Normalizing Adjustment – Rent

3.33 (3 votes)

One of the potentially most impactful adjustments a business appraiser can make is to adjust the magnitude of the rent expense paid. The value of a business is based on its expected future earnings, what happens if the real estate is owned by the Company itself, and no rent is actually paid?

Shawn Hyde

CBA, CVA, CMEA, BCA

International Society of Business Appraisers

Shawn Hyde, CBA, CVA, CMEA, BCA has over 20 years of valuation and appraisal experience in numerous industries. He is a Certified Business Appraiser, Certified Valuation Analyst, Certified Machinery & Equipment Appraiser, and a Business Certified Appraiser. He has written and taught courses for the Institute of Business Appraisers (IBA), the National Association of Certified Valuators and Analysts (NACVA), and the International Society of Business Appraisers (ISBA). He has served on the IBA’s Education Board, and the IBA’s Board of Governors, and is a past Editor in Chief of the IBA’s professional journal, Business Appraisal Practice.