I never thought I would one day be discussing words like ‘sounding board’, appraisers, and value in the same post.
I did a quick search on Google for the origin of the phrase, ‘sounding board’ and it provided the following:
“…a board or screen placed over or behind a pulpit or stage to reflect a speaker’s voice forward.”
That definition appears to be describing an early use of acoustics, to direct sound in the direction one wants it to travel. Long ago, someone noticed that people in the back of a church could hear the sermon better, if there was a hard flat surface behind the speaker.
So, this begs a question, “How are you going to tie this into a meaningful discussion on valuation, Shawn?”
Excellent question! I’m glad you asked that! Imagine for a moment that the ‘speaker’ described above is an appraiser, and the ‘sermon’ is the appraisal report. As appraisers, our job is to deliver a description and analysis to support our value conclusion. Per USPAP Standard 10-4, we could do so in an oral report format, so the analogy actually works. I want to focus on the ‘Sounding Board’ part of the story though.
Occasionally, we come across a valuation problem that has multiple solutions, or there is a question we would love to talk out with another professional business appraiser who would actually understand the process and what we are wrestling with. This other appraiser is also referred to as a Sounding Board. Here is the second definition per Google:
“…a person or group whose reactions to suggested ideas are used as a test of their validity or likely success before they are made public.”
I’ve personally been called by quite a few business appraisers due to my position as Executive Director of the International Society of Business Appraisers (ISBA) to act as a sounding board for a variety of questions. This is one of the most enjoyable aspects of my job! Unfortunately, I am not an expert in everything. I’d like to add a section to our new website where members could access a listing of valuation experts with expertise in a wider variety of aspects of our industry.
If someone has a client who needs a valuation for an economic damages case, it would be nice to be able to see at a glance, who might be able to answer some questions, or even who might be a good source to refer that client to.
I’m envisioning a page where an appraiser who works with option pricing, can be listed and those of us who need to be able to send a client to a different appraiser can see who would be an option for referrals, or to be able to bounce a few ideas off a knowledgeable source. Let me know what you think about this idea, and if you might be interested in such a page? shyde@intlBCA.com
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