I have a client who needs the goodwill of their service business calculated (for incorporation purposes) - can anyone recommend a reasonably priced firm/person in London who routinely does this sort of work?
There is no 'personal goodwill' and profits are not very high (about £30/£40k pa).
GH
Replies (2)
Please login or register to join the discussion.
Back of envelope
Not experienced in the field but I've been in practices where corporate finance departments would look at average of last 3-5 years profit and apply an industry specific P/E ratio, knock off net assets and hey presto you have a figure for goodwill!
Adjust for any unsual one-off items and in the case of company's, under/over paid owner directors i.e. substitute their remuneration for a market salary.
I've done this for EMI valuations and never had one questioned!
Goodwill Valuation
Afternoon GH
I might be able to help. Please send me an email with your contact details to [email protected] and we could speak.
Thanks
Andrew