Appraisal Review

Delphi has the experience, qualifications, certifications, and resources to tackle the nearly any appraisal review engagement. We provide reviews for:

  • Litigation – We provide second opinions, reviews, or critiques on a client’s expert report or reviews of opposing side’s expert report in many litigation matters, often on a consulting basis for attorneys.
  • Financial reporting – We provide assistance to accounting firms with limited valuation personnel or on complex or unusual valuation issues to review valuations completed for financial reporting purposes.
  • ESOPs – One of the most important fiduciary responsibilities of an ESOP Trustee is to establish the annual ESOP stock price. This starts by hiring a reputable, competent and independent valuation firm for purposes of establishing the fair market value of the Sponsor’s stock, since a business appraisal is required each time the price of ESOP shares is determined. As most anyone in a professional capacity would agree, a second set of eyes simply picks up things that the first set of eyes may miss. Having a business valuation report reviewed by an independent appraiser on a periodic basis is a healthy exercise and is a prudent step to take when an ESOP is in place. This additional due diligence is an essential step for a Trustee to carry out in performing their duties as an ERISA fiduciary, with the interest of the Plan’s participants/beneficiaries in mind.

With over 1,500 valuations completed internally since 2001 as well as experts with experience reviewing valuations at large accounting firms, coupled with professionals who have earned their Accredited in Business Appraisal Review (ABAR) designation, Delphi has the expertise to evaluate the work of our peers to assess the credibility of their opinions. Although the review process varies greatly depending on the engagement, we most frequently consider the following factors in assessing the work of others:

  • Methodologies – the reliance upon (or the omission of) certain methodologies can have a significant impact on the range of values considered by an appraiser.
  • Relevance and Reliability – the valuation of privately held business requires a large degree of subjectivity as well as analysis. We can perform the due diligence to confirm that the assumptions relied upon have a reasonable basis as well as support the conclusion of value.
  • Standards and Disclosures – a valuation report that either fails to meet the appraisal standards or one that lacks adequate disclosures and transparency is highly vulnerable to critique in a litigious or tax-related situation.