Goodwill Analysis

Challenge

Valuation of Goodwill is less intuitive and tangible than property appraisal to the layperson and therefore is more susceptible to suspicion on the part of the jury. As the opposition will likely present a much different value, the jury will be called upon to believe one and possibly discard the other. The challenge in the presentation of Goodwill analyses is explaining the mathematical and business valuation portions in a non-intimidating manner, giving enough background data to nurture understanding without overwhelming with details and complex concepts. If the jury doesn't understand the analysis or feels it's not a true "science" they may have difficulty in suspending disbelief.

Solution

Focus on the less technical aspects of the analysis, providing compelling, intuitive graphics to explain EVERYTHING that can be explained using pictures. This includes using photos & video of the subject property, large, colorful slides to summarize mathematical analyses & simple graphics to describe the tangible areas of the business. Make the loss (or lack thereof) tangible for the jury by SHOWING the effect of the project. When explaining the inevitable valuation methodology, summarize the key analyses with text slides & step the jury through the analysis one calculation at a time. If the jury feels the analysis is logical and presented in a orderly fashion, they are more likely to believe it, even if their understanding of the finer points is incomplete.