How is Loss of Business Goodwill Compensated in an Eminent Domain Case?

The government does not just use eminent domain powers¹ to take residential property, but also can use this power to take property that houses commercial businesses. Business owners deserve compensation for all of their related losses, including any business goodwill² that may be lost. Goodwill is the value of your business that is not directly attributable to actual assets of the business.

How is goodwill value determined?

Many factors are considered in order to put a financial value on the intangible goodwill of your business. Some of these factors include as follows:

• Nature of the business industry and future prospects for industry growth or decline
• Length of time that the business has been operating
• Reputation of the business for quality, dependability, and skill
• Nature and size of the customer base and probability of customer retention as well as future growth
• State of the economy in general
• Length and security of the business’s occupancy of the property
• Types of business risks

In order to complete financial calculations based on the above factors, you want to have the assistance of a highly experienced business appraiser. The appraiser you choose should understand how to calculate the value of your business’s goodwill specifically within the context of eminent domain cases. Furthermore, the government will likely try to combat your claims of goodwill value by presenting evidence from their own appraiser. The expert on your side should be able to cast doubt on the estimations presented by the government’s appraisers as well as assert their own estimations.

Call the experienced eminent domain lawyers at the law firm of Sever Storey today

If the future of your business has been threatened by a government taking, you deserve the maximum amount of compensation possible, including for your business goodwill. You need a law firm on your side that has the resources to hire experienced eminent domain appraisers and other experts who can perform the complicated calculation necessary to get you what you deserve in your condemnation case.  Please do not hesitate to call the condemnation attorneys at Sever Storey for help at 888-318-3761 today.

References:

¹https://www.law.cornell.edu/wex/eminent_domain

²https://en.wikipedia.org/wiki/Goodwill_%28accounting%29