Upon the termination of a commercial agency relationship the agent can be due compensation. The amount of compensation payable is calculated as an amount equivalent to the value of the agency business at the time that the agency relationship was terminated. The value of the agency business is based on what a third party might reasonably be expected to pay for it at the point of termination.
We use our extensive business valuations expertise to assess the value of the agency business at the time that the agency relationship was terminated. As with any business valuation there can be a number of factors to consider in quantifying the compensation due on termination of a commercial agency relationship. In an agency business, the situation is often complicated by the existence of multiple agencies and the sharing of common resources including both overheads and the individual(s) acting as the agents. We take a pragmatic approach to apportioning costs in such situations in order to be able to prepare a robust quantification of compensation but in a cost effective way.
We have quantified the compensation due following termination of commercial agency relationships on behalf of both agents and principals.
Quantification of compensation on termination of agency – academic study guides
Quantification of compensation on termination of agency – interior decoration
Typically instructed to provide independent and objective expert witness and advisory services in relation to matters involving owner-managed SME businesses.