Field Guide to Business Value
(Updated November 2009)
Valuing the intangible? Understand the distinctions between business value, going-concern, and goodwill -- and find out how these concepts apply to hotels & motels, retail establishments, and special purpose properties -- in this updated Field Guide. (S. Hogan, Information Specialist)
Terminology
BUSINESS ENTERPRISE VALUE (BEV)
"A term applied to the concept of value contribution of the total intangible assets of a continuing business enterprise such as marketing and management skill, an assembled work force, working capital, trade names, franchises, patents, trademarks, contracts, leases, and operating agreements." (The Dictionary of Real Estate Appraisal, 4th ed., Appraisal Institute)
GOING-CONCERN VALUE
"An operating business enterprise that is expected to continue." (The Dictionary of Real Estate Appraisal, 4th ed., Appraisal Institute)
GOODWILL
"An intangible, salable asset arising from the reputation of a business; the expectation of continued public patronage; including other intangible assets like trade name and going concern value...," (The Language of Real Estate, 5th ed., John W. Reilly)
Valuing the Intangible 
Relationships between the overall property and its parts, and the three approaches to value, (The Appraisal Journal, Winter 2009). Q
Customer relationship assets and separability from goodwill, (Valuation Strategies, Sept./Oct. 2009). Q
The intangible intangible: increasing the value of a deal using personal goodwilll, (Corporate Taxation, Sept./Oct. 2009). Q
Enterprise component allocation: methodology discussion, (Real Estate Issues, Spring 2009). Q
Appraising interesting holes in the ground, (The Appraisal Journal, Spring 2009). Q
Reassessing market value, (National Real Estate Investor, Feb. 2009). Q
Hotels & Motels
Market orientation, competitive advantage, and performance: a demand-based perspective, (Journal of Business Research, Nov. 2009). Q
Inside the valuation of the Yellowstone Club, (Real Estate Finance, Oct. 2009). Q
Values to bottom out in 2010?, (Lodging Hospitality, Aug. 2009). Q
A new approach to appraising hotels, (Lodging Hospitality, July 2009). Q
Valuing limited-service hotels: a pragmatic framework from a broker's perspective, (The Appraisal Journal, Winter 2008). Q
Appraise your appraisal, (The Appraisal Journal, May 15, 2007). Q
Retail Establishments
Commercial appraisals: a review checklist for distressed markets, (The RMA Journal, Sept. 2009). Q
Business sales plummet as owners hold on, (Nashville Business Journal, July 10, 2009).
Local economic analysis for shopping center appraisals, (The Appraisal Journal, Spring 2009). Q
Macy’s valuation a topsy-turvy world, (Business Courier of Cincinnati, Nov. 28, 2008).
Special Purpose Properties
Nursing facilities: assets, interests, and ownership structures, (The Appraisal Journal, Summer 2009). Q
Industrial incubators: key characteristics that impact value, (The Appraisal Journal, Winter 2008). Q
eBooks & Other Resources
eBooks.realtor.org
The following ebooks and digital audiobooks are available to NAR members:
Business valuation for dummies (Adobe eReader)
Real estate market valuation and analysis (Adobe eReader)
The market approach to valuing businesses (Adobe eReader)
Business valuation and taxes: procedure, law and perspective (Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
Valuation by comparison: residential analysis and logic, (Appraisal Institute, 2007). HD 1387 Ap6vc
Fundamentals of industrial valuation, (International Association of Assessing Officers, 2007). HD 1387 In8f
Business valuation bluebook: how successful entrepreneurs price, buy, sell and trade businesses, (Facts on Demand Press, 2005). HD 1387 Si4
Real estate market valuation and analysis, (John Wiley & Sons, Inc., 2005). HG 4523 K12
Business valuation discounts and premiums, (John Wiley & Sons, Inc., 2001). HD 1387 P88bv
Field Guides & More
These Field Guides and other resources in the Virtual Library may also be of interest:
Field Guide to Hotel/Motel Properties
Field Guide to Retail Property
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