Brillian's valuation and a formal appraisal both aim to answer the same question — what is this business worth? — but they differ in purpose, process, and use case. Understanding the distinction helps you use your Brillian valuation appropriately.
What they have in common
Brillian applies the same standard professional appraisal methodologies used by certified appraisers: income-based and market-based approaches, normalized cash flow analysis, and industry comparables. Brillian's valuations are IRS-compliant. The underlying methodology is not simplified or abbreviated — it's the same framework, applied using your actual financial data. Brillian's valuation report and a traditional appraisal both also incorporate the same standards-required information, analysis, and sourcing.
How they differ
A formal appraisal is typically conducted by a single certified appraiser, involves direct interviews and site visits, and produces a signed opinion of value used in specific legal, tax, or transactional contexts — such as estate planning, litigation, or a business sale. It is a point-in-time document that can take weeks to produce and carries a per-engagement cost.
Brillian provides regularly updated point-in-time appraisals that updates as your financial data and market conditions change. It's designed for planning — helping business owners and their advisors understand current value, track trends over time, and identify opportunities. Brillian's valuations can also be certified.
When to use which
Use your Brillian valuation for ongoing planning conversations with your advisor, benchmarking your business's performance, and understanding your business in the context of your broader financial picture.
A formal appraisal may be appropriate when a specific legal, tax, or transactional requirement calls for it — for example, completing estate planning, or resolving a legal dispute involving substantial business value.
Questions about your specific situation?
Brillian's team of CPAs and certified appraisers can help you understand whether a formal appraisal is warranted for your circumstances. Reach out through the chat in your account or contact your Brillian representative.