Business Evaluation Systems
reviews and complaints

Business Evaluation Systems has over thirty-five years of experience in the business appraisal industry. During that time, we have been involved in the appraisal of over 16, 000 companies worldwide. We were the first company to develop Business Appraisal Software, and our exclusive database includes input from over 450 trained Valuation Partners around the country. Over 60% of the business transfer industry has used or still uses our software. Our experience has qualified us to meet the requirements of the Appraisal Foundation, the Internal Revenue Service, lending institutions, and courts of law around the country. Regardless of the personal opinions held by the author of the original complaint, our appraisals have consistently withstood scrutiny from lenders and business owners alike.

We perform business appraisals for individuals and business brokers across the country. In those instances where we are contracted by a brokerage firm, we have no agreement with the business owner. In addition, as we are an entirely separate entity from the brokerage firm, we do not have any influence over their business practices or fee schedules.

Many of the issues raised in the original complaint seem to originate from a misunderstanding of the appraisal process. Our appraisals are typically based on a company’s most recent three to four years of financial information. Although we try to obtain the most accurate data available, we must ultimately rely upon the financial documentation provided by the business owner. It is unclear with whom the author would have us “verify” the financials, as every piece of information used in our appraisal would have come directly from him. In addition, Business Evaluation Systems is not an accounting firm, and we therefore cannot offer auditing services (nor do we claim to).

The author of this complaint also misunderstands the purpose of the appraisal that was performed. Our company was contracted to complete a business appraisal only. A site visit is not necessary for this type of appraisal, as we can legitimately accept the business owner’s assessment of his or her own property. We can also incorporate a separate real estate or machinery and equipment appraisal into our report. Business Evaluation Systems does not provide real estate appraisal services, and although we do employ certified machinery and equipment appraisers, we were not contracted to complete a machinery and equipment appraisal in this case. A site visit would have been unnecessary, and the extra travel costs would have made the appraisal more expensive.

Although “boilerplate” text can often appear impersonal, it is important to understand its utility. Certain information and disclosures are required by the Uniform Standards of Professional Appraisal Practice (USPAP), and our standard business appraisal template incorporates all of those requirements in order to ensure full compliance. Again, it is impossible to discern what, if anything, the author believes to be an acceptable alternative to using boilerplate language. Writing a fresh USPAP compliant report for each appraisal would be impossible to accomplish (and illogical to even attempt), and would likely result in the omission of some important pieces of information.

The author’s assertion that his bank would not use the appraisal for lending purposes is entirely possible. The stated purpose of the appraisal was certainly “contemplation of sale”. Business Evaluation Systems does complete business appraisals for SBA lending purposes, but those appraisals are completed according to each individual lender’s specifications. Although some lenders will use an appraisal completed for contemplation of sale, many will require a separate valuation. Business Evaluation Systems has completed over 4, 000 appraisals for bank and SBA loans, over 3, 500 that have passed the scrutiny of the IRS, and two that passed the scrutiny of the World Bank. None of our appraisals have ever been rejected.

We could not verify the details provided by the author, as we cannot retrieve the appropriate file notes without knowing the specific appraisal at issue. Our records show that we have not performed an appraisal for anyone named “John” in North Carolina. We attempt to contact every business owner by telephone shortly following receipt of their file. Occasionally, if we have incorrect contact information or if a business owner never answers and/or returns our calls (and if we cannot find an acceptable alternate method of contact), we must complete the appraisal with only limited input from the business owner. In any case, if the author of this complaint ever wished to contact our office, he could have done so by using the information provided on our website or on the final report he received, or by sending an email to the address he claims to have used.

Many of the author’s misconceptions could have been cleared up in a telephone conversation or email. We regret that this individual is unsatisfied, and we offer our best wishes for his future endeavors. As always, we encourage the recipients of our appraisals to contact us with any questions or concerns they may have.

12/19/09: A pair of Colorado businessmen are accused of persuading more than 700 businesses in this and other states to pay thousands of dollars for unnecessary net-worth appraisals, Colorado Attorney General John Suthers' office said Friday.

Businessmen Tyrone Tymkovich of Aurora and Sam Levine of Castle Rock — and their businesses, Corporate Acquisition Group and Global Acquisitions Group — were named in a lawsuit filed in Arapahoe County that accuses them of convincing small-business owners that potential buyers were ready to acquire their firms and needed an appraisal.

Of the $5, 000 the men charged for their service, just $1, 000 of the fee was actually devoted to the appraisal. They also are accused of overstating their business success in order to lure clients and of giving money-back guarantees they didn't always honor.

Suthers is seeking restitution for victimized businesses and an injunction against future fraud.

Read more: http://www.denverpost.com/ci_14029427#ixzz0aRMxbEQT