Retail, Hospitality & Leisure Business Valuation Expert Witness UK
Retail and hospitality businesses are site-specific: location, lease terms, and local competition drive value as much as headline EBITDA. IFRS 16 right-of-use assets and lease liabilities require experts to address whether EBITDA or EBITDAR is the appropriate earnings measure.
Litigation involving pandemic-period accounts demands clear normalisation - adjusting for forced closures, furlough, bounce-back loans, and recovery trajectories. Courts require justification of why historic COVID-era earnings are or are not representative of maintainable future earnings.
Compulsory purchase, lease renewal, and landlord-tenant disputes may also require goodwill valuation for extinguished or relocated businesses.
| Sector / asset | Typical multiple / basis | Notes |
|---|---|---|
| Hospitality / hotel (UK) | EBITDA 4×–8× (lease-adjusted); EBITDAR where IFRS 16 applies | Site-specific; long leases reduce marketable value |
| Retail (multi-site) | Maintainable earnings × sector multiple | COVID-era earnings require normalisation in litigation |
Indicative ranges from published transaction surveys and expert witness practice; case-specific evidence required for court.
Common questions
- How does COVID affect retail and hospitality valuations in litigation?
- For businesses valued in or around the pandemic period, expert witnesses must normalise earnings - adjusting for forced closures, furlough income, bounce-back loan distortions, and the subsequent recovery. Courts require a clear explanation of why historic earnings during COVID are or are not representative of maintainable future earnings.
- What role do leases play in hospitality valuations?
- Under IFRS 16, long leases appear on the balance sheet as right-of-use assets and lease liabilities. Expert witnesses must address whether EBITDA or EBITDAR is the appropriate earnings measure and how lease terms affect the business's value compared to freehold alternatives.
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