Assets owned by the business

A realistic value for any business premises that are owned should be sought. Ideally, a specialist, such as a local estate agent, should do this. However, because there is likely to be a fee for the valuation of business premises, a client’s estimate of value may have to be accepted in some cases. Business premises are particularly susceptible to a fall in value caused by developments in the local area. For instance, the opening of a new supermarket could cause the collapse of a local general store (due to reduced trade) and a corresponding fall in the value of the business premises. Circumstances outside of the business’s control can reduce the value of its assets and the protection that the assets would otherwise have provided from financial problems.