Frequently Asked Questions
Why do I need an outside consultant?
The main reasons to hire an outside consultant are the following:
The valuation professionals affiliated with Valcon Partners, Ltd. perform valuations and consulting on a full-time basis. Since many of these professionals have experience with major accounting firms and other consulting organizations, they provide more than simply a value conclusion. They understand how their value conclusion impacts your bottom line and can effectively communicate the results of the valuation to various end users.
Lack of Time
You and the employees of your company are operating a business and the main goal of that business is to make a profit. Time spent performing tasks such as inventorying assets, reconciling asset registers, setting up asset tracking systems, analyzing data for tax appeals or insurance reporting and other tasks take away from time which can be spent conducting profit-making activities. Also, it has been our experience that projects such as those listed above which are performed by internal personnel are likely to be postponed or abandoned due to the day to day demands of operating a business. The consultants affiliated with Valcon Partners, Ltd. are dedicated to the project and will complete it in a significantly shorter time than if the same project were performed by internal personnel.
Our independence allows us to provide services to a wide range of clients without those clients worrying about conflicts of interest or other independence issues. This is a significant issue, especially today, as many transactions and relationships are undergoing significant public, government, and industry scrutiny.
Outside consultants such as those affiliated with Valcon Partners, Ltd. bring a fresh eye to internal projects and can provide a non-partisan analysis and solution to a problem.
The professionals affiliated with Valcon Partners, Ltd. are held to the highest professional and ethical standards due to their memberships in various professional associations such as the American Society of Appraisers and other professional associations. Also, all projects completed by Valcon Partners, Ltd. are completed in conformance with the Uniform Standards of Professional Appraisal Practice (“USPAP”) published by the Appraisal Standards Board and the Principles of Appraisal Practice and Code of Ethics of the American Society of Appraisers.
Why is it important to hire and ASA or RICS accredited appraiser?
Accredited appraisers, such as those holding the Accredited Senior Appraiser (“ASA”) designation provided by the American Society of Appraisers, are held to a higher standard. ASA designated appraisers are bound by the Uniform Standards of Professional Appraisal Practice (“USPAP”) published by the Appraisal Standards Board and the Principles of Appraisal Practice and Code of Ethics of the American Society of Appraisers.
RICS designated appraisers are bound by a series of appraisal and valuation standards known as “The Red Book,” which governs the way an appraisal is performed and how the appraisal report is written. In addition, they are required to continually update their education and to re-accredit their designation every five years.
For more information on the American Society of Appraisers, The Royal Institution of Chartered Surveyors, USPAP and other applicable subjects, please visit our Links Page.
Why is the ASA or MRICS accreditation a benefit for you as a client?
Utilizing an ASA or RICS accredited appraiser provides you with assurance of the following:
- The appraiser will provide a truly unbiased opinion of the value of the asset or assets being valued
- The appraiser is performing an independent consulting project or valuation
- The appraiser is performing the valuation or consulting project in an ethical and competent manner
- Confidentiality will be maintained
- The report produced and the values concluded will be adequately detailed for the stated purpose, will be reliable and accurate, and will not be misleading
- The appraiser is not being compensated based on the value concluded
- Due to the continual education requirements, the appraiser is keeping up to date with the latest valuation techniques and processes
- The appraiser will consider all of the relevant approaches to value and will use the appropriate approach for the valuation of the asset or assets
- The appropriate market place and highest and best use of the asset or assets will be considered
- Adequate detail to support the valuation conclusions will be maintained for a period of at least five years or two years after the final disposition of any judicial proceeding in which testimony was given (whichever is greater).
How do I go about deciding on a valuation or asset consultant?
Before the decision is made to hire a valuation or asset consultant, you want to make sure that they truly understand the significance of the project at hand, the steps necessary to complete the engagement, and will provide a meaningful deliverable in a timely manner. The answers to the following questions will assist you in evaluating potential consultants.
- Is the person just an “appraiser” (i.e. will they simply provide a “value”) or are they a business consultant who understands the “big picture”?
- Does the consultant have experience in a variety of different engagements and occupancies and, in particular, our situation?
- Will the consultant communicate with us on a frequent basis so we will avoid surprises and will understand the progress of the project on an ongoing basis?
- Is the consultant independent and unbiased?
- Is the consultant accredited and is their work product produced under professional guidelines?
- Will the work produced by the consultant be supportable, reproducible, and well documented if a challenge arises?