Are you or your client expecting a compulsory purchase order? Through city centre regeneration projects, and new road and railway investments, many businesses will face the impacts of compulsory purchase orders.
However, with careful planning it need not be devastating.
Understandably, a compulsory purchase order can affect some businesses more than others. Those where their location plays a vital role in winning customers or clients will need particular care.
Our experience shows that responding to a compulsory purchase order, when tackled correctly, can become a fantastic opportunity for any business and its owners, no matter what their next chapter will be.
There are two ways to look at a compulsory purchase order.
Some business owners look at themselves as a victim and assume their business is done for, or will forever feel the impact of forced relocation.
But for others, and by far the better approach is to look at a compulsory purchase order as an opportunity. By taking this approach, you will look at a compulsory purchase order as not only just another challenge but an opportunity to develop the business.
To get the maximum compensation you deserve from a compulsory purchase order, you will need an expert experienced in compulsory purchase compensation to help you.
Why do you need a compulsory purchase expert?
Engaging an expert in compulsory purchase orders early in the process will help you to make the most of the situation.
Compulsory purchase experts will confidently assess the value of a business and its potential, subject to a compulsory purchase order in court.
An expert will help ensure you are fairly and adequately compensated so you can move on to the next chapter of your business and life.
What should you look for in a compulsory purchase expert?
A compulsory purchase expert should have extensive experience in:
- Valuing businesses.
- Being an experienced expert witness in compulsory purchase hearings, and achieving favourable results for their clients in those hearings.
- Putting together and coordinating a team to assist in other areas of the hearing (typically, this would involve a lawyer and a surveyor, and possibly relevant industry experts).
To ensure the expert you hire meets these requirements, it is best to look for a member of the compulsory purchase association.
What can you get out of a compulsory purchase order?
There is every chance that following a prepared plan you will receive fair compensation from a compulsory purchase order and have the flexibility to adapt to the changing business environment, putting you in a better position than your competitors!
A famous case of this happening was that of H. Forman & Son, a third-generation salmon smoker. The business had to move to make way for the new London 2012 Olympic Park.
After a lengthy case that made it to the supreme court, (a rarity for compulsory acquisition orders), the business received a generous, but fair compensation deal, which allowed them to move into new and larger purpose built premises.
They were able to add a restaurant and a mail order business, which have become extremely successful arms for the company.
An excellent result for H. Forman & Son, but such a win isn’t the exception for valuable businesses.
We recently worked on a case involving a skip hire business.
Despite closing their business, they made the most of their compulsory purchase order
When this skip hire business was hit with a compulsory purchase order, they thought it meant the end of their business.
The owners were nearing retirement and had thought about what would come next for their business. The prospect of the compulsory purchase order threw everything into disarray.
The business had to close, leaving them with only a few hundred thousand pounds worth of assets. Like many businesses, their income came from the revenue those assets continually generated.
And retiring with only the value of their assets was not an option. They had worked too hard to leave the business with next to nothing. So they contacted experts to assess their options.
To determine an acceptable payout for the owners, based on the actual value of the business I was brought in to lead the team of experts.
We had a lawyer review the legal and commercial aspects of the business and a surveyor to determine the property value. We also enlisted an industry expert to assess the potential for their commercial activities to the local area.
To determine the value of the business, I looked at it through the lens of the revenue it could generate going forward, based on the resources available to them, and goodwill.
In the end, we were able to achieve a £multi-million compensation settlement- A tidy sum for the owners and more than enough for a comfortable retirement. Certainly a better result than walking away with only the value of their assets!
Maximise your compensation from a compulsory purchase order
If you are faced with a compulsory purchase order, you must explore your compensation options with a qualified expert.
Vero Consulting can help. We offer free consultations to businesses. Following our consultation, you will have an idea of the likely compensation you may be entitled to so you can move forward with that in mind.
So if you’d like compensation that reflects the real value of your business, get in contact with us today.
We are highly skilled and qualified chartered accountants and expert witnesses that specialise in providing a wide range of forensic accounting, contentious business valuation and investigation services.
We provide the following services:
- Forensic Accounting Services
- Compulsory Purchase Compensation
- Commercial agency termination
- Business Valuations
- Financial and Fraud Investigations
- Financial Accountants for Divorce
- Expert Determination
- Insurance Claims – Loss of Profits
- Accountant Negligence Claims
- Commercial Disputes
- Litigation Support Services (русский)
We offer free consultations for all of the above services, to book one, get in contact with us.