Mercer Capital:  “The Single Appraiser, Select Now and Value Now buy-sell agreement valuation process is the one I recommend for most successful closely held and family businesses.  I prefer this single appraiser process as the best available alternative for fixed-price, formula, and multiple appraiser agreements.

In the Single Appraiser, Select Now and Value Now, the appraiser is not only named in the agreement, but he or she is engaged to provide an initial appraisal for purposes of the agreement.
  • Select now. I have long recommended that parties creating buy-sell agreements name the appraiser at the time of agreement. This way, all parties have a voice and can sign off on the selection of the appraiser no matter how difficult the process of reaching agreement.
  • Value now. Once selected, the chosen appraiser provides a baseline appraisal for purposes of the agreement. I suggest that the appraisal be rendered in draft form to all parties to the agreement, and that everyone has a reasonable period of time to provide comments for consideration before the report is finalized.
  • Value each year (or two) thereafter.  Ideally, the selected appraiser will provide annual revaluations for buy-sell agreement purposes.”