Definition: Scales 

Tax scales are used to calculate the value of business assets, taking into account not only their nature, but also all the specific features of the business to be valued.

Using the 2019 Tax Scales

The tax scales are unofficial scales, established and circulated among professionals such as bankers, notaries....

It should be noted that each scale establishes a coefficient to be retained, different according to the sectors of activity. It is therefore essential to establish precisely the sector of activity of the business in order to use the scales correctly. For example, for pet shop businesses, this percentage is between 50 and 60% of the annual turnover including VAT.

This single valuation method cannot be satisfactory in the context of the valuation of a business and must be used with caution and weighted with other valuation methods .

The strength of a XVAL valuation is the delivery of a detailed and documented report within 3 days, justifying the methods and assumptions used (EBITDA restatement, coefficient...) which will be the basis for discussions with the buyer, the banker.

If you would like to know more about the use of tax scales, please contact one of our experts: contact a XVAL consultant.