Appraisal Economics has completed the valuation of a New Jersey-based commercial real estate development company engaged in construction management and the development of properties for light industrial use, including warehouses, distribution centers, and light manufacturing. The company also provides property management services. We valued the Company using the discounted cash flow method of the income approach and the guideline transaction method of the market approach. A key issue was the determination of a market-based level of owners’ compensation, as the majority owner was significantly under-compensated for the value of his services rendered to the business.

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