Do I Need an Industry or a Valuation Expert?
Traditionally, there are two types of experts—industry experts and valuation experts.
Industry experts are characterized by their presence in and around the industry as well as the work they perform for the industry. These experts
- Regularly follow the industry
- Understand industry concepts and terminology
- Write/speak about industry trends
- Possess transaction experience (both external and internal)
- Regularly provide advisory services to industry participants
- See the market as typical industry buyers and sellers
Valuation experts are characterized by the work they perform as reviewed and respected by third-party auditors. Additionally, these experts’ work have been scrutinized and upheld by the IRS, PCAOB, and State & Federal Courts. Characteristics of these experts include:
- Appropriate training and professional designations
- Understanding of valuation standards and concepts
- Sees the market as hypothetical buyers and sellers
- Regularly values minority interests
- Advises on buy-sell agreements
- Defends work in litigated matters
- Handles recurring valuation work for other clients
You Need Both
Ideally, a firm that has both industry as well as valuation expertise is the smart choice. Mercer Capital is that firm. Mercer Capital has deep industry expertise and is a recognized thought leader in the valuation profession.
Check out our website for both valuation and industry resources. To discuss an issue in confidence, don’t hesitate to contact one of our professionals.