Blogger
Share this content
0
14
9580

Goodwill Valuation

I recently read an article on accountingweb where a reply from a member suggested they were using a software package to value goodwill when incorporating a business. Does anyone know of such software?

Replies

Please login or register to join the discussion.

avatar
By Anonymous
13th Aug 2009 09:37

Goodwill and general business valuation
We have developed a business valuation software tool that you may find will assist you with this. It is not specifically designed just to value goodwill but the value of businesses generally using a variety of valuation methods.

www.thebusinessvaluer.co.uk

Thanks (0)
avatar
By Anonymous
13th Aug 2009 11:29

Has anyone tried this?
Has anyone tried this software? Surprised there are no trial versions available on their website? Or did I miss it?

Thanks (0)
avatar
By Anonymous
13th Aug 2009 11:30

Where is the trial version?
How do you expect people to buy without trying it?

Thanks (0)
13th Aug 2009 11:51

I'm not aware of an ideal solution
But I agree it would be useful. I can guess at reasons why none exists (for use when incorporating a small business) but I can also appreciate that what accountants and their clients want is a simple calculation and record of key facts that will support the goodwill valuation used in the event of a challenge from HMRC.

Where a novice valuer has done a quick and dirty multiple of profits estimate of the value of the business goodwill; has ignored the existence of any personal goodwill; and has retained no evidence of the factors that prove the existence of business goodwill - HMRC can have a field day. Such an approach is hardly going to win prizes for professional competence and integrity either.

I'll ask around (beyond Accountingweb) but I'm not helpful that such a package exists or that any decent valuations specialist would want to create one.

Mark Lee
Tax Advice Network

Thanks (0)
avatar
By Anonymous
13th Aug 2009 12:32

Not quite understand your comments Mark

Thanks (0)
13th Aug 2009 23:11

Messaage to anonymous
If you can explain in what way you don't understand I'll be happy to clarify if I can. Without any further comment though I wouldn't know where to start. Sorry.

Mark

Thanks (0)
avatar
By Anonymous
14th Aug 2009 09:42

This bit....
I'll ask around (beyond Accountingweb) but I'm not helpful that such a package exists or that any decent valuations specialist would want to create one.

Thanks (0)

I think all Mark is saying ...
is that it is a complicated area that does not lend itself to an 'off the peg' bit of software and why would a specialist want to develop such a thing and by doing so devalue what he/she does for a living.

Thanks (0)
14th Aug 2009 10:49

Spot on Steve
Got it in one.

Mark

Thanks (0)

The package AWEB used to promote

...was the Business Valuation Software developed by John Welford-Costelloe. The application was designed to support a number of techniques: book value; market value (for quoted companies); diluted cash flow; and profit/sales multiple.

There is no reference to goodwill in the online information; as Mark Lee suggests this represents the intangible value that the owner negotiates, or the cash value the buyer is willing to pay above the value of documented assets (NB - I'm no tax expert).

I'll contact the developer and see if he can enlighten you on this point and add to the overall debate.
__________________________
John Stokdyk, Technology editor

Thanks (0)
26th Aug 2009 11:59

Trial Version
True they don't have a trial version... but they do have a "Video Demonstration".

Seems fairly complex...

Thanks (0)
avatar
26th Aug 2009 17:22

Valuing Goodwill in Small & Medium-sized Enterprises
The comments made by Mark Lee, above, are fairly sound and sensible. There are a number of issues relating to the valuation of Goodwill which it is as well to be aware of, in order to reduce the chances of significantly mis-valuing acquired Goodwill and other intangible assets, for tax purposes.
There is an article entitled "SME Valuations: Goodwill and Discount Rates" which was published on AccountingWEB back in April 2008, and which is still on the web-site - under the Practice section:
http://www.accountingweb.co.uk/item/181725
At the bottom of this article is a link to an earlier article on "Valuing your unquoted company's shares"and to a number of other articles on valuation-related matters.

Thanks (0)
avatar
12th May 2010 10:58

Demo available

Just to let you know, TBV now offer a demo version. www.thebusinessvaluer.co.uk

I've given it a go and have just purchased the full version which works brilliantly.

Simon

Thanks (0)
avatar
By Anonymous
12th May 2010 11:08

Hmmm... an automated expert...

rather timely this popping back up, after PwC got sued so badly for their rote valuation!

There'll be rocket science software next.

Thanks (0)