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Whether by rule, regulation, or technical expertise, there are cases where a business appraiser can help a bank assess the appropriateness of a proposed loan. In this webinar, expert appraiser Franz Ross joins BVR for a look at the opportunities and challenges that lie with any valuation engagement performed for bank consumption. Through a review of standards, regulations, and assignment scenarios, Ross will address what appraisers should know to work with bank clients, their real property appraisers, and their clients. Along the way he'll address common pitfalls and how best to avoid them.
Program Agenda
The rules in the current SBA SOP and how they have changed in the past few years
Valuing invested capital versus equity
Using the cost and market approaches for allocations to A/R, inventory, FF&E, and intangibles
How two appraisers should work together when one is appraising real estate and the other, the business
Report writing best practices
Common Errors
Growth assumptions
WACC implementations
Temporarily adoption of cash held as part of the business value
Site visits and interviews
Customer concentration risk
Learning Objectives
Identify the engagements for which a bank should engage a business appraiser
Define the role a business appraiser plays in a banking assignment and how this affects the valuation process
Associate best practices with bank engagements in order to overcome common challenges
Define common errors in valuations performed for banks
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