25D - AGMT FOR RIGHT OF WAY ON-CALL

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TECHNICAL APPROACH - GOODWILL APPRAISAL SERVICES In performing business valuation/goodwill loss appraisal services to the City, DM&A will perform the necessary research, investigation, and analysis to provide written appraisal reports in compliance with the standards of the Uniform Standards of Professional Appraisal Practice (USPAP) as it pertains to business valuations. DM&A takes the following steps in the goodwill valuation process: • Communicate with the City management and/or representatives to ascertain the scope of the assignment and provide responsive proposals for each task order; • Communicate with the subject business and/or representatives to commence the data gathering process; • Review and analyze the financial statements of the subject business, including internal income statements and balance sheets as well as tax returns; • Interview the owners and/or managers of the subject business and/or a review of deposition transcripts. Such interviews/depositions are intended to provide DM&A with a thorough understanding of the business' products, operations, management, employees, marketing, competition, and industry, as well as an understanding of recent financial trends and outlook; • Conduct site and area inspections of both the subject location and the business' relocation site, if applicable; • Review leases and other contracts pertinent to the business' operations; • Coordinate with other professionals, such as fixtures and equipment appraisers, real estate appraisers, and relocation consultants, to avoid duplication of compensation; • Research the business' industry, economic factors affecting the business, and the marketplace for sales of businesses similar to the subject; • Advise relocation consultant regarding the suitability of potential relocation sites and consult on which site(s) will result in the least goodwill loss; • Investigate the impacts of the taking and/or of relocation, if applicable, on the business' revenues and profits in the "after" condition taking into consideration potential betterment; • Implement valuation methods, such as the Income Approach (i.e., Discounted Cash Flow Method, Capitalization of Cash Flow Method) and Market Approach (i.e., Discretionary Cash Flow Multiplier Method, EBITDA Multiplier Method), to determine the value of the business' goodwill in both the before condition and in the after condition. The selection of the appropriate methods depends on the nature of the business and its marketplace in light of DM&A's market research; • Prepare of a valuation report in compliance with USPAP and in accordance with California Code of Civil Procedure sections 1263.320 and 1263.510-1263.530 and California eminent domain law; • Attend any required meetings or conferences with the client regarding appraisal questions; • Provide expert testimony and litigation support, as required; and • Maintain files in accordance with USPAP. gnu cp�,q PROPOSALTO ®� CITY OF SANTA ANA, RFP 2C 25D-237 �4✓C0�"e 124