Business appraisers are better prepared to provide valuations now than during the last downturn

“Since we’ve lived through the ‘irrational exuberance’ of the 90’s, are we already prepared for this downturn?” Rob Burkert (Burkert Valuation Advisors) asks 400 appraisers at the AICPA National BV Conference.   There’s lots of evidence he points to that the profession is better able to withstand valuation volatility.   First, he points to the long term analysis of equity risk premia of the type Roger Grabowsky (and many others) have done.  “There’s more and more support for ERP staying within a two hundred basis point range,” Burkert says.  If that isn’t enough, the increase in professionalism among appraisers also helps stave off unduly market sensitive conclusions of value.  “There’s a lot more science available for us than there was the last time the economy sank.”