cherry and cherry logo
images of exeter and surveying tools

Business Valuations

Business Valuation Reports for Purchasers, Taxation and Dispute Resolution

Independent Valuation Advice for Purchasers

A Business Valuation should provide a clear understanding of the trading potential and goodwill value of the business. Part of the report will consider how much of the existing turnover and profits can be sustained by a reasonably efficient operator; how much of the goodwill is transferable to the purchaser; and how much is personal to the existing operator.

financing calculations

It is also generally useful for the purchaser to consider what standards, systems and good practices are employed by the vendors in the successful management of the business. The in situ value of the existing trade fixtures, fittings and effects must also be considered.

Once these issues have been determined, comparable market evidence of similar businesses is considered in order to provide an opinion of the open market value.

Taxation

It can sometimes be important to have a Valuation undertaken for the purposes of Inheritance Tax or Capital Gains Tax, or to assist in taxation planning. This can sometimes involve us in negotiations with the Valuation Office for Her Majesty’s Revenue and Customs, who employ their own Chartered Surveyors to deal with  valuation issues.

Partnership Dissolution

A Business Partnership is generally a close working relationship and, when the dissolution of the Partnership is being considered, both parties invariably want to do the right thing by each other but, at the same time, they also need to think about their own family commitments or business and retirement plans. A Business Valuation Report and advice can be helpful in these delicate situations.

Dispute Resolution

Regrettable to say but occasionally we are asked to give advice and guidance on the price paid for a business - which has not been sold by Cherry & Cherry. This may be because of a problem with the legal title or an alleged misrepresentation of the trading figures and the consequential effect on the valuation of the business and premises.