The value of a business that is anticipated to remain operating in the future is known as the Going Concern Value. The Going Concern Value is frequently referred to within real estate appraisal as the combined value of the property and the business operations, or the Total Assets of the Business. The Small Business Administration has issued ten updates to SOP 50-10 5 since 2008, changing its position on several occasions about who is eligible to appraise the business component for a going concern loan. The SBA has excluded real property appraisers from the eligible list until the most recent change that was announced on May 4, 2015. The new requirements are as follows:
If an applicant business operates from a Special Purpose Property (for example, car washes, hotels, gas stations with or without a convenience store, golf courses, medical facilities or bowling alleys), the going concern appraisal must be completed by a Certified General Real Property Appraiser with experience appraising the specific business/property type. Such appraisals must allocate separate values to the individual components of the transaction including land, building, equipment and intangible assets. Finally, the Certified General Appraiser must have completed no less than four going concern appraisals of equivalent special use property as the property being appraised within the last 36 months, as identified in the qualifications portion of the Appraisal Report.
The staff at Crossroads Appraisal Group has extensive experience performing Going Concern appraisals for special use properties. We meet the current SBA requirements for Going Concern appraisals of c-stores with and without gas sales, package stores, hotels and car washes. Allow us the privilege of partnering with you to meet your appraisal needs.
Give us a call today with any questions you might have. Our friendly staff is looking forward to speaking with you! You can also check out our ‘Praise’ page to see what others are saying about Crossroads Appraisal Group.