Business Value

[gville81]

I'm a new CG and was wondering if anyone knew of good resources on how to derive business value.

 

[TerryRohrer]

A huge subject. If you are asking about enterprise value in conjunction with a real estate appraisal (as in a hotel), start with:

A Business Enterprise Value Anthology, Second Edition - PDF

www.appraisalinstitute.org

Deeper dives are offered by accountants through:

NACVA | The Authority in Matters of Value | Business Valuation | Financial Litigation | Forensic Accounting | Financial Consulting

www.nacva.com

The oldest organization dedicated to BV is the Institute of Business Appraisers.
https://www.bvresources.com/articles/special-reports/the-institute-of-business-appraisers

 

[Gobears81]

There are quite a few different methodologies. I've found that the industry has wanted to standardize methodology, and understandably so, but the reasons for why business value exists in individual properties often warrants different approaches to valuation.

ASA is a good resource for business value. I took a class from them this year, and would recommend it.

https://www.appraisers.org/education/real-property-(rp)/rp-course-library

 

[Terrel L. Shields]

ASA classes top shelf. AI had a BEV class or two as well.

 

[Elliott]

Business Value is where you look over a small business's books and ask the owner if they have ever figured they are actually making $8.52 cents per hour by running the business that they love and would never close.