As accredited appraisers, we are frequently asked how experienced we are in a particular industry when potential new clients inquire about our expertise. Most appraisers are considered “generalists” and cannot afford to focus a significant amount of time on any one industry if they want to maintain steady revenue and grow their business. There are numerous industries in which companies operate, and it is important for appraisers to apply their skills within all of them to create a diverse valuation practice.
Appraisers go where the opportunities take them, regardless of the industry in which their clients operate. If a valuation expert has been working professionally for a long time, they have likely completed a certain number of appraisals in many different industries, which increases the odds they have experience in the ones they are being asked about.
It’s important for clients to understand the distinction between industry and valuation expertise. They are two very different service provider segments that will intersect at times, but will demand professionals focus their expertise on one or the other. As an appraiser, it is not difficult to become generally well-versed in the industries in which they work when conducting appraisals. Combining the market research developed for each project with direct client communications enables them to understand 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 and effort, as well as the application of these accepted approaches, are consistent for any company being valued. The more experience a valuation expert has, the more it will reinforce the understanding that employing these methods will provide greater support and credibility to their analysis and reporting process.
It is important to understand the nuances of the industry in which you are valuing. There are databases and market sources that provide this kind of information at the appraiser's disposal, if they know 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.
Regardless of an appraiser's level of experience in any industry, they can provide a credible, supportable valuation of your business if they hold the proper credentials that make them experts in the appraisal industry.