Business Appraisal Services

Business Enterprise Value (BEV)

Business Enterprise Value (BEV) is defined by the Appraisal Institute as:

“The 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, customer base, and operating agreements.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).

Going Concern Value

Going Concern has several definitions, one offered by the Appraisal Institute is as follows:

“The value of a proven property operation. It includes the incremental value associated with the business concern, which is distinct from the value of the real estate only. Going-concern value includes an intangible enhancement of the value of an operating business enterprise which is produced by the assemblage of the land, building, labor, equipment, and marketing operation.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).

Business Appraisal Report Types

When ordering an appraisal for your business, there are two report types available. One basic, and one more detailed. Deciding which report type is best for your situation is largely a factor of what you need the appraisal for. In high scrutiny situations, a comprehensive appraisal report is required. In situations where the appraisal will only be used by a limited audience, for a limited use, a restricted-use report can suffice.

Restricted-Use Appraisal Report

Restricted-Use appraisal reports are appropriate for limited audiences and in situations where there will not be a high level of scrutiny. They are less detailed from a reporting aspect, as compared to the comprehensive appraisal report.

Comprehensive Appraisal Report

Comprehensive appraisal reports are appropriate for situations where several parties will be relying on the results of the valuation, and when the value will be scrutinized. This is the most detailed business appraisal.

Additional Questions?

We are available to answer any questions you may have about the appraisal process. Contact Colorado Appraisal Consultants Here and submit your question, or pick up the phone and dial 720-315-2530.