Practical guide
Business Appraisal Report vs Valuation: What Is the Difference?
“Valuation” and “appraisal” are often used interchangeably, but they can describe different levels of work. Understanding the difference helps you choose the right starting point.
A valuation is usually the number-first view
An indicative valuation estimates a range from earnings, industry context and risk factors. It is useful when you are screening opportunities, setting an early expectation or deciding what information to improve next.
An appraisal is the story behind the number
A deeper business appraisal report can discuss the business model, market position, strengths, weaknesses, operational risks, transferability and potential buyer questions. It is useful when a business needs a more complete narrative for planning, discussion or preparation.
Neither is automatically a formal valuation
A software-generated estimate or broker-style report is not the same as a formal valuation prepared for a specific legal, tax, shareholder or financing purpose. The required standard depends on the decision and the professional who will rely on it.
OpenBiz offers both a quick AI valuation and a broker-style appraisal workflow. Start with the smallest useful level of detail, then bring in a qualified professional when the stakes require a signed opinion or specialist advice.