Mixing Art and Science to Reach Accurate Values

Summary

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Valuation, especially in the post recessionary market, is virtually impossible to categorise or define. There are those academics who cannot sleep unless they have a mathematical formula which results in an 'accurate value'. In isolation, this method fails miserably. For example, when a multiplier of turnover formula is used to calculate total value, a business in a highly sought after location in South Devon will be considered to be worth the same as if it were moved and put into a less valuable location.

Each business and property must be assessed on its merits. A totally theoretical approach does not react rapidly enough to a change in markets of the voracity we are experiencing, especially as we have additional factors influencing values.

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Extract

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Mixing Art and Science to Reach Accurate Values

Principally, this is the availability of bank funding. ...

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