Article by Mark Ridout, director of R A Valuation Services Ltd
It is not just at the point of practice sale preparation that an accurate business valuation may be required. R A Valuation Services Ltd, the optical sector’s specialists in practice valuation, undertake independent valuations for many reasons, including the following:
- An internal transfer of ownership in whole or part. This could include the gradual or part sale of ownership or shares to a co-owner or employee. There can be many factors to consider such as fair open market value, discount applicable to a minority shareholding interest and so on.
- Buying into a practice – be it an independent or multiple store – a prospective purchaser should be suitably informed of the realistic market value of the business. In the present climate,prospective purchasers of businesses are increasingly seeking a formal independent business valuation. An expert’s valuation figure provides a fair and unbiased view of the worth of the business – independent of the ambitions of the seller or their transfer agent.
- Share schemes – increasingly schemes such as Enterprise Management Incentives (EMI) – are a cost-effective way of bringing employees into part ownership of the business, and consequently incentivising them with the practice’s success.
- Tax purposes including incorporation.
- Legal reasons such as litigation, director disputes, matrimonial settlements and so on.
For more information on R A Valuation Services, visit: www.ravaluationservices.com
Alternatively email: firstname.lastname@example.org or telephone: 01425 402 402