As you would expect the majority of owners of businesses in the property sector will speak to their external Accountant first concerning the practice valuation. The Accountant may have very little knowledge of what a practice will sell for on the open market in this specialised area.

Many owners phone to say ‘I need to know the value of my practice, what multiple is applied to my annual fee income? Is it still one times my annual fees?’ The answer is that Purchasers will review the profits of the practice. If you were looking at two practices with a turnover of £300,000 would you pay the same price for each one if one was loss making and the other was making a profit of £100,000? Probably not.

Chegwidden and Co can assist you by providing the business valuation you require based upon first hand knowledge and experience.

We also carry out goodwill valuations on the transfer of a trade from a Sole Trader or Partnership to a limited company. The Inland Revenue will expect an independent valuation to be carried out for these purposes. It is inadvisable to ask your existing Accountant to carry out the valuation because of the close relationship to you.