Business Valuation Appraisal
Scale of Fees
|
Form |
Details |
Fee |
| Written - Short |
Appraisal (1-3 pages) |
$1,100 - $1,900 +GST |
| Written - Long |
Appraisal |
$2,000 - $5,000 +GST |
| Extras |
Court attending/travelling etc. |
$240/hour + actual costs+ GST |
| Opinion |
(Written) |
$240/hour (min $480) + GST | |
Business Valuation Methods
Valuing a business in not a precise science and can vary significantly depending on the type of business and the reason for going to valuation. There are a wide range of factors that go into the process - from the book value, to a host of tangible and intangible elements. In general, the value of the business will rely on an analysis of the company's cash flow, future risks, land opportunities and market demand.
A business ability to generate consistent profits will ultimately determine its worth in the market place.
Business valuations are usually considered to be a starting point for both buyers and sellers. It's rare that buyers and sellers come up with a similar figure, if, for no other reason, that the seller is looking for a higher price. The goal should be to determine a ballpark figure from which the buyer and the seller can negotiate a price that they can both live with. Look carefully at the number, but keep in mind this quote: "Businesses are as unique and complex as people who run them and are not capable of being valued by a simplistic rule of thumb." These are some of the common methods used to determines a business valuation.
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Asset valuation
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Capitalization of income valuation
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Owner benefit valuation
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Multiplier or market valuation
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Return on Investment method
There are numerous ways of Valuing a business. Some are more subjective than others. Whichever method is used to determine the value of a business at the end of the day market forces rule. Your Business Broker will be aware of these and can assess the likely sale outcome at any given time.
Benchmark Business & Commercial Sales offers fee-based advice on business value and provide business appraisal and valuations. Please contact the Principal for details. | 
