contact

Head Office
+44(0)20 8392 0193

Stuart Whitwell
+44(0)77 4703 7824
stuart.whitwell@intangiblebusiness.com

Thayne Forbes
+44(0)7979 655653
thayne.forbes@intangiblebusiness.com

Paul Cliff
+44(0)7966 262288
paul.cliff@intangiblebusiness.com

 

ONLINE ENQUIRY FORM

Experts in business and intangible asset valuation

You are here

Provide Valuation Based on Residual Goodwill for Career Moves Ltd

Client: MCR

Brief

Intangible Business was asked by MCR to provide a valuation of Career Moves Limited in order to assist the administrator to determine the value of any residual goodwill in preparation for a pre-package administration. Career Moves is a London-based media recruitment agency specialised in providing permanent, contract and temporary recruitment services to the media industry.  Clients include BBC, ITV, Pearson Group, MTV, Nickelodeon, FT.com and Apple/iTunes.

As a provider of services to the job market, Career Moves’ business prospects are inextricably linked to the wider economic climate of the UK economy.  Clearly the recession had and continued to have a significant impact on Career Moves’ business. The residual goodwill pertains to the relationships of management and senior consultants with the company’s blue chip customers. 

Approach

Only market and income based valuations methods were considered as cost approaches were not relevant in this instance.  The market for recruitment consultancies was particularly depressed while the business was expected to continue making losses despite attempts to reduce overheads.

The key motivation for a third party acquirer to buy Career Moves would be the relationships with the current list of blue-chip clients.  However, the relationships are not contractual and are tied to the key management team of Career Moves.  An acquirer would attribute a high risk to the fact these key employees could move, on taking these relationships with them, and therefore Intangible Business determined that the Career Moves business would have little, if any, residual goodwill on a market basis.  

Result

The valuation report provided assurance to the administrator and directors that any value resident in the Career Moves business had been fully accounted for.