Compulsory purchase orders (CPOs) allow organisations to obtain land or property often for development. Compensation may become due to existing property owners and/or tenants who are displaced by a CPO.

Where a business is displaced by a CPO, the compensation due to the business owner may be in respect of a loss of profits the business expects to suffer as a result of having to relocate. In rare situations, a business may be unable to relocate and therefore ceases to trade as a result of a CPO. In such cases, compensation may be equivalent to the value of the entire business being extinguished by the CPO.

How we can help

We act on behalf of claimant businesses who are being displaced by a CPO as well as defendant organisations (such as developers or local authorities) who are in receipt of compensation claims. We can assist at various stages of the compensation claim process and may be instructed to assist with the following:

  • Preparation of compensation claims
  • Critical assessment of the strengths and weaknesses of compensation claims
  • Quantification of losses suffered as a result of business relocation
  • Business valuation where the displaced business is forced to cease trading

We advise both claimants and defendants in relation to compulsory purchase so are well placed to anticipate and advise on the challenges that may be faced by both parties.

Forensic accounting team

Typically instructed to provide independent and objective expert witness and advisory services in relation to matters involving owner-managed SME businesses.

Contact form

Forensic cases

Assessment of claim for transforming business

Assessing the merits of a claim made by a café owner under a compulsory purchaser order, identifying the additional information required in order to conclude on the amount of compensation payable and advising on the areas for negotiation and possible settlement figures. The assessment was made more complex by the fact that the claimant was attempting to take the opportunity arising from the relocation to transform their business from a café into a bar.

Assessment of claim for the closure of a branch

Assessing the merits of the claim from a charity shop under a compulsory purchaser order, advising on the additional information required in order to substantiate the claim and advising on the areas of negotiation and possible settlement figures. The shop acted as a drop off location for donations which were sold at other shops, making it difficult to determine the underlying profitability of the branch impacted by the compulsory purchase. In addition, the developer was conscious of the negative publicity of striking a hard bargain with a charity which meant that a different approach to advising on the negotiations was required.

Valuation of a café business

Valuing the business of a café in circumstances where an alternative location for the business was not available. The claim was based in part on the premise that the café had not been developed to its full potential due to the fact that the compulsory purchase order had been known about for some years.

Forensic accounting testimonials

Related news & articles