Business Valuation Companies – How to Choose?

Business valuation is offered by a range of professional firms—but not all approaches are created equal. Depending on who’s doing the valuation, the outcome can swing wildly, not just in numbers, but in credibility.

In this article we’ll look at three different types of business valuation companies, and explain how their approaches differ, to help you choose a valuation firm that’s right for you.

Large CPA Firms

Large accounting firms tend to stay inside—both literally and figuratively. Most valuations are performed from behind a desk, with little or no direct contact with the business being valued.

Interviews with the owner are rare. Site visits? Almost never. Valuations are often run through internal templates and software systems, which means analysts may be limited in what they’re even allowed to adjust.

When a business doesn’t fit neatly into a standard model, these rigid systems break down. Theory dominates. Practicality gets sidelined. And the final valuation may look good on paper but feel disconnected from reality.

Business Brokers & M&A Firms

Business brokers are the flip side of CPA firms. They’re pragmatic, fast-moving, and transaction-focused—but often thin on valuation theory.

Most broker estimates are informally referred to as a “broker’s opinion of value”, not a formal fair market valuation. And in truth, that’s what many of them are.

Another issue is independence. Many brokers get paid upfront through engagement fees, not upon successful sale. This structure can incentivize inflated numbers designed to win the client—rather than reflect market reality.

It’s not uncommon to see valuations based more on what the seller hopes to get, than what the market will actually bear.

M&A firms operate similarly but typically handle larger transactions. Think of business brokers as the used car dealers of the valuation world—while M&A firms are more like investment banks than car lots.

That said, even sophisticated M&A firms may skew toward aggressive valuations if deal volume or fee structure encourages it.

Specialized Business Valuation Firms

Specialized valuation firms fall somewhere in between. Some resemble the valuation departments of CPA firms—methodical, detail-oriented, and documentation-heavy. Others blend technical rigor with transaction-based judgment, often based on hands-on experience with actual buyers and sellers.

The best valuation firms don’t pick theory or pragmatism. They use both. When theory and practical insights are properly blended, the result is not just an estimate—it’s a defensible, market-aligned conclusion about value.

Nielsen Valuation Group is a good example of a specialized business valuation firm that focuses on determining fair market value. We consider both theoretical and practical aspects, while fully complying with IRS Revenue Ruling 59-60 on how business valuations should be conducted. Contact us today for a personalized quote.