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How to value a business and property?

Hi,

Hope someone can help.

I want to get a rough guide to what my business is worth and was hoping someone could post a link for me. I've looked at a couple online but they are a bit confusing.

When I get the valuation result do I then add the property value to the result? It's a small holiday complex in the countryside and I live on the site. Is this how I would work it out:
6 holiday lodges (value if sold individually) + House + Outbuildings + Profit =

Thanks

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Hazel2705 wrote: »
    Hi,

    Hope someone can help.

    I want to get a rough guide to what my business is worth and was hoping someone could post a link for me. I've looked at a couple online but they are a bit confusing.

    When I get the valuation result do I then add the property value to the result? It's a small holiday complex in the countryside and I live on the site. Is this how I would work it out:
    6 holiday lodges (value if sold individually) + House + Outbuildings + Profit =

    Thanks

    Seek specialist advice. There is no precise measurement as to value. A business will sell at the price somebody is willing to pay for it. Also whether you are looking for a quick sale or happy to wait.

    You obviously wouldn't wish to disclose financial information on an open forum. So attempting to comment is difficult.

    Suggest you start with a local land agent there'll be able to guide you .
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    Hazel2705 wrote: »
    Hi,

    Hope someone can help.

    I want to get a rough guide to what my business is worth and was hoping someone could post a link for me. I've looked at a couple online but they are a bit confusing.

    When I get the valuation result do I then add the property value to the result? It's a small holiday complex in the countryside and I live on the site. Is this how I would work it out:
    6 holiday lodges (value if sold individually) + House + Outbuildings + Profit =

    Thanks
    • The lodges probably have a planning restriction which prevents normal domestic occupation, so they are commercial property valued as assets of a holiday business - you may be best not to value them explicitly but to look at the profit they generate - see below.
    • The house can be a house or an asset of a holiday business, so if the cottages can be run from somewhere off site and the house is viable as an independent house not too affected by the holiday business, you can choose the higher value of [residential house plus holiday business run from off site] of [holiday business consisting of lodges plus house]
    • The outbuildings are valued as best fit with the house if valued separately or with the holiday business
    • The profit is not added into the valuation. The profit is the annual return from the business which allows a value to be derived The profit from the holiday business can be divided by some rate of return [10%?] to give the value of the holiday business. Some accountancy knowledge is required to factor in repayments of loans etc.

    As ever its real value is what the highest bidder will pay for it
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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