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What is the difference between a business valuation and a business appraisal?
April 1, 2026

Dr. Philip Baker

Business Valuation

A business valuation is prepared by a professional certified valuer. The valuation is often used to assess the overall value of the business taking into consideration strict adherence to recognised industry standards. It considers the overall performance of the business and factors industry trends, market conditions, tangible and intangible assets, and considers future, past and present financial performance. Business valuations are typically for strategic purposes like mergers, estate planning, acquisitions or for obtaining finance. A written Valuation often becomes a legal document.

Business Appraisal

A business appraisal is a method of objectively examining various factors or evaluating a business or organisation to arrive at a fair and objective estimate of the business’s worth in the marketplace. It involves examination of the business’s financial records, assets and liabilities, cash flow, staffing , management and industry standards. An appraisal is simply an opinion or estimate only and is subjective .

Philip Baker

Dr Philip Baker is a licensed estate agent and business broker who spent 28 years as a practising healthcare clinician before specialising in medical and dental practice sales. A member of the Real Estate Institute of Victoria (REIV), the Australian Institute of Business Brokers (AIBB) and, for over 35 years, the Australian Dental Association, he has personally managed the purchase and sale of numerous successful clinics. More about Philip →