Goodwill valuation

Goodwill valuation

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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

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By AnonymousUser
21st May 2008 21:20

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!

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By zacandy
22nd May 2008 17:20

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

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