Forum

• # 55080
• Thu 10 Mar 2011 10:18 PM

Is it possible to put a value on the business of a sole trader?
I have a client who is a sole trader and has a financial form to fill in regarding his childs school fees, and he has asked me to help him complete it.
I have answered all the usual questions like net profit, income from savings, net income from rental properties, pension contributions etc but one question asks for the value of his business.
Is that something which only applies to a limited company?
My client is a sole trader who provides a service, so he doesn`t have any stock to put a value on.
Any advice would be very welcome.

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• # 55192
• Tue 15 Mar 2011 02:07 PM

Hi Steve

Sorry for the delay in replying to you any business can be valued however it can be a very immotive subject.

I would suggest punting this one onto his accountant if he has one as there are a myriad of ways to value a business at any given time in it's life cycle.

the problem is the good will element with a lot of sole traders as if the business is a small one where the customers enjoy the benefits of dealing with the proprietor what value would the business have if they were removed i.e. sold it to a new owner.

Best regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
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• # 55193
• Tue 15 Mar 2011 04:57 PM

Hi Stuart

I`ll do that. Thanks for your reply.

Steve

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