It's not looking good! Melanie...help!

[Viki.W]

got my first valuation for my restaurant today.....£40,000! I can't believe it. He said because the accounts show a loss and only a possible break even this year that £30,000 for fixtures and fittings and £10,000 premium for location is all I can expect. Other valuation person phoning me with amount tomorrow and I've got a third coming next wednesday. With debts of approx £100K do you think that I can still proceed with a full and final IVA? He didn't even ask me any questions re opening hours, staff, and didn't even look around where as the one that came last thurs was there for ages so I'm not sure how realistic this valuation is. v.w

[MelanieGiles]

I am not suprised at the valuation - I think I expressed the same concern in one of my earlier posts. It is still possible to offer a full and final settlement based on a lower amount. What did the valuer say who did come last week?

[Viki.W]

She's been a bit slow coming back to me, she needed 07 accounts and my accountant hasn't done them, he didn't send my self ass off in time either, I pay him £94 standing order per month for all this shabby service but as soon as he has done this and VAT (I'm on annual accounting) then I am changing to a local firm who are chartered (he isn't) They were shocked with the advise he had given me (Dad remortgage to pay my debts off) and how he hasn't done my accounts yet. He spoke to the valuer this morning and gave some info that she needed but she hasn't returned my calls, hopefully she'll tell me tomorrow but she wouldn't give me any indication at all. The guys coming next week specialise in business transfer and have a lot of restaurants on their books where as these two have mainly empty shops, retail space etc. I know I sound like I'm making excuses for that valuation, I know in my heart that it is going to be lower than I think it's worth. I suppose I just needed a bit of reassurance from you that you could still consider a f&f iva, otherwise I have nothing to aim for I guess. Thanks Melanie, sorry to keep you up, kind regards, v.w

[jpj]

You are doing the right thing shopping around. when I sold my delicatessen business some valuations were double others!! we went for a high valuation in the end and got it!
I did an IVA and paid 18p in the £ on debt of £127k so all is not lost for you yet...hang on in there!

[Viki.W]

Thanks jpj, you've made me feel a whole lot better. I've been so worried about everything. Yesterday, I just felt like closing for good if It's not going to make any different to the valuation. I think when you work so hard and long (eight and a half years) that you expect better but, hey, I've just got to deal with this until it's all over. I might get a couple more people to value it this week and go from there. Thanks for yoursupport, enjoy the day, it's like Florida here in Liverpool! [8D]

[jpj]

Good luck
Hope it all works out for you.... )

[Viki.W]

valuer still won't give me an idea because she didn't get all the info from accountant and he said he won't have it until tomorrow. I spoke to him and he apologised and told me to advertise it in the local paper for £90k with a view to selling it for £80-85k. I'll wait for some more professional valuations to come in first. Hmmm, I'm not very good at waiting.

[jpj]

Its a tense time for you but hang on in there... Although things are tough im sure you will get more if you keep the place trading!!
It could be worth sticking it on a few "business for sale" sites on the net personally too once you have a set figure, at least that way you wont be relying just on an agent!

[Viki.W]

Thanks jpj, I think I will do that, I've been looking at a site already, that would save on fees aswell. I'll wait for these valuations and then take the average, I suppose that is the best way. v.w

[jpj]

Yeah...just set your price realistically....and whatever you do, dont look too desperate to sell...buyers sense a desperate seller and will screw you into the ground...just make out YOU are doing THEM a favour by offering to sell to them a goldmine that you havent had time lately to fully realise the potential of!!