Here are some findings from a U.S. membership survey recently conducted by TEC Worldwide Inc., an international CEO-education and -development organization based in San Diego. The 258 respondents are chief executives of small to large companies.

Q: Have you ever hired an independent appraiser to conduct a valuation of your company?

Yes 57.4%
No 42.6%

Q: If you have hired an outside appraiser, please list all reasons that apply:

Estate planning 42.6%
Company merger or sale 41.3%
Curiosity about the value of the business 21.9%
Bank or investor financing 15.5%
Growth management strategies 12.3%
ESOP 5.8%
Planning to go public 4.5%
Divorce 1.9%
Other 18.7%

Q: If you haven't hired an outside appraiser, why not?

Unnecessary 69.9%
Trust your own judgment 17.5%
Too expensive 8.7%
Other 20.4%
Source: Inc. magazine-Tec Business Valuation Survey, September 1998.

Published on: Feb 7, 1999