Are you buying a Bar… get an independent stock valuation
If you are buying a bar, pub, club or other business in the hospitality sector it’s highly recommended that you get an independent valuation of one of the businesses biggest assets… stock.
You will be buying the hospitality business, including the liquor and food stock, and so it makes sense to be very clear about the value of the inventory and be sure that it is fair and representative to both parties.
By using an independent stock auditor both parties can be sure of a level playing field, providing peace of mind and reducing stress in what can be a challenging time.
What does a stock valuation cover?
Typically a stock inventory at a change of ownership will show, at cost, the value of stock holding, with the drink being broken down to individual products.
Generally, it is advised that there is no food left to hand over however, if there is some remaining then it is usually advised that a figure is agreed. Find out more.
Both parties will receive a stock valuation figure & report, as well as documentation suitable for both buyer and seller accountants.
Can an independent Auditor work for buyer and seller?
A stocktaker can work for either the buyer or seller but it is often quicker and cheaper for both parties to agree to use the same independent valuer.
A joint valuation audit prevents duplication, ensures consistence and removes the need to compare and contrast 2 different valuations.
How do I choose an independent stock valuer?
When looking for a valuation expert that both parties can trust, it is recommended that you consider the following:
- Are they a member of ILTSA, the only qualifying body for the Licensed Trade. Member of the Institute means that the stocktaker has passed professional exams and works in accordance with a professional code of practice
- Experience in stock valuation and in the particular hospitality sector
- What do their clients say about them and their service
Find out more about stock valuations
Paul Hunt, of Hunt Management Solutions, is a qualified and experienced licensed trade stocktaker covering Wiltshire, Gloucestershire, Bath and the South West of England.