Partnership Disolutions Valuations

Partnership disolutions are a common reason why a business valuation report is required. When a business partnership comes to an end it usually reveals a lack of formal planning and a lack of a pre determined partnership agreement which sets out how the partnership is to be dissolved and the assets are to be divided up.

One partner (the outgoing partner) may have a higher opinion of the worth of the business and the value of its goodwill, whereas the partner who remains will obviously prefer to pay less to buy his partner out.

It is usually innapropriate to have the accountnat of the business attempt to value the business for the partners as he may feel a conflict of interest as he is likey to be continuing as the accountant for the partner who is remaining with the business.

The best and most professional solution is to have a business valuer come in and give an expert opinion on the market value of the business. By appointing an independent business valuation expert the partners can also diffuse any tension which may exist where spouses or relatives are involved. Professionalism replaces emotion. A Business Valuer Network associate can visit the business, interview the partners and the accountant and then prepare a comprehensive market valuation on the business based on comparative market evidence.

We are expert in business valuations in New South Wales and all other mainland states. Call 1300634588 now.