On the money with Gavin Hinks

The process of appointing valuers for B&B is well advanced but it’s intriguing that the work has attracted more interest than the Rock. Before BDO Stoy Hayward got that particular posting there was speculation that it was a poisoned chalice. It was too risky, the shareholders too active and aggressive to make it a pleasant and straight-forward experience.

Actually, there were always far more candidates for the Rock job than the City pages let on. And, though there are PR risks, the valuer was always going to be indemnified by government.

Of course that wasn’t the main attraction. The Rock pays £4.7m for the valuation and then its back on to rate card to deal with any appeals. Lucrative? I should say so.

Which is probably why B&B is so interesting. BDO paved a way, showing some mettle when it mattered and now other firms, boutiques and investment banks, have cottoned on to the fact that this, though not without its challenges, could be a decent bit of work to be involved in.

It’s high profile, will catch the eye of other potential clients and opens the door to government and the public sector ­ the only people around at the moment with any money.

And there’s the real attraction. Revenues aren’t so good and the risk of getting involved in valuing a failed bank is far outweighed by the money it will bring in. Four to five million on a balance sheet is going to look good by anyone’s standards.

Care has to be taken though. That’s not an attitude any firm should let dominate its search for work. You have to draw the line somewhere. I suspect however, that B&B will be within tolerance levels.

Gavin Hinks is editor of Accountancy Age