Buy-sell agreements are often silent regarding the qualifications of the appraiser(s). This is particularly true of agreements signed in the 1980s and 1990s, or even into the 2000s, many of which have not yet been tested by trigger events. Several aspects of appraiser qualifications should be considered. It can be beneficial for the parties to go through an appraisal selection process at the outset of buy-sell agreements. The logical requirements become fairly apparent as parties begin to consider individual business valuation professionals and business valuation firms. Danger, in the form of future angst and uncertainty, arises for the operation of buy-sell agreements when qualifications are not specified.

Qualifications of Appraisers. Business valuation firms do not render business valuation reports – business valuation professionals do. Therefore, it is also important to consider the qualifications of the individual appraisers. Evaluation of the qualifications of business appraisers can include consideration of a number of distinguishing factors, including:

• Education
• Valuation training
• Appraisal experience
• Industry experience
• Continuing education
• Publications
• Credentialing
• Expert testimony experience
• Required compliance with professional standards
• Speaking

Qualifications of Business Valuation Firms. When selecting an business valuation firm it is desirable that the firm (or, at least, its legitimate successor) will be around when future trigger events occur. It may be a good idea to describe the qualifications of business valuation firms in the context of their size and longevity, as well as the scope of their business.