Case Studies

Airline catering

A Pinders valuation was required regarding a proposed share purchase of a business supplying food to the airline industry. The factors considered were: whether any personal goodwill rested with the MD; the sustainability of the business considering the pressures faced by the airline industry and the pressures placed on its suppliers; the fact that there were no formal contracts; the specialist nature of the business and the fact that demand would be limited if the business were brought to the market.

Isle of Wight care home

A care home was bought with the benefit of planning permission resulting from plans drawn up by local architects. The owner intended to develop the building with funding from Abbey (Pinders’ client) before the permission lapsed. Fortunately, the Pinders’ valuer noticed that the plans did not meet the national CQC standards, thereby giving the owner the opportunity to reconfigure the plans to ensure full compliance. As a result, Pinders’ specialist knowledge of the sector prevented the bank's customer from proceeding with a costly development that was flawed.

Pinders' perfect prescription

Waitrose appointed Pinders to advise on the letting of pharmacies in the supermarkets being acquired from Safeway/Morrisons. Not only was advice given on premiums and rentals, but negotiations were conducted to cover lease terms, the re-positioning and re-fitting of individual units, restrictions on items to be sold, options to break and the maintenance of the dispensing contracts. Despite the complexities of the case and the location of individual units throughout England and Wales, terms and conditions were concluded to the client's satisfaction within difficult circumstances and timescales.

Diving Centre

Pinders provided valuation advice relating to a dive training business with ancillary retail and holiday facilities. It operated on a non-transferrable licence, but a formal lease was to be created. The purchaser was to run the business in conjunction with an existing adventure holiday company. The advice provided highlighted the high attrition rate of similar businesses and the risks involved when requiring non-competition clauses from existing operators.

Fridaybridge International Farm

Pinders provided valuation advice relating to a former POW camp, being used for accommodation for 350 seasonal workers. The 4.5-hectare site included a mixture of modern and former barrack accommodation, with ancillary leisure, retail and classroom facilities. The information provided by Pinders was used by the client to assess whether to support proposals to upgrade the site and permit residential development on unused land.

Benchmarking for The Orders of St John/Oxfordshire County Council

The clients selected Pinders for this benchmarking exercise because they considered its core database to contain more useful and substantial care market information than its competitors. In particular, the database allowed a detailed analysis of trading costs for similar sized corporate care homes in corresponding areas of the country, which was felt to be invaluable.

Pinders lodges comprehensive report

A Pinders report assessed (for lending purposes) the proposed development of a holiday park with 91 timber lodges and a leisure building, public house and swimming pool. This was a landmark scheme with little comparable evidence. However, using Pinders’ invaluable database of similar businesses, knowledge of other schemes and information gained from contacts, a comprehensive report was produced providing a breakdown of the likely gross development value of the site.

Pinders takes the pain out of pharmacy deal

A Pinders report valued a pharmacy, which was near four doctors’ practices and received high prescription income. However, it transpired that three of the practices would relocate within two years and a well-known chain was going to open a pharmacy to service them. Using their database of similar businesses, Pinders staff assessed the likely impact of these changes, resulting in a significant reduction in the sale price.

Report bowls client over

A Pinders report assessed the redevelopment of a ten-pin bowling centre to include a 1,050-seat bingo hall and gaming machines. The report assessed the scheme’s likely value and trading potential – assuming the proposed works had been completed – thereby enabling the lender to determine whether the £3m development loan could be re-paid. Pinders’ report also included a valuation of the proposed business as a going concern, and the likely implications of both the smoking ban and The Gambling Act 2005.