Sales on a net asset formula should include items of intellectual property (trademarks, patents, copyright and design) and intangible assets (leasing contracts, subscription lists, client and service contracts, brands, know-how, R&D, trade secrets, proprietary technology etc). Only a few valuers in the UK value these assets on a ‘daily’ basis.

Intellectual property is integral to a considerable amount of plant and machinery, and hence its valuation.  Typically we will work and report jointly with those specialist appraisers.

We are regularly instructed by international surveying practices including our sister company BNP Paribas Real Estate, in connection with occupational premises such as hotels, nursing homes, schools, retail premises and theatres. Our expert witness valuation work has included hotels. For non-contentious accounts reporting purposes and debt restructuring our occupational premises valuations have been adopted by multinationals.

Many in the surveying world recognise in principal but not always in practice, the need for a combined expertise of valuation skills, notably those with fixed asset skills and intangible asset skills. GoIndustry is a typical client. This process acknowledges that the basic challenge is valuing not only real estate or plant and machinery and a business, but a combination of business and real estate or plant and machinery. Clearly premises and businesses such as hotels, nursing homes, retail outlets and schools include elements that represent a going concern, as opposed to simply being realty, personality (furniture and equipment etc) and improvements.

In the hotel matter where we have appeared as Expert Witness, our overriding preference was to use the income capitalisation and discounted cashflow approaches. Generally occupational premises, particularly first tier hotels, are unique forms of real estate; in addition to land and improvements, they are labour intensive retail businesses that are extremely dependent upon the management skills and brand of the hotel operator. Typically chain affiliated hotels will outperform independent concerns and affiliation to a group produces premium value which is again indicative of intangible value.

Expert testimony acting for DeVere Hotels regarding the valuation of leading branded golf courses, hotels and significant goodwill at the VAT Tribunal is public domain.