RP401 Allocating Components in Going Concern Appraisals

Class Date/Time

Monday, February 13, 203 - Friday, February 17, 2023
10:00am-6:00pm Eastern US

Online Registration Includes

• One registrant login to the live sessions
• Electronic course materials*

*All course materials included with your registration are PDF download only items made available to students prior to the start of the class and are not for resale or distribution. All downloadable materials are accessible via your education dashboard (login required). Once eMaterials have been posted for download, the class is no longer refundable.

Class Schedule

All times are Eastern US

Session 1 - Monday, February 13 - 10:00am-6:00pm
Session 2 - Wednesday, February 15 - 10:00am-6:00pm
Session 3 - Friday, February - 10:00am-6:00pm
Exam Proctoring - Tuesday, February 21 - 11:00am-2:00pm

Please Note: Partial credit will not be awarded for this offering. Students must participate in all three (3) sessions to complete the course and receive full credit. The sessions will not be recorded and/or made available after the class.

Continuing Education (CE) and State Approvals

This course provides 24 CE instructional hours and 3 exam hours.

RP401 is currently approved in CA, IL, IN, ME, MO, NC, NJ, NV, OK, OR, PA, TX, WA, and WI and pending approval in FL and TN. If you're licensed in a state not listed here and would like to attend this class, please email education@appraisers.org.

Course Description

This three-day course with a 3-hour exam at the start of day 4 introduces appraisers, assessors and attorneys to the concept of allocating the various components of what has come to be known as a real property going concern.   Examples of RPGCs include car washes, fueling station/c-store, lodging properties, wedding or event centers, food processing facilities, commercial nurseries, equestrian centers, etc.  The list of potential real property going concerns for which appraisal services can be requested can be very long.  A hot topic today in many states is the valuation of licensed cannabis growing facilities.

The defining concept is that the RPGC valuation process addresses the entirety of the property, M&E, and its business operation.  The assignments require support for the allocation of value to the tangible real estate and machinery & equipment (MTS) components as well as any business or entrepreneurial value associated with the intangible components.

It is a thorough, hands-on learning experience designed to provide the knowledge and understanding when to, and when not to, properly allocate/segregate the value components both from a real estate appraiser as well as from a business and MTS valuers perspective.  The course will exam when to employ the assist from a business appraiser or a machinery & equipment appraiser. Additionally, it presents allocation requirements as required by lending institutions and how to analyze their effect on value as required by USPAP.

Instructional Methods

Methods include lectures, discussions and individual/group exercises and assignments.

Course Audience

This course is for students who have a basic understanding of how to appraise complex commercial real estate such as fueling station/c-store, car washes, lodging properties, nursing/assisted living facilities, etc.

Learning Level

Fundamental

Learning Outcomes

Upon completion of this course, students will be able to:

• Understand the concept of a going concern valuation, both from the real estate appraiser’s perspective as well as the business valuators perspective.
• Recognize their obligations to current laws, USPAP, and other regulations including understanding ASA BV standards. 
• Distinguish the differences between business appraising and real estate appraising. 
• Know the current terminology surrounding going concerns of operating companies primarily depending on RE as an income producing asset. Understand the fundamental principles underpinning going concern valuations. 
• Develop applicable analyses. 
• Utilize discernment rules. 
• Determine the types of properties that are candidates for going concern valuations. 
• Appreciate current notions and ideas about going concerns from published authors. 
• Apply current techniques and methodologies used in developing going concern valuations. 
• Be introduced to valuing small businesses and cover all three approaches with the current methodologies used by business appraisers. 
• Solve case studies on how to value going concern properties. 
• Support value conclusions in a report. 
• Explore backdoor testing of conclusions and reasonable tests. 
• Identify and utilize available resources.

eMaterials

All course materials included with your registration are PDF Download Only items made available to students prior to the start of the class and are not for resale or distribution. All downloadable materials are accessible via your Education Dashboard (login required). Once eMaterials have been posted for download, the class is no longer refundable.

Accessing eMaterials

eMaterials are provided electronically in PDF format and posted to the class within the Education Dashboard for all registrants to securely access prior to the start of the class. Attendees should come to class prepared with an electronic or printed copy of all eMaterials to use as a reference. OnDemand course registrants receive access to materials immediately following registration. 

PDF course materials are presented in color, are bookmarked, and comment enabled. When opting to print downloaded materials, it is recommended that personal print settings be adjusted to print in black and white (or grayscale) and consider printing double-sided on recycled paper.

Certificate of Completion

Please allow 5-10 business day following successful completion of the course or final exam to receive a formal status notification and access to a certificate of completion. The certificate will be available to view and/or download from within the class listed in your Education Dashboard.

Financial Assistance

ASA’s Educational Foundation recognizes students who choose to invest their time in appraisal studies by providing assistance to students demonstrating a financial need. Please visit the Educational Foundation's webpage for more information and to download an application.