Charles Purcell

Slide 3

admin — Tue, 20 Sep 2011 02:38:55 +0000

Industry Benchmarks

admin — Tue, 20 Sep 2011 01:50:56 +0000

There can be no substitute for applying rational, justifiable valuation criteria to the valuation of any business. Following this, one stands back and considers whether the result is reasonable, is it consistent with the market place. Sometimes with the industry benchmarks one will then acknowledge that the market will pay more or less based on known practices. If one can be confident that the market will accept the benchmark, or “Rule of thumb” value then at the end of the day that may well be the value”

A R Burn “Practical Small Business Valuations”

Slide 6

admin — Tue, 20 Sep 2011 01:38:22 +0000

Slide 5

admin — Tue, 20 Sep 2011 01:38:06 +0000

Slide 4

admin — Tue, 20 Sep 2011 01:37:43 +0000

Professional Goodwill

admin — Mon, 19 Sep 2011 13:51:43 +0000

“In his analysis of goodwill Scruton LJ in Whiteman Smith Motor Co v. Chaplin likened the analysis of a client base to the “cat, rat and dog”. The cat prefers the old home to the person, the dog represents that part of the clientwho follows the person rather than the place, and the rat follows neither and drinks elsewhere. Arguably there is a furthercreature which should be added to the managerie, the donkey, which is the practitioner, or his banker, who simply believes that the value of goodwill can be determined by a rule of thumb.

A professional service firm is a business, and its value should be subject to the same criteria as those which apply to other commercial undertakings.”

Wayne Lonergan “The Valuation of Businesses, Shares and Other Equity”

Value

admin — Mon, 19 Sep 2011 13:48:35 +0000

“The value of all wares arise from their use; things of no use have no value, as the English phrase is, they are good for nothing”

Nicholas Barbon 1690

“Value is the representation of all future benefits of ownership, compressed into a single payment. Value is continually changing as expected future benefits increase or decrease with the passage of time. As a result, an opinion of value can only be expressed relative to a given moment, or “as of” a specific date”