A property owner sought to sell property that included an operating restaurant. The lease between the property owner and restaurant included a clause that the property owner would pay the restaurant owner fair market value in the event of selling the property.
To determine fair market value, the restaurant owner hired Lou Pereira of Merrimack Business Appraisers to prepare a business valuation of the restaurant. When the valuation was complete, the property owner disputed the value and hired two nationally recognized business appraisers: one to prepare a separate business valuation of the restaurant and the other to complete a review of the valuation prepared by Pereira.
Merrimack Business Appraisers’ Approach
- Lou Pereira, President of Merrimack Business Appraisers, prepared a detailed and thorough business valuation applying his proven process to substantiate ‘fair market value’ of the restaurant per the lease agreement.
The case went to Superior Court where Lou Pereira testified to the restaurant valuation he had prepared. The Court ruled in favor of the valuation prepared by Pereira, dismissing the valuations of the other two valuation professionals. The ruling was appealed and progressed to Appellate Court where the judge upheld the Superior Court ruling. Fair market value was determined by the business valuation from Merrimack Business Appraisers for the property owner to pay the restaurant owner as part of selling the property.