How do you value that? — Noncompete agreements are a tricky intangible

Description

Abstract: Business appraisers are frequently hired to allocate value among a company’s individual assets, including intangibles. But a noncompete agreement is among the most difficult intangibles to value, because there’s little comparable transaction information available. Fortunately, a qualified appraiser can value a noncompete with confidence by sticking to several common-sense approaches. This article examines those approaches, while a sidebar notes that the value of a noncompete agreement also comes into play when divvying up a business interest for divorce. Citation: Banchefsky v. Banchefsky, No. 09AP-1011, Sept. 9, 2010 (10th Ohio App.)