Expropriation for Businesses

How expropriation ends leases and crushes intangible assets, potentially destroying 50–90% of business value.

Fee Range: $1,500 - $15,000  ·  Basic Average: $3,500

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Expropriation Overview

For a business, expropriation typically ends your lease. Ending the lease crushes your intangible assets, which is often 50%–90% of total enterprise value.

Many practitioners misunderstand or ignore intangibles, rolling them into a vague “goodwill” line. We quantify them — and show the difference between value with the lease and value after the lease is taken away.

  1. First, we value your business with the lease in place (going-concern).
  2. Second, we show what value remains once the lease is removed.

Key Considerations

  1. Leasehold improvements worth $300,000 in your current site may have little value in a new location.
  2. Normalized net income at a new site may be materially lower — possibly zero.
  3. Inventory may need to be liquidated at a discount versus pre-expropriation value.
  4. Client base attrition: not all customers will follow you to a new location.
  5. Brand and cumulative advertising may not transfer one-for-one.
  6. Fair Market Value reality: a buyer with knowledge of the facts (including an ending lease) won’t overpay.

Engagement & Pricing

An appraisal for assets generally runs from $399 to $799. Business FMV assignments are scoped individually based on size, complexity, records, and deadlines.