It’s not uncommon for two business valuation professionals to arrive at different conclusions about the same company’s value. When this happens, whether it’s for litigation, shareholder disputes, divorce cases, or buy-sell disagreements, one side may request a review and rebuttal of the opposing appraisal report. This process is critical to determining the strengths and weaknesses of both reports, which will assist the court further or help negotiating parties arrive at an objective understanding of the most reasonable value.
A review and rebuttal assignment will involve a critical analysis of another appraiser’s report to assess its credibility, compliance, and reasonableness. The reviewing expert identifies any technical errors, unsupported assumptions, or departures from recognized valuation standards, such as the Uniform Standards of Professional Appraisal Practice (USPAP) or the National Association of Certified Valuators and Analysts (NACVA) guidelines.
The deliverable will typically be a concise summary report outlining these findings and how potential errors impact the opposing analysis and final conclusion of value.
When two valuations differ, decision-makers such as judges, attorneys, and business owners need clarity on why the numbers are far apart. A well-prepared rebuttal provides that clarity by highlighting unsupported assumptions or unrealistic projections as well as identifying flaws in methodology, or limitations with the assumptions and approaches taken.
It’s important that the review and rebuttal ensure the discussion remains focused on analytical integrity rather than advocacy or bias. The opinions and responses should be a professional critique of the work and not toward the individual who performed it. The goal is to maintain objectivity and demonstrate analytical soundness. A credible rebuttal enhances the reviewing expert’s reputation and strengthens the overall integrity of the valuation process.
A review and rebuttal of an opposing business appraisal report serves as a vital quality control mechanism in contentious valuation matters. By identifying weaknesses, inconsistencies, and deviations from accepted practice, the reviewing appraiser helps clients, attorneys, and courts reach more reliable settlements based on fair and reasonable estimates of value.
Ultimately, a well-executed rebuttal isn’t just about defending the client’s or your own opinions but more about upholding the standards of the profession and ensuring that valuation estimates are based on sound analysis, reliable data, and objective reasoning.