Crawfords Accountancy

Asset valuation

Assets always sell for less at auction—or do they?

Alex Kachani was appointed trustee in the bankruptcy of L whose estate included 4 acres of grazing land.

The Official Receiver had obtained a valuation of £12,000.

Alex’s valuer thought £15,000 sounded better.

Alex decided to offer the land for sale by auction. A presale offer of £20,000 was received, increased to £23,000 by negotiation.

The figures are not huge in this case but the near doubling of the bottom line is very significant.

That’s where experience comes in!