Appraising Business Goodwill: Introducing the Fair Commission Model
This site introduces the Fair Commission Model (FCM) for appraising business goodwill. This model will assist anyone who wants to know how to negotiate, appraise or set a fair and reasonable price for an existing business with goodwill. I’m hoping that the site will prove useful to:
- Owners of successful businesses looking to retire or cut back.
- Buyers of successful businesses looking to get in or expand operations.
- Business appraisers.
- Business brokers.
- Lawyers and judges who have to hire and evaluate appraisal reports.
- Owners who want to gift or sell some of their equity in their successful business to employees or family members.
There are a lot of different appraisal methods now in wide use that pretend to give fair and reasonable appraisal values for existing successful businesses. These methods are to a one badly flawed and will lead to fair and rational values only by accident. As of today virtually everyone who has an appraisal credential or is a business broker will use one or a combination of these flawed methods if you engage their services. Many of the pages on this site detail just how flawed these methods are. For a review of these methods click here.
A course on time value of money can also be found on this site as time value concepts are an integral part of traditional business appraisal theory.
For specific appraisal topics you can also use the search button or the navigation bars on the side of each page. You can download a summary pdf of the model as well. Finally I welcome feedback so please send questions or comments in the Contact Me Form.