In this phase the valuation analyst performs varous valuatoin calculations and makes judgements on the weighting to be assigned to the results obtained from the various approaches and methods. Care is exercised to determine that the estimate of value is for the ownership interest being valued.

Some valuatoin methods result in a "control-value", or the value of a 100% ownership interest in the company. If the objective is to determine the fair market value of a minority-ownership interes, then the appriaser typically applies a discount for lack of control to the "control-value" to adjust it to a non-controlling ownership interest. Other appraisal methods result in a "minority-ownership" (less than a 50% ownership interest). In this case, if a 100% ownership interest is being value, then a "control premium" is applied to the minority-ownership interest to adjust it to a "control-level" value.

The valuation analyst will usually apply judgmental weightings to the estimates of value determined using several approaches and methods. Various factors that are relevant to the specific company and purpose of the appraisal are considered in assigning weightings. The rationale behind the weightings assigned are explained in appraisal report.

We strive to find a balance between applying judgment and using a purely mathematical approach when assigning weightings. Our valuation analysts consider specific risks inherent with the ownership interest to determine how much weight to assign to the variouis results using multiple methods.

It is important that you understand that the value estimate will be different if a different appraisal date is used. For example, if an appraisal update is required at a date that is one year later than the original appraisal is performed, the appraiser must obtain updated financial information on the business and update the trend analysis, the estimated rate of return a hypothetical buyer would require when purchasing the ownership interest, and all other factors considered. The value estimate will usually be a different amount at different appraisal dates. Therefore, an appraisal update is requried with a separate agreement to provide a new appraisal of your business and the ownership interest being appraised.