Finance and property service valuations

Finance and property service valuations

Like professional practices, finance and property service businesses often have little or no productive tangible asset base. What they do often have however is a book of business, for example, a loan book or rent roll.This intangible asset can be potentially valued in its own right and this can be a key area of dispute, see Nettler and Nettler (2007).

Another potentially contentious component of value is the market salary for the owner operator; see court cases Corbon & Klousner (2015) and Scott & Scott (2006).

A key valuation component is the likelihood the clients will stay with the business, which in turn depends on factors such as the length of the client relationships and the client agreements in place.

Examples of finance and property service valuation engagements include the following:

• valuation of a group of mortgage broking businesses; valuation required for bank finance
• valuation of an investment broking business; valuation required for bank finance
• valuation of an investment management company; valuation required for tax purposes
• valuation of a real estate business; valuation required to assist in valuing exiting members

valuation of four real estate officed; valuation required matrimonial purposes