We are the named appraiser in a growing number of buy-sell agreements. We have been conducting recurring valuations for businesses for many years, and have current clients with more than twenty years of continuing experience with us.
For valuation process agreements, we advocate the Single Appraiser, Select Now and Value Now option. The business appraiser is named in the agreement, and is engaged to provide an initial appraisal for purposes of the agreement. Appraisals are then provided annually or every other year to set the price for the agreement.
Because the appraisal process is exercised at least once, or on a recurring basis, the appraisal process should go smoothly when employed at trigger events and be less time-consuming and less expensive than other alternatives.
For most companies, the cost of the appraisal process is insignificant relative to the certainty provided by maintaining the pricing provisions of the buy-sell agreement on a current basis.
Contact a Mercer Capital professional to discuss your buy-sell agreement in confidence.
Articles , Buy-Sell Agreements