies of Documents Used for the Appraisal