BUSINESS APPRAISALS Fees for business appraisals are dependent on the required hours to produce the actual and appropriate type of business appraisal report. The greater potential for scrutiny of a business appraisal results in higher fees as a result of the additional work required for extensive and detailed reports. The quality, analysis and final appraised value are the same for a Level II and Level III business appraisal. The difference is that some appraisals need to be "self-contained", or in other words a Level III business appraisal needs to stand on its own and include all pertinent analysis and factors for a given business appraisal.
To clarify, a Level II appraisal would be a shorter version of a Level III report at approximately 25-40 pages in length and appropriate for matters as an S Corporation Conversion, some marital dissolution matters, estate taxation for smaller businesses or a business loan application. Conversely, a Level III business appraisal would be very detailed and generally be upwards of 50 pages. This Level III type of appraisal would be appropriate for matters as estate and gift taxation, condemnation, and partnership disputes with litigation potential.
Level I business appraisals are generally from 10-25 pages and are limited in scope and analysis. These Level I appraisals can be appropriate for financial planning purposes or for setting a listing price of a business that is to be sold. Below are guideline fees of the three levels of business appraisals that are offered by the H H Appraisal and Brokerage Company. Additionally, examples are given for the appropriateness of each type of appraisal.
Please do call to
discuss fees for your particular business valuation needs (Hector Monge,
CBA; Phone No. 619-302-6200 or 530-370-1905).
LEVEL I $800 TO $1,400
Acquiring or selling a business interest
Buy-Outs
Buy-Sell Agreements
Exit Planning
Financial Planning
Charitable Contributions
LEVEL II $1,700 TO $2,500
Business Purchase or Sell, with more detail and analysis
Mergers and Acquisitions
Loan Applications (debt and equity financing)
Buy-Sell Agreements, with more detail and analysis
Annual Reviews
Strategic Business Planning
Unchallenged Divorces
Ownership Transfers
Buy-Ins
Exit Planning, with more detail and analysis
Initial Public Offerings
Roll-Ups
Fairness and Solvency Opinions
S Corporations Conversions
Estate Planning
Granting of Stock Options
LEVEL III $2,500 TO $3,500
IRS Returns
Gift and Estate Taxes
Partnership Disputes
Employee Stock Ownership Plans (ESOPs)
Buyer, Seller, or other party requiring or wishing to have a very detailed report
Creation of Family Limited Partnerships
Ad Valorem Taxation
Bankruptcy
Condemnation
Breach of Contract
Divorce
Shareholder Actions
Other Issues Related to Damage Determinations.
BUSINESS BROKERAGE
When one sells a business the business owner normally pays a fee to the listing broker (Seller's representative) and a fee to the buyer's broker (buyer's representative). If the listing broker finds a seller without the services of another broker, the listing broker becomes both the listing broker and buyer's broker. Fees vary depending on the listing and purchase price of a given business, but typically fees calculate to a total of 8-10%, which includes the fees for both the listing broker and buyer's broker fees.
REAL ESTATE APPRAISALS
There are many types of real estate appraisals and for this reason fees vary. Below is a guidline for real estate appraisals. Please call for a quote.
SFRs, CONDOS AND PUDS $400 FOR VALUES OF UP TO $600,000 $500 FOR VALUES OF UP TO $900,000 $700-$800 FOR VALUES OVER $900,000
RESIDENTIAL INCOME UNITS 2-4 UNITS FROM $700 MULTI-FAMILY OVER 4 UNITS FROM $850
COMMERCIAL PROPERTIES BY QUOTE
REAL ESTATE BROKERAGE
Similar to business brokerage services, when one sells a real estate interest the owner normally pays a fee to the listing broker (Seller's representative) and a fee to the buyer's broker (buyer's representative). If the listing broker finds a seller without the services of another broker, the listing broker becomes both the listing broker and buyer's broker. Fees vary depending on the type of realty involved. The selling of a home will typically incur a total fee of 5-6%, which includes both the listing broker's fees and the buyer broker's fees. Vacant land can have total fees at approximately 10%. For commercial, industrial, agricultural, environmental mitigation land and other special use real estate please call the H H Appraisals and Brokerage Company for a quote.
BUSINESS AND REAL ESTATE CONSULTATION BY QUOTE. Please call for consultation.
