Buying a Business? Why You Need a Property Valuer, Not an Estate Agent
Understanding the Importance of Independent Valuation in Mergers, Acquisitions and Property Transfers
When a business is bought or sold, the property it occupies is often a key part of the transaction and in many cases, it’s one of the most valuable assets involved. Yet surprisingly often, property is transferred based on assumptions, outdated figures, or informal input from estate agents.
If you’re acquiring or merging with a business and inheriting property as part of the deal, an independent valuation should be one of your top priorities. It’s not just about numbers on paper; it’s about risk, compliance, and making sure you’re paying the right price.
Why estate agent figures fall short
Estate agents can provide useful market insight by way of a market appraisal, but their valuations are typically geared toward marketing properties for sale. In M&A transactions, where there may be no intention to sell the property, relying on these figures can create a false sense of accuracy.
Estate agents may also have a vested interest in the outcome or lack the technical expertise to assess all relevant factors such as lease terms, condition, repair liabilities, planning constraints, or changes in demand for a specific property type.
An RICS Registered Valuer, on the other hand, provides a detailed, impartial assessment of the property’s market value, using recognised methodology and drawing on technical insight and market knowledge. This ensures you have a clear and defendable figure for due diligence, accounting, or tax purposes.
Case Study: A Closer Look Saved £75,000
We were recently appointed to provide a valuation as part of a business acquisition involving a small industrial unit in Derbyshire. The seller had commissioned an estate agent’s valuation a year earlier, which had been included in the Heads of Terms.
Our independent inspection revealed several key issues: a short unexpired lease term, restrictive user clauses, and notable repair liabilities that had not been addressed. Factoring these into our assessment, the Market Value was £75,000 lower than the original figure.
Our client was able to revise the purchase terms to reflect the true value of the property, ultimately securing a better deal and avoiding a potentially costly oversight.
The value of independence
At Bramble & Wagg, we offer completely impartial commercial property valuations. We don’t have a stake in the deal. We’re not trying to sell you anything. Our only role is to provide a reliable, professional opinion of value that stands up to scrutiny.
Whether you’re transferring property as part of a merger, buying out a partner, or acquiring business assets, it pays to know exactly what you’re taking on and what it’s worth.
We provide clear, RICS-compliant reports that support confident decision-making and give you the facts you need to negotiate effectively.
Get in touch today to discuss your commercial valuation requirements. We’re here to offer expert advice, whether you’re just starting to explore a deal or reviewing terms ahead of exchange.
