It’s important to determine whether a business valuation also calls for a real estate appraisal. While the decision may be relatively straightforward for real estate holding companies, it becomes more nuanced for operating businesses that own or lease real property. In many cases, real estate isn’t just a backdrop for business activity — it’s a core driver of enterprise value. Overlooking real property assets (and any associated income and expenses) can result in misleading or inaccurate valuation results. To ensure a well-supported, defensible value conclusion — especially when the business valuation will be subject to scrutiny from the IRS, courts or outside buyers — start by asking these key questions. How critical is real estate to the business’s earnings? Understanding the role of real estate in the subject...