What is metavaluation?
MetaValuation™ is the integration of the formal principles of both business valuation and real estate appraisal, combined algorithmically to create a single detailed statement of the financial value components of income producing property. This innovation focuses academic and professionally accepted standards to identify, isolate, and quantify the tangible and intangible portions of a commercial property operation in ways previously not considered.
MetaValuation recognizes the statutory declaration that intangible assets are not taxable for transfer tax or property tax purposes in most states. Recent court proceedings have agreed.1 A significant portion of a commercial property’s overall value can stem from nontaxable elements such as, but not limited to, intellectual property (brands, know-how, tradename, technology) tenant relationships, contracts in place, assembled workforce, licenses, unamortized tenant improvements, leasing commissions, and more.
Our PairedExpert™ approach teams a licensed commercial real estate appraiser with a licensed and accredited business appraiser to apply professionally and generally accepted standards from both fields into a MetaValuation project. By applying professionally and generally accepted valuation concepts and processes into our hybridized opinions, we comply with the Daubert legal standard held at the Federal level and many states.2
RealAdvice processes ensure that our clients maximize shareholder value by strategically eliminating phantom tax obligations at the transaction’s closing. RealAdvice maximizes an investment’s Year One cashflow and net operating income. Our ProperTax Report™ is a comprehensive MetaValuation appraisal document that provides a detailed analysis of all components of a commercial asset’s fair market value, including elements typically overlooked by conformist valuation methodologies.
Our PairedExpert approach applies an Authoritative Allocation Method™ (AAM™). It is “authoritative” because each of its individual components and key claims are supported by irrefutable sources. These sources include academic, judicial, and regulatory standards at the federal and state levels. As such, the RealAdvice AAM complies with current best practices, the Code of Professional ethics of both the Appraisal Institute and the American Institute of CPAs in application of the Cost, Market, and Income methods to opine on the fair market value of analyzed assets, liabilities, and associated rates of return.