In THE REAL ESTATE CLIENT: VALUATION SERVES IMPORTANT MASTERS IN LITIGATION CASES, forensic accounting expert witness Richard M. Squar writes on the net asset value method:
The value of the partnership before considerations of discounts is determined by the net asset value method. The aggregate net asset value of the entire limited partnership is established by individually appraising each underlying asset taking into consideration liabilities at the valuation date. Assets and liabilities in a typical real estate limited partnership include cash, rents receivable, real estate properties, accounts payable, accrued expenses such as interest due on mortgages, mortgages, and refundable security deposits. The client’s limited partnership interest percentage is applied to the aggregate net asset value to determine the value of the interest before consideration of discounts.