BUSINESS APPRAISAL 1

You (the learner) appraise the property. Mr Smith is the owner of a shop that supplies spare parts for automobiles. Mr Smith is immigrating to some other country and wants to sell his business before moving. As an appraising agent, you have been given a job to confirm the client's requirements and instructions for business appraisal and discuss agency requirements and the business appraisal process. Obtain agreement to process with the appraisal process. Analyse required documents, reports and financial data of the business. Analyse current market data and verify its accuracy and reliability. Select a suitable business appraisal methodology. Formulate an appraisal report incorporating the details and history of the business, current market trends, details of the methodology selected and the appraisal outcomes. Submit this report for the assessment. Use this template to record details of the process.

Nature of business

Number of employees

Business Appraisal methodology

Market trends

Industry benchmarks

for appraisal

Accounting technique used for appraisal

Were any of the following undertaken? (If so provide details)

Did you confirm the client's requirements and instructions?

Did you confirm the status and ownership of the business?

Did you obtain an agreement for business appraisal?

Did you access the documents required for appraisal?

Signing agency documents

Communication with stakeholders

Record keeping of all the documents

Analysis of market trends

Provide details of the methodology adopted for business appraisal

Conclusion/Out comings of the appraisal

What recommendations would you make to your organisation to ensure future compliance

and ethical operation?

Recommendations: