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Nursery valuation?


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Hi All

Wondered if anyone could help me; if I was hoping to purchase a nursery, would an accountant be able to give me a valuation of the business based on the accounts? Or would I need a specific business valuer to look at it? Any advice gratefully received! X

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A friend of mine has recently had her nursery valued- and the figure was about 4 times the annual profit. I'm sure it's not an exact science and there are many variables though, but this might give you a ball park figure.

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go and speak to your accountant. Valuers will often try to add value by including 'good will' in other words they will value the exsisting customer base. This is not an asset and cannot be guaranteed so (IMO) you shouldn't pay for it! a decent accountant should be able to give you advice about the true value of the assets ...you should be armed with the last 3 years of accounts (audited preferably)

Business advisors at your bank can often be helpful and you should get their services free of charge.

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