REIQ Best Practice Guidelines v03.23 - Flipbook - Page 71
5. REQUESTING AN APPRAISAL OF
A BUSINESS
(a) Member Business Brokers may give an
appraisal of the business if requested by the
Client.
(b) Prior to giving an appraisal, the Member
Business Broker should obtain a signed
Request for an Appraisal of Selling Price of a
Business from the Client or otherwise provide
a statement to the Client to notify them that
the Member Business Broker’s appraisal is their
estimation of the value of the business only
and is calculated in reliance on the information
provided by the Client.
(c) Member Business Brokers must not represent
that their appraisal is a valuation of the
business unless they are a licensed valuer.
6. PROVIDING AN APPRAISAL OF
THE BUSINESS
(a) An appraisal should be calculated by the
Member Business Broker using an industry
accepted method of appraisal and taking into
consideration the following factors:
i.
ii.
value of the business assets, plant and
equipment, stock in trade, work in
progress,
goodwill,
intellectual
property, inventory;
income and expenses of the business;
iv.
if available, a valuation of the business
provided by an accountant; and
v.
current market value based on recent
sales of comparable businesses.
(b) When the Member Business Broker provides
their appraisal to the Client, they must also
provide their analysis of how they reached their
estimated sale price.
(c) If during the appointment of the Member
Business Broker, there is a change in
circumstances for the business or the Client
provides updated information to the Member
Business Broker which may reasonably impact
the accuracy of the Member Business Broker’s
appraisal, the Member Business Broker should
provide an updated appraisal to the Client as
soon as possible.
Appraisal Forms
Available in Realworks
7. SALE PRICE
Member Business Brokers must express the sale
price of a business put to market by clearly
identifying:
(a) what is included or excluded in the price, for
example if value of stock, work in progress,
business assets, goodwill, intellectual property,
plant and equipment is included or to be
valued and added to the listing price
advertised; and
(b) if GST is applicable to the sale of the business,
if the price is inclusive or exclusive of GST.
8. ADVERTISING A BUSINESS FOR SALE
Learn about becoming a
Registered Business
Valuer with AIBB
REIQ BEST PRACTICE GUIDELINES
V08.23
(a) Member Business Brokers should provide the
Client with a Marketing and Advertising Plan
along with associated costs by completing the
relevant sections of the PO Form 6.
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