How to value… a number plate!
September 17, 2024
Did you see that the DVLA is doing its latest auction of personalised plates?
Over the summer we discussed stock, how it could be valued and why examination of that issue matters. The other day I caught a fun article in The Times about the half a million pound number plate which got me thinking about the value in businesses which is even more hidden but which might need exposing in a valuation exercise.
I declare an interest as I recently bought a second-hand car to run around in, with the number plate “CEO 5URG.” I had not noticed the obvious when I bought it (being more interested in the low mileage!), but my team pointed it out to me and I then decided that the car had actually been a bit of a bargain as potentially there is quite a lot of value in the plate alone.
The great thing about the DVLA auction is all the data. You can see the starting price and what bid was successful for each number plate here: DVLA Auctions of Personalised Registrations . You can also see the results from previous auctions. As you can see the market often places double or more on the starting price. The Times points out that Internationally some plates go for £millions – such as NSW 1 which was sold in Australia for £6.5m.
It is clear that many believe that the value in the right number plates can grow significantly over the years. There are a number of sites where you can buy and sell number plates.
For a typical valuation, the number plates on the company cars is probably not a major area of focus, but that does not mean that the question should not be asked.
I remember a story that Raspberry Pi achieved its first sales in 2012 by auctioning its first ten boards on eBay. of its first MVP motherboards, because it had promised investors it would make a sale by a certain date,
According to Wikipedia “one was bought anonymously and donated to the museum at The Centre for Computing History in Cambridge, England.”[263][322]. The ten boards (with a total retail price of £220) together raised over £16,000,[323] with the last to be auctioned, serial number No. 01, raising £3,500 [324] . I can imagine that those boards are worth many multiples of that today.
As valuers, we like to think about the value hidden in unexpected places.
So often clients have a handle on what they think their business is worth. Our work will either reinforce their view or, sometimes, completely up end it. It is precisely because we think differently and look for value where others may not bother, that makes our reports so much more than just a number.
