Knowledge @ Wharton & GE Capital provides an article on Four Principles to Choose a Lender.

FEI Research Foundation Products available for this topic are:

Access to Credit: How Corporations Are Changing Strategies to Ensure Growth/ Sustain Liquidity, November 2001

The Research Foundation compiled information on when a review should be performed on a real estate appraisal. Alfred King, Vice Chairman of Valuation Research Corporation, has written a book published by Wiley titled "Valuation: What Assets Are Really Worth."

"For most ordinary valuation issues, a straightforward appraisal is sufficient, assuming the appraiser appears to have a reasonable background and experience. There are certain situations, however, in which appraisal reports are reviewed by other appraisers. Occasionally, there will be a court case for which the appraiser must be qualified as an expert.

Particularly for commercial and industrial real estate transactions, major lenders will hire an outside appraiser to determine the fair market value, but then have another appraiser review the initial appraisal report to verify the assumptions, methodology, and comparable transactions that were utilized. Keep in mind that it is the borrower who pays for the appraisal, even if the lender chooses him, and has the report directly sent to the lending institution; in such situations, the borrower may end up paying for two appraisals on the same property. Borrowers are entitled to ask the cost of such work before agreeing to it.

Somewhat like a second medical opinion, the review appraiser looks at the detailed support in the first appraiser's report, tests the assumptions for reasonableness, and finally applies his own experience. There is a natural conflict between the borrower, who wants the highest possible value, and the lending institution, which wants to err on the side of conservatism, just in case things do not work out."

For a list of companies that have goodwill on their balance sheet, along with additional information on goodwill, visit the following website provided by Ernst & Young.