Appraisal Services

A business appraisal is a "supportable opinion as to the value of an asset or all of the assets of a business." The reasons for needing an appraisal are as varied as the clients requesting them. They are used for a multitude of purposes, including determining the value or worth of a business for succession planning, sale or purchase, estate planning or settlement, mergers or acquisitions, marital proceedings, litigation, financing, insurance, setting stock value, and buy/sell agreements.

There are many benefits to be derived from a business appraisal provided by a qualified independent business appraiser. Such an appraisal does not replace the work of an accountant or attorney. Rather, an independent appraiser can provide a unique perspective which can be used in conjunction with accounting and legal advice. Capable accountants or attorneys are able to evaluate the quality and practicability of an appraisal, but seldom possess sufficient specialized knowledge of a particular business needed to appraise its true value. Our appraisal can help them and you make better decisions.

American Funeral Consultants offers six types of appraisals based on three to five years of financial statements, tax returns, profit or loss statements, and balance sheets. We base your appraisal on relevant market data using accepted methods of appraisal to determine the fair market value of your funeral business.

In addition to the financial information we will need, you will receive a Data Request Survey that will provide us with important information about your business.

Often, it is possible to carry out an appraisal from the firm's books and records alone; however, sometimes it is necessary or beneficial in judging the overall value of the firm to be familiar with its physical facilities and to carry out a community market analysis, including a formal site visit. Then the report will include a detailed description of the firm and the community it serves and incorporates observations. The appraisal also includes detailed demographic information and an assessment of the market area, evaluating the stability and growth potential of the business.

  1. Letter Report
    This is a statement which presents a single estimate of value for the business based on three years of financial data. It is approximately two to three pages in length. A community market analysis including a formal site visit is optional, but not common with a Letter Report.

  2. EBIDT Report
    (Earnings Before Interest, Depreciation, & Taxes)
    This is often recommended as a first step toward the contemplated sale or purchase of a business. Through a specialized income or investment value approach, the Report specifically determines a sale or purchase price that we deem fair and reasonable for the business, and typically includes the real estate. This approach uses a firm's earnings as the basis for establishing its value. The general principal is based on income analyzed according to the dividend-paying or "earning" potential of the revenue of the business. An EBIDT Report is typically based on three years of financial data. It includes a discussion of the overall desirability of the firm, as well as a service-by-service contract analysis. In addition, we include relevant demographic information and recommendations to assist in a sale or purchase, such as financial changes necessary or advantageous for new management or ownership.
  3. Abbreviated Appraisal
    This Report is a narrative appraisal using at least two methods of evaluation based on three years of financial data. It often is used for internal purposes or as an update of a previous appraisal. A community market analysis including a formal site visit is optional.

  4. Regular Appraisal
    At least three methods of evaluation based on five years of financial data are used in this comprehensive narrative appraisal. The text describes the steps used to derive the various estimates of value and explains the financial tables which analyze the business. A Regular Appraisal includes a discussion of the business operation, comments and suggestions about the various elements of business worth, and recommendations to assist in decision-making. A community market analysis including a formal site visit is common with this Report.
  5. Expanded Appraisal
    This extensive narrative appraisal utilizes four to five methods of evaluation based on five years of data. It includes all of the items in a Regular Appraisal Report, as well as extra explanatory discussion, including Return on Investment (ROI) and Price Earnings. Additionally, it offers an in-depth discussion of the methodological procedures, their application, use and meaning, and a justification of the various appraisal techniques utilized. A community market analysis including a formal site visit is usually required with an Expanded Appraisal.

  6. Litigation Appraisal
    This Report goes beyond the scope of the Expanded Appraisal, addressing the specific requirements of the case. An Appraisal Report that involves litigation or potential judicial action requires a community market analysis including a formal site visit.

All of our six types of Appraisal Reports may discuss the firm's real estate. In most cases, we carry out an imputed real estate appraisal which we base on an income approach. However, for some circumstances, it may be advisable to procure a real estate appraisal from a qualified local real estate appraiser. If this is the circumstance, we will notify you.

Our business appraisals can be prepared to cover a specific time-frame often required for legal purposes such as the settlement of an estate, an audit, or lender requirement.

In addition to the appraisal charge, direct out-of-pocket expenses such as travel, overnight delivery, copies, etc., will be billed upon completion of our assignment.

Appraisal Fees

Letter Report $3,255.00
EBIDT Report $5,250.00
Abbreviated Appraisal $5,250.00
Regular Appraisal $5,775.00
Expanded Appraisal $6,560.00
Litigation Appraisal $10,000.00
(minimum fee)
Multiple Branch Appraisal Quoted Upon Request
Community Market Analysis
(includes a formal site visit)