valuation

RE: valuation

Anthony Todd — Tue, 09 Jul 2019 16:52:21 GMT

[quote user="Bob Russell"]This is one of the reasons why professionals get involved with valuations.[/quote]

In reality the price is [of course and always] what someone is prepared to pay and, in reality, is not divided into plant and equipment as, often, the buyer wouldn't use brand A of what-ever but is used to, and will only use, brand B etc.

Accountants and valuers take great delight in minutely dividing the sale items and pricing them individually [even car-parking space] but, in reality, the price is what someone will pay for the whole package...

I am told that the value of a practice is just a rough multiple of the turnover anyway.....

Ancient equipment may be a great bargaining chip though!

RE: valuation

Bob Russell — Tue, 09 Jul 2019 14:40:14 GMT

There is a difference between financial value (according to accounts etc) and the value to a new purchaser. I was not suggesting any valuation would be based on the cost of a new replacement.

This is one of the reasons why professionals get involved with valuations.

RE: valuation

Gillian Mostyn — Tue, 09 Jul 2019 14:25:01 GMT

[quote user="Bob Russell"]It is not valueless because there is a not insignificant cost to providing a replacement. [/quote]

I don't get this. An old item isn't valued on what it would cost to get a brand new one! Plus, if it is old, it is likely to need replacing soon anyway.

RE: valuation

Bob Russell — Tue, 09 Jul 2019 11:07:00 GMT

It is not valueless because there is a not insignificant cost to providing a replacement. The value may be relatively limited because it will have been written off for tax in the accounts. The purchaser will, presumably be paying a price linked to the book profit.

I would expect a nominal sum to be paid, perhaps equivalent to buying a second hand unit with a dead on arrival guarantee. I doubt this will be much though!!

RE: valuation

James Dunne — Mon, 08 Jul 2019 21:00:16 GMT

There are informal conventions for valuing this kind of stuff. It is worthless on paper and since it has been written off, if it is paid for by the buyer, the seller may end up exposing themselves to some form of capital gains tax. However, some people agree on a (small) nominal sum and get the accountant to categorise it in such a way as not to expose the seller to an excessive tax liability.

RE: valuation

Rob Loxley — Mon, 08 Jul 2019 20:38:16 GMT

[quote user="Anthony Todd"]What's wrong with "ancient" X-ray generators[/quote]

Nothing, but accounting wise you have surely written it all off long ago?

RE: valuation

Anthony Todd — Mon, 08 Jul 2019 19:51:27 GMT

[quote user="Michael Woodhouse"]

You can't. In effect it's valueless. You've had your money's worth.

[/quote]

Well some would, always the buyer, but the smart buyer would realise that some stuff never ages......

What's wrong with "ancient" X-ray generators er, Acoma portables, and new fast screens in tired old ex NHS, but lightproof, cassettes?

RE: valuation

Michael Woodhouse — Mon, 08 Jul 2019 18:46:59 GMT

You can't. In effect it's valueless. You've had your money's worth.