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Commercial real estate appraisal business founded in 1947. Reputation excel. net owner is 5-800,000/yr. What $

What should I sell it for?

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In addition to examination of the financial statements you have to take the location of the business into consideration. An appraisal business in Santa Barbara, San Diego, or Hawaii could easily sell for 3-4x (as a multiple gross revenue) more than that of a practice in the "rustbelt". It's much more difficult to build a commercial appraisal business in more desirable locations and in the least desirable locations you can just "show up" and have business coming in the door rather quickly. There was an article published in the Appraisal Journal in the late 1980's on the valuation of a commercial appraisal business. Go to Other factors include the type of work the firm does. If it is highly specialized there will be a smaller pool of potential buyers. It's been more than 20 years since I read that article but I believe the typical range of value was 0.50x annual gross to 2.0x annual gross. You really should value this kind of business via the Excess Earnings Method. Please send me a copy of the offering details. E-mail: Regards, Stephen Bullock, MAI

Feb 24, 2010
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The BAF Group LLC

Would need to talk a look at P&Ls or Tax Returns for the last three (3) years, and get a better understanding of the operational aspects of the Company. To do otherwise is like throwing darts, blindfolded. You can perhaps hit the wall, but zeroing in on the target itself would be pure, dumb luck.

Feb 24, 2010