When potential new clients inquire about our valuation services, we are often asked how much experience we have in a particular industry. The fact is that an appraisal expert cannot focus a significant amount of time on any one industry if they want to maintain steady revenue and grow their business. There are nearly 100 major industries in which companies operate, and appraisers need to apply their skills to any or all of them to create a diverse valuation practice effectively.
Appraisers go where the opportunities take them, regardless of the industry in which their clients operate. Fortunately, if a professional valuation expert has been working for a long time, they have likely completed a certain number of appraisals in several different industries, which increases the odds they have experience in the ones they are being asked about.
Clients need to understand the distinction between industry and valuation expertise. They are two very different functions that will sometimes intersect but primarily demand professionals to focus on one or the other. As an appraiser, I find it fairly simple to develop an aggressive learning curve when working on projects within any of these industries. Combining the market research they conduct for each project and direct client communications will allow them to understand better what they need from an industry perspective to complete an effective valuation.
The standards and methodologies learned and employed by certified and accredited appraisers apply to every industry they work in. All the educational time, effort, and application of these accepted approaches are consistent for any company being valued. The more experience a valuation expert has will further reinforce the understanding that employing these methods in every project they complete will provide greater support and credibility to their analysis and reporting process.
It is important to comprehend the nuances of the industry you are valuing. There are databases and market sources that provide this kind of information at the fingertips of any appraiser who knows where to look. This data will influence the valuation conclusions and is typically based on a considerable number of comparable companies within the same industry.
In the end, regardless of the level of experience an appraiser has in any particular industry, they will be able to provide a credible and dependable valuation of your business if they hold the proper credentials that make them experts in the appraisal industry.