Business Valuation Insights: How to Identify a Qualified Business Appraiser

Why Business Owners Need Qualified Appraisers

In today’s dynamic and fast-changing business environment, determining the value of a company can be both strategic and complex. Whether due to regulatory expectations, financial reporting obligations, or transaction planning, having a defensible and well-prepared valuation is critical. Working with a qualified business appraiser is essential for reducing risk, meeting compliance requirements, and ensuring decisions are backed by reliable analysis.

This article outlines what it means to be a “qualified appraiser” and why that distinction matters for any business owner or advisor seeking a credible valuation.

Who is a qualified business appraiser? A guide for business owners and advisors

As discussed in our article, “Why Businesses Need Qualified Business Appraisals”, valuations can play a significant role in estate planning, ownership transitions, charitable contributions, and tax reporting. According to Treasury Regulation §1.170A-17, a qualified appraisal must be conducted by a qualified appraiser. But what does that term really mean – and why is it so important to engage the right professional?

Key qualifications of a qualified business appraiser

Under Treasury Regulation §1.170A-17, a qualified appraiser is someone with documented education and experience specific to the type of property being valued. More specifically, the regulation identifies several important qualifications:

Education and credentials
A qualified business appraiser typically holds an advanced degree in a relevant field such as accounting or finance. More importantly, they hold professional certifications in business valuation – such as:

• Accredited in Business Valuation (ABV) – issued by the American Institute of Certified Public Accountants (AICPA)
• Accredited Senior Appraiser (ASA) – issued by the American Society of Appraisers (ASA)

Membership in these or similar professional organizations indicates that the appraiser adheres to generally accepted appraisal standards and commits to ongoing professional development – both of which are necessary for the appraisal to be considered “qualified.”

Experience
Experience is equally important. A qualified appraiser has significant hands-on experience valuing businesses across a variety of situations and industries. They should also have direct knowledge of the context for which the valuation is being performed – whether for tax, transaction, litigation, or financial reporting purposes. Appraisers must regularly perform valuations and be compensated for their services.

Conflicts of Interest
A qualified appraiser must also avoid conflicts of interest. They cannot be the donor or recipient of the property, nor can they have a close personal or financial relationship with either party. Additionally, they must not receive a contingent fee based on the appraised value. These provisions are designed to preserve the integrity of the valuation.

Conclusion

Hiring a qualified business appraiser isn’t just a best practice – it’s often a regulatory requirement. Without one, your appraisal may be rejected by tax authorities, putting you at risk of audit, penalties, or legal complications.

Whether you’re planning for succession, structuring a transaction, or preparing for a charitable donation, working with a qualified appraiser provides the confidence and compliance support needed to move forward with clarity.

Is your business in a need of an appraisal? Our Valuation team can help. Contact us. | 804.747.0000