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Just Elementary, Inc. » Business Valuation » Eminent Domain – Getting the Right Value and Knowing Your Rights

Eminent Domain – Getting the Right Value and Knowing Your Rights

Eminent Domain is a scary sounding proposition.  Your property and/or your business can be shut down and taken away from you against your will.  The real estate has value, but what about the business located at the real property?  How about the value of the business?  What are your options?  How can you make sure you get a Fair Market Price for the business?  Courtesy of the Partners at Nossman, LLP, a California Eminent Domain & Valuation Law Firm, with two Southern California Based offices, we’ll discuss one key topic, which is the value of Business Goodwill in an eminent domain situation.

What is the Right to Take property:

Private Property Ownership can be taken away for “Public Use” provided fair compensation is offered.  The definition of “Public Use” has been debated over time and updated through case law.  Can your property be taken to be used to build a mall, to build a power plant, to build a new road?  This depends on your location.  It is best to consult an expert in eminent domain to determine your options.

Determining the Goodwill Value for a Business subject to Eminent Domain:

Fortunately, the State of California does recognize and can compensate the value of a business in the case of an eminent domain taking.  However, there are key conditions that need to be met.  Two of these key conditions are the following:

  • A Loss of Value to the business has to be caused by a taking of the real estate by eminent domain
  • Said Loss of Value can’t be mitigated by a relocation or any other form of relocation compensation.

Benjamin Rubin & Brad Kuhn of Nossaman, LLP write an analysis of the details of the case of a operating winery that received Zero dollars in business goodwill compensation.  A key takeaway from the case applies to all businesses, which is the importance of maximizing profits on your financials.  Click to learn more about how you can maximize the value of your business.  While avoiding a higher tax bill by reducing taxable profits may help you in the short term, it can be at the cost of tremendous value and money in the long run.

For assistance with a Business Valuation for your business contact our office, you can reach our Client Care Manager Sonia Chhabra at  (888) 926-9193 or email

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