Emoov, which entered administration yesterday, was unlikely to be sold as a going concern anyway – says an estate agency analyst.
Speaking to website Estate Agent Today analyst Andrew Stanton suggests that there is little or no value in a pay-upfront business model.
Stanton told EAT: “Why would buying Emoov and Tepilo be a strategic move? For anyone?
“All you are buying is a company with lots of vendors on their books, but the cash has already been extracted from them upfront – and has been lost in the company’s losses. So you buy Tepilo and Emoov, and you inherit thousands of vendors, and then you have the liability to sell them as you are the new company, but there is no fee as it was paid upfront to the old company.”
Back in May when Emoov merged with Tepilo it was suggested the combined business was worth £100m, due to its technology platform and potential to return a profit.
Stanton’s claims certainly bring into question the value of all unproven online business models – in the absence of a proven, established brand name, goodwill, an ongoing income or bricks and mortar for that matter where is the value? It will be interesting to see what price, if anything, potential buyers put on Emoov now it is in administration.