Business Transfer Stocktakers
Impartial stock counts and valuations when a business changes hands, carried out fairly for both buyer and seller.
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Our Services
Post Office Stocktakers
Independent counts and valuations of the retail shop stock in Post Office branches, kept separate from Post Office-owned stock and cash.
Most Post Office branches sit inside a shop: a convenience store, newsagent, card and stationery shop or village store. When the business changes hands, the buyer and seller need an agreed figure for the retail stock on the shelves, and that figure is usually best produced by someone with no interest in whether it comes out high or low. We provide independent stocktakers who count and value the retail side of the business and report it in a form both parties and their advisers can work from.
It is important to be clear about what we do not do. The cash, stamps, postal products and other stock that belong to Post Office Ltd are reconciled through Post Office’s own processes, not by an independent stocktaker. We do not count or audit Post Office cash or stock, we do not carry out branch audits, and we are not connected with or appointed by Post Office Ltd. Our work covers the shop stock owned by the retail business and, where agreed, any other stock the postmaster owns.
What's included
- Retail shop stock counted and valued independently
- Post Office-owned stock and cash kept outside the count
- Counts timed around the business transfer date
- Cards, stationery, gifts and seasonal stock counted by line or department
- Sale-or-return, damaged and out-of-date items listed separately
- One report for buyer, seller and their advisers
When postmasters need a stocktake
The most common reason is a change of postmaster, where a retail business with a Post Office branch is being sold and the shop stock is bought separately from the goodwill and fixtures. There are other occasions too.
- Sale or purchase of a shop with a Post Office branch
- A new postmaster taking over an existing retail business
- Year-end or period-end stock figures for the accounts
- A change of partners or shareholders in the business
- Investigating shop losses or unexplained margin changes
- Closing, relocating or refitting the retail side of the shop
What the count covers, and what it does not
Getting the scope right before the day avoids most disputes afterwards. We agree in writing what is in the count and what is not, so the buyer, the seller and their solicitors all start from the same list.
Typically included is everything the retail business has bought for resale: groceries, drinks, confectionery, tobacco, newspapers and magazines where owned, cards, stationery, gifts and household goods, wherever they are held in the shop, stockroom or storage areas.
Excluded from our count are the cash, stamps, postal products, foreign currency and any other items owned by Post Office Ltd. Those are dealt with through Post Office’s own process when a branch changes hands. Fixtures, fittings and equipment are not part of a stock count unless you ask us to list them separately.
Keeping Post Office stock separate
In a combined shop and counter, the two kinds of stock can sit close together, and some products look similar. Before counting starts we walk the premises with the postmaster and agree which areas, shelves and items belong to Post Office Ltd and are therefore outside the count.
Where the postmaster has bought stock of their own that is sold alongside the counter, such as their own packaging, envelopes or stationery, we can include it if both parties agree. Anything whose ownership is unclear is listed separately for the parties to decide, rather than being guessed at.
Retail stock in a typical branch shop
Shops with a Post Office counter vary from a small village store to a large convenience store, and the range of stock varies with them. We plan the count around what you actually stock and where it is kept.
- Grocery, household and toiletries
- Chilled and frozen food, and fresh produce where held
- Soft drinks, beer, wine and spirits
- Confectionery, snacks and crisps
- Tobacco and vaping products, including the gantry
- Newspapers, magazines and partworks
- Cards, stationery, toys and gifts
- Stockroom, cellar, garage and other storage areas
Cards, stationery, gifts and seasonal lines
Card and stationery stock can hold significant value and is easy to undercount. Greeting cards are frequently priced individually, sold from spinners and drawers, and held in back-up stock under the counter. We count cards by price point or by line, as agreed, and include any reserve packs in the stockroom.
Stationery, wrapping paper, gift bags, toys and gifts are counted in the same way. Seasonal stock, such as Christmas cards, calendars and Easter lines, can be valued at full cost, at a reduced value or listed separately if the season has passed. That treatment is for the buyer and seller to agree; we apply whatever is agreed and show it clearly in the report.
Newspapers, magazines and sale-or-return items
Newspapers and many magazines are commonly supplied on a sale-or-return basis, so unsold copies may not belong to the business at all. Whether they are included, excluded or listed separately depends on the supply terms and on what the parties agree.
The same question applies to other items the shop holds but may not own, or which are settled with a supplier only when sold or activated at the till, such as lottery scratchcards, gift cards, mobile top-up and some consignment lines. We list these separately unless told otherwise, so they can be dealt with in the completion figures as the advisers see fit.
Damaged, out-of-date and slow-moving stock
Every shop has stock that is not worth its full price: dented tins, short-dated chilled goods, faded cards, discontinued lines and returns awaiting collection. In a transfer, this is where disagreements usually start.
We identify these items during the count and record them separately, with a description and quantity. The parties decide in advance whether each category is included at cost, at a reduced value or excluded altogether. Anything still disputed stays listed separately for the advisers to resolve.
Valuation, margins and VAT
The count produces quantities. Turning those into a value needs prices and an agreed method, which we confirm with the instructing parties before the day.
Cost prices
Where reliable cost prices are available, for example from recent invoices or the shop’s own product file, stock can be valued line by line at cost.
Retail value less agreed margin
Where cost prices are not available, as is common with cards and mixed gift stock, stock is counted at its selling price and reduced to cost using departmental margins agreed by both parties. We do not choose the margins ourselves.
VAT
It is common practice to value stock net of VAT, but treatment varies and zero-rated and standard-rated goods may need handling differently. The accountants or solicitors should confirm the treatment before the count; we apply what is agreed.
Timing around the transfer date
For a business transfer, the stock figure should reflect what is on the premises at the moment ownership changes. Counts are usually carried out after closing the evening before completion or early on the day itself, so that no sales happen between the count and the handover.
The Post Office side of the transfer follows its own timetable. We plan our attendance so that we are counting the shop while that work is carried out separately, and do not get in the way of it. Your Post Office contact can confirm when their part will take place.
If the shop has to trade during the count, sales and deliveries are recorded and adjusted for. That is agreed before we arrive.
Preparing for the stocktake
A little preparation shortens the count and reduces the chance of disagreement. We send a checklist when the date is booked; the main points are below.
- Stockroom tidied, with stock grouped by type where possible
- Deliveries due near the transfer date either received or held back
- Damaged, out-of-date and returns stock set aside and labelled
- Sale-or-return and consignment items identified
- Post Office-owned areas and stock pointed out
- Any agreed margins, cost price lists or product file to hand
- Someone available who knows where everything is kept
Reports for buyers, sellers and advisers
You receive a report that both parties can rely on and that the solicitors can use in the completion statement. What is included, and when it is issued, is agreed when we quote; typically it covers:
- Quantities and values by department or line
- The valuation basis, margins and VAT treatment applied
- Damaged, out-of-date and slow-moving stock listed separately
- Sale-or-return and consignment items, shown apart from owned stock
- Any disputed items, with notes on what is in question
- A summary total for the completion figures
What happens on the day
- 1
Scope and quote
We agree what is in and out of the count, the valuation method and the timing, and send a written quote before anything is booked.
- 2
Walk-round on arrival
With the outgoing and, ideally, incoming postmaster, we walk the premises and confirm which areas and items are in the count and which belong to Post Office Ltd.
- 3
Counting the shop and stockroom
The shop floor, back-up stock and storage areas are counted area by area, with each one marked complete before moving on.
- 4
Separating exceptions
Damaged, out-of-date, sale-or-return and disputed items are recorded separately so they can be dealt with on their own terms.
- 5
Rechecks and sign-off
Queried areas are rechecked, and both parties are invited to review the count before it is closed.
- 6
Report
The valued stock report is issued to the instructing parties in the format and timescale agreed at the quote.
Frequently Asked Questions
Do you count the Post Office cash and stamps?
No. Cash, stamps, postal products, foreign currency and other items owned by Post Office Ltd are reconciled through Post Office’s own processes. We count and value the retail shop stock, and any other stock the postmaster owns if the parties ask us to include it.
Are you connected with Post Office Ltd?
No. We are an independent stocktaking business instructed by postmasters, buyers, sellers and their advisers. We are not appointed by or affiliated with Post Office Ltd, and our count does not replace any Post Office process.
When should the stocktake take place?
As close as possible to the moment ownership changes, usually after closing the evening before completion or early on the transfer day. We confirm the timing with you when we quote, around both parties’ arrangements.
Who pays for a business transfer stocktake?
That depends on the sale agreement. Sometimes the buyer pays, sometimes the seller, and often the cost is shared. Your solicitor can confirm what has been agreed; we invoice whoever instructs us unless a joint arrangement is set up in advance.
Can the buyer and seller instruct you jointly?
Yes. A joint instruction means one count and one report that both sides receive. The scope, valuation method and treatment of damaged or sale-or-return stock should be agreed by both before the day.
How do you value greeting cards and stationery?
Cards and stationery are usually counted at their marked selling price, by price point or line, then reduced to cost using a margin agreed by both parties. If cost prices are available, we can use those instead.
Are newspapers and magazines included?
Items held on sale-or-return may not belong to the business, so they are normally listed separately or excluded. The parties decide how to treat them, based on the supply terms.
What happens to damaged or out-of-date stock?
It is recorded separately during the count. Whether it is included at cost, at a reduced value or excluded is agreed by the parties, and the report shows exactly what was done.
Is the stock valued with or without VAT?
It is common practice to value stock excluding VAT, but the treatment should be confirmed by your accountant or solicitor before the count. We apply whatever has been agreed.
How long does it take?
It depends on the size of the shop, how much back-up stock is held and how much is priced individually, such as cards. A small branch shop may take a few hours; larger stores take longer. We give an estimate when we quote.
How much does it cost?
Price depends on the size of the shop, the amount and type of stock and the reporting required. Tell us about the business and we will send a written quote before anything is booked.
Other services
Retail Stocktakers
Independent shop floor and stockroom counts for independent and multi-site retailers, valued at retail or cost.
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Year End Stocktakers
Independent year end stock counts and valuations, prepared for your accountant and annual accounts.
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Need a stocktake arranging?
Call us for a no obligation quote, or send through the details of your premises and we will come back to you the same working day.