Based on our experience, multiple appraiser process agreements seem to be the norm for substantial private companies and in joint venture agreements among corporate venture partners. The standard forms or templates found for process agreements at many law firms include variations of multiple appraiser processes. As business appraisers, we participate in multiple appraiser buy-sell agreement processes with some frequency. Because of the reputation of our senior professionals and our firm, we are called into valuation processes around the country. Both single appraiser and multiple appraiser process agreements have several potential disadvantages. Depending upon the type of process agreement, they might include:

• The price is not determined now but upon the occurrence of a trigger event
• Potential for dissatisfaction with the process, the result, or both, for all parties
• Danger of advocacy with multiple appraiser agreements
• Considerable uncertainty regarding the process
• Considerable uncertainty as to the final price
• Process problems are not identified until the process is invoked
• Expensive
• Time-consuming
• Distracting for management
• Potentially devastating for shareholders