IBA Course 8002B – Essentials of Business Appraisal – 4 Days
Day 1 covers:
· Review. Students have an opportunity to review the principles and deliverables from 8002A and look at the case studies developed during the intersession.
· Appraisal approaches and methods. Students receive an overview of the three approaches to value and apply the asset approach to their appraisal report assignment. Students write the appraisal introduction and the asset approach sections.
Day 2 covers:
· Market approach. Students take a closer look at the market approach, including the theories and applications.
· Transaction appraisal. IBA developed the Direct Market Data Method (DMDM) of business appraisal, within the market approach. In this segment, students learn the critical applications of the DMDM, how to use market data in the appraisal of small to mid-size businesses, the important characteristics of the markets for businesses, and how to use the IBA transaction database. The database is a free benefit available only to IBA members.
· Appraisal report writing. Students write the market approach section of the appraisal report.
Day 3 covers:
· Income approach. Students take a close look at the theory of the income approach, including developing discount and capitalization rates.
· Appraisal report writing. Students write the income approach section of the appraisal report.
Day 4 covers:
· Discounts and premiums. One of the most critical elements of a business appraisal (and one of the most difficult and controversial) involves the study and application of discounts and premiums. Students are introduced to the topic and learn what to do (and what not to do) when confronted with the issue.
· Reconciliation and value conclusion. The appraisal process begins to wrap up at this stage. Students learn how to evaluate and reconcile the various indications of value that result from the application of the three approaches.
· Review for reasonableness. This section teaches students how to avoid the one mistake that is easiest to make and essential to avoid: reviewing the value conclusion for reasonableness. The easiest way for an appraisal to be attacked is to show that, regardless of the effort applied, the result is unreasonable. Learn how to check your own work before someone else discovers one of your mistakes. It happens.
· Certification. Every appraisal must contain the appraiser’s certification. Learn what to include in this important statement.
· Completing the appraisal report. Reports must be structured in a readable and professional fashion. Here, students learn how to deal with exhibits, attachments, format, and structure.
· Where do we go from here? Students have learned a great deal, but the learning process in some respects has just begun. We talk about next steps in this concluding segment.
Course Level: Intermediate
Course Author: Paul Hyde MCBA, BVAL, ASA, EA
CPE Credits: 32 hours
Class size limited to 30 registrants. Path to the CBA and AIBA credential. 
