How politics can interfere with a valuation exercise…<\/p>\n
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It seems appropriate this week to examine the value of unusual assets! Take a dustbin for example, or even an upended decorated dustbin. What is it worth?<\/p>\n
Context in a valuation is everything. We often explain that even the value of a paper bag can vary. On a sunny day it might have a healthy value, unlike on a rainy day where its only value would be for compost.<\/p>\n
In the context of a bin, there are scenarios where it could be very valuable. Not just on the head of a Radio 4 comedy writer, but perhaps as a repository for hazardous waste. Clearly the bin would have to be reinforced in an appropriate manner.<\/p>\n
Then there\u2019s a bin owned by Marilyn Monroe which sat by her dressing table. That would have a celebrity memorabilia premium surely? Any old bin bought from a shop or DIY shed could become a liability if you have to get rid of it post use by paying for it to be put in a recycling centre or dump.<\/p>\n
There\u2019s not much point in examining the potential value of most bins based on what they are made of, but with metals like copper much in demand, it is possible that some metal bins (e.g. for ash collection next to a fire) might have a materials value which should not be ignored.<\/p>\n
A celebrity upside down bin may be super valuable for the next 24 hours, but, come Friday, could it be even more valuable as it will have to sit under someone\u2019s arm as they as they swear loyalty to HM the King? Or will it be a worthless gimmick waiting to be brought out another day?<\/p>\n
And then of course there are bin businesses. After all, where there\u2019s muck, there\u2019s brass. Waste bin manufacturers, waste collection companies, waste sorting companies, recycling companies, recycling centres and even companies specialising in marketing and selling waste services. Let your imagination run and you can find value in bins everywhere! Indeed, according to IMARC Group the UK waste and recycling market in the UK alone was worth US$42.5bn in 2025 and is expected to rise to $63.8bn by 2034.<\/p>\n
Politics has a regular habit of getting in the way of a valuation exercise. We always value on a specific date, but can you imagine what US foreign policy can do to the value of a company based in the UK. With the oil price ricocheting up and down without predictability, the date of valuation becomes super important.<\/p>\n
Should you value on a Friday when the oil price is down, or on the Monday when due to political action the oil price has suddenly shot up again? Or do you check whether the company being impacted by a change in the oil price is hedging its risk \u2013 in which case should you use that price? Maybe you have to take a moving average, or a weighted average, of the key number to make sure you have reflected what we call the date of valuation risk.<\/p>\n
You might wonder why we are bothered about this issue at Athla. It\u2019s because the date at which one of our valuations may be challenged might be many years hence. Looking back at the first half of 2026 in 2040 means days will probably have blended into weeks, if not months, in the mind\u2019s eye. Who will remember the spot price of oil on a Friday vs a Monday? So the onus is on us to explain TODAY in detail why we have chosen Friday or Monday, to get rid of that potential problem in the future.<\/p>\n
I won\u2019t talk about how tax policy changes valuations. That\u2019s a PhD for another day!.<\/p>\n
If you have any valuations, complex or simple, that need finishing yesterday or in the next few months, do let us know. We would be delighted to help. In the meantime, I\u2019m off to sort out my recycling which now comprises four bins of different shapes and sizes!<\/p>\n","protected":false},"excerpt":{"rendered":"
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