If you are considering buying a bar, restaurant, cafe, pub or other catering business then we would highly recommend that you get an independent stock valuation on the day of completion. This is one of the biggest assets of the business so you need to know what it is you are buying.
Your independent stock valuation will tell you how much food and liquor stock you are purchasing with the establishment. It will also tell you how much this stock is worth. It is very important that an independent stock valuation takes place as this will then be fair and representative to both parties.
What Is Covered In A Stock Valuation?
Typically a stock valuation will take place when there is a change of ownership. The stock valuation will show, at cost, the value of the stock that is held. Ideally it is just drink (wet stock) that is handed over from old owner to new owner. However, if there is food remaining it is recommended that a figure is agreed between the parties.
At the end of the stock valuation, a copy of the report will be given to both parties along with documentation that is suitable and required by the accountants of the seller and the buyer.
Does The Independent Stocktaker Work For The Buyer Or The Seller?
Your independent stocktaker can work for either the buyer or the seller. However, it is often quicker and cheaper if both parties agree to use the same independent stock valuer. By having a joint stock valuation it prevents duplication and ensures consistency. It also removes the need to compare and contrast the 2 different stock valuations.
If you have found a pub, bar, cafe, restaurant, hotel, club or any other hospitality or catering business and you’d like an independent stock valuation before you purchase the business then contact us directly. We are highly experienced with many years experience in the catering and hospitality industry. We will be happy to complete your stock valuation for you.