CCAG Celebrates
Brendan Wewer Earning Going Concern Designation

Understanding Going Concern Value​

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Many commercial properties cannot be properly analyzed by looking at the real estate alone.

Hotels, restaurants, gas stations, convenience stores, car washes, campgrounds, marinas, senior housing facilities, healthcare properties, and entertainment venues often operate as integrated businesses. Their value is created through the interaction of several components, including:

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• Real estate

• Furniture, fixtures, and equipment

• Business operations

• Licenses and permits

• Workforce in place

• Trade names and other intangible assets

 

​Valuing these properties requires a multidisciplinary approach that considers how each component contributes to the total value of the operating enterprise.

 

“Going concern valuation involves some of the most complex assignments in our profession,”

Brendan notes. “These are businesses that operate from purpose-built real estate where value is created through the interaction of the real estate, business operations, FF&E, licenses, workforce, and other intangible assets.”

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Why Going Concern Expertise Matters​​

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Commercial real estate transactions are becoming increasingly sophisticated. Clients often need answers to questions that extend well beyond, “What is the property worth?”

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They may need to understand:

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• How a purchase price should be allocated among real estate, equipment, and business value

• What acquisition basis may be appropriate for tax and depreciation purposes

• How a special-purpose or operating property should be priced for sale

• Which components of value are being transferred in a transaction

• How lenders should evaluate the collateral and operating business

• Whether the financial performance of the business supports the overall transaction price

 

​The ASA-GC designation provides a technical framework for addressing these questions through recognized valuation methods, standards, and procedures.

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Supporting Business Owners and Investors

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Whether acquiring, selling, refinancing, restructuring, or planning for succession, business owners and investors benefit from understanding where value exists within an operating property.

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A supportable allocation among real estate, equipment, and intangible assets may affect financing, depreciation, taxation, insurance, estate planning, and future exit strategies.

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Going concern valuation can also help an investor determine whether a proposed acquisition price is supported by the combined economics of the real estate and operating business.

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Helping Commercial Real Estate Brokers

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Pricing and marketing a restaurant, hotel, campground, or car wash is fundamentally different from marketing a vacant commercial building.

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Brokers involved in these transactions must understand how the real estate, equipment, operating history, and business components work together. A going concern valuation can help establish realistic pricing expectations, identify the assets included in the transaction, and communicate the overall value proposition to prospective buyers.

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Assisting Attorneys and Accountants

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Attorneys and accountants frequently encounter assignments that require defensible allocations among real estate, machinery and equipment, and intangible assets.

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These analyses may be needed for:

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• Purchase price allocations

• Estate and gift tax planning

• Partnership dissolutions

• Litigation and dispute resolution

• Financial reporting

• Tax planning

• Business succession

• Ownership transitions

 

These matters require a valuation professional who understands both the real estate and the broader economic enterprise operating from it.

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Providing Greater Clarity for Lenders​

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Operating properties can present unique challenges for lenders because the transaction may include assets beyond the real estate collateral.

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Going concern valuation can help lenders better understand the various components supporting a transaction and the extent to which value is attributable to the real estate, equipment, and operating business.

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This expertise is particularly relevant in SBA and conventional financing involving special-purpose properties. These assignments may require detailed value allocations and demonstrated competency in analyzing businesses that operate from specialized real estate.​​​

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The Intersection of Real Estate and Business Valuation​​

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As both an appraiser and a business owner, Brendan has developed a growing appreciation for how closely real estate and business value are connected.

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“As I’ve grown as both an appraiser and a business owner, I’ve developed a much deeper appreciation for how these components work together,” Brendan said. “I believe the intersection between real estate and business valuation will only continue to grow, making multidisciplinary valuation expertise more valuable than ever.”

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At CCAG, we have intentionally built our practice around solving complex valuation problems rather than simply producing appraisal reports.

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Our work increasingly requires an understanding of the intersection among:

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• Commercial real estate

• Machinery and equipment

• Business enterprise value

• Financial performance

• Market analysis

• Accounting considerations

• Valuation standards

 

By examining these disciplines together, we can provide clients with a more complete and practical perspective on value.

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Expanded Valuation and Advisory Capabilities​​

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The ASA-GC designation further enhances CCAG’s ability to assist with:

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• Going concern valuations

• SBA and conventional financing

• Purchase price allocations

• Business acquisitions and dispositions

• Estate and gift tax planning

• Litigation support

• Partnership disputes and dissolutions

• Financial reporting

• Property tax appeals

• Complex commercial appraisal assignments

• Valuation consulting and advisory services

 

These services are particularly important when a property’s value is directly connected to the business operating within it.

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A Commitment to Professional Excellence

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The ASA-GC designation complements Brendan’s existing MAI and CCIM designations and reflects his continued commitment to professional education and multidisciplinary valuation expertise.

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“The ASA-GC complements my MAI and CCIM designations and represents another step in my commitment to solving complex valuation problems and providing better advice to clients,” Brendan said.

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Professional designations require advanced education, qualifying experience, peer review, ethical standards, and an ongoing commitment to continuing education. Each designation strengthens CCAG’s ability to provide thoughtful, credible, and well-supported valuation advice for increasingly complex assignments.

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Looking Ahead

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The commercial real estate industry continues to evolve. Transactions are becoming more sophisticated, financing structures are becoming more complex, and clients increasingly need advisors who understand the entire value equation, not just the real estate.

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Whether CCAG is assisting a lender financing a hotel, helping an accountant allocate acquisition value, supporting a broker pricing a restaurant, advising an investor evaluating a business purchase, or preparing an appraisal for litigation, our objective remains the same:

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To provide independent, credible, and technically sound valuation advice that helps our clients make better-informed decisions.

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Congratulations to Brendan Wewer, MAI, CCIM, ASA-GC, on this outstanding professional achievement. We look forward to putting this expanded expertise to work for clients throughout Pennsylvania, New Jersey, Delaware, Maryland, and beyond.

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