Goodwill

FIND OUT THE VALUE OF A BUSINESS SUBJECT TO A LICENSE

Certain types of activities regulated by licenses, as is the case with chemists, the lottery or tobacco shops, may be interested in finding out the value of their business when faced with various situations, such as a transfer, sale, distribution due to inheritance or a divorce, justification of value for the Tax Office or the addition of new investors/loss of investors.

The key is in the value of the activity within the regulations imposed by the standard (the business), excluding real estate assets that may be owned. The valuation of this intangible asset, also called goodwill, is based on cash flows that the activity can generate under a business plan. This applies to any business run by self-employed workers and/or professionals who declare their taxes by direct evaluation (not modules).

PROFESSIONALS AND/OR SELF-EMPLOYED WORKERS
WHO RUN, MANAGE, OWN REGULATED BUSINESSES

CHEMISTS, TOBACCO SHOPS, PETROL STATIONS, TAXIS, ETC.

PROFESSIONAL ASSOCIATIONS OR RELATED COLLECTIVES

FINANCIAL INSTITUTIONS

1. THE SITUATION.
A client needed to value goodwill because he had inherited a chemist and the deadline from the Chemist Association for management by a non-member owner had passed. He needed to sell the chemist’s license or he would lose ownership. At what price could he sell it?

2. OUR SERVICES.
Tinsa issued a goodwill valuation report, using the discounted cash flow method and based on the data supplied by the client, in the economic situation and using the sector’s average ratios.

3. THE RESULT.
Thanks to the analysis provided by Tinsa, the client was able to put a price on the chemist’s license in line with the current market rates.