If a third party appraisal claims the business owner has significant personal goodwill, wouldn't that devalue the business? For example, if the company is worth $5mm, but the owner's personal goodwill creates $2mm of that value then would you really feel comfortable paying $5mm for the business? Isn't the appraisal claiming that the business is immediately worth less once the owner is no longer involved?

If you want to learn more reference the Martin Ice Cream case.