Expropriation for Businesses

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

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.

Lead Valuator

Eric Jordan, CPPA - International Valuation Specialist