Using Teem-Work to Extend Your Reach on the Real Estate/Business Value Continuum‪.‬

ABSTRACT This article revisits proposed methodologies for allocating the value of the going concern to real estate, tangible personal property, and business enterprise value (BEV). The favored methodology is rooted in a business appraisal method known as the excess earnings method (EEM). The current article proposes a simplified EEM model, the total excess earnings model (TEEM), which generally requires just twelve data inputs. The proposed model acts as a test of whether BEV is present within the going concern, and the EEM is shown to follow the same concepts as residual valuation methods. Also discussed are the Small Business Administration requirements on allocations and USPAP FAQ 164, which states that an allocation is synonymous with an appraisal and bound by applicable USPAP appraisal standards.