Guides to valuing an agency.
How rent rolls, real estate agencies, insurance brokerages, mortgage books and other agencies are valued, what moves the value up or down, and what to prepare before a sale, a purchase or a partner change.
How much does an agency valuation cost?
An agency valuation costs $1,495 + GST where the annual revenue of what is valued is under $2 million. From $2 million to $3 million the fee is $2,495 + GST, and above $3 million up to $10 million it is $3,495 + GST. Over $10 million, we quote the fee in writing before work starts. An expert report for a dispute or court is $4,495 + GST. The band follows what is valued: a rent roll's management income, a book's recurring income, or the whole agency's turnover. We fix every fee in writing before any work starts.
Which valuation methods are used for agencies?
Most operating agencies are valued by capitalising maintainable earnings, because buyers pay for profit that will continue. A multiple of recurring revenue suits books of recurring income such as rent rolls and insurance books, discounted cash flow suits income that runs down over time such as mortgage trail, and net assets set a floor. A valuer uses more than one method because each tests the others, and the ATO recommends a secondary or cross-check method where possible. A fixed-fee valuation starts from $1,495 + GST for revenue under $2 million.
Broker appraisal or independent valuation: which does your agency need?
A broker's sales appraisal and an independent valuation answer different questions. An appraisal from a business or rent roll broker is an informed view of what a sale campaign could achieve with the buyers active now, and it is the right tool when you are deciding whether, when and how to sell. An independent valuation states what a named asset is worth on a stated basis at a stated date, with its method and evidence set out so a co-owner, buyer, lender or the ATO can test it. Fixed fees start at $1,495 + GST for revenue under $2 million.
Buying into an agency: how an equity stake for a partner or key staff is valued
Buying into an agency means acquiring a share of it, usually shares or units, as a new equity partner or as a staff member offered a stake. The price starts from the value of the whole agency, then reflects what the stake carries: its percentage, voting and dividend rights, restrictions on sale and the terms of the shareholders agreement. A minority stake is not automatically a straight fraction of the whole. Where an employee acquires shares below market value, tax rules can apply to the discount. Fixed fees start at $1,495 + GST for agency turnover under $2 million.
Client concentration: how relying on a few clients affects agency value
Client concentration lowers an agency's value when a large share of its revenue comes from a few clients, landlords or referral sources, because losing one of them after a sale would take a block of income with it. A valuer measures concentration from revenue by client, then looks at contract terms, tenure, change-of-control clauses and who holds each relationship, and reflects the risk in maintainable earnings or the capitalisation rate, with reasons. There is no standard discount. Fixed fees start at $1,495 + GST where the revenue of what is valued is under $2 million.
Earn-outs in agency sales: what a deferred price is really worth
An earn-out is the portion of an agency's sale price that is paid after settlement and depends on the business reaching agreed targets, such as retained revenue, gross profit or client retention. It is not worth its face value: what it is worth depends on how likely the targets are, who controls the agency while they are measured, how long you wait and how the payout is calculated. A valuation can risk-weight the deferred part so you can compare offers like for like. Fixed fees start at $1,495 + GST where the revenue of what is valued is under $2 million.
How are insurance brokerages valued?
An insurance brokerage is valued on the recurring brokerage income its client book will keep earning at renewal, after the cost of servicing it. That income is insurer remuneration plus broker fees, measured excluding GST and separated from one-off items such as profit share. The valuer then weighs renewal history, client and insurer concentration, the licence structure and what actually transfers to a buyer, and tests the result against earnings. A fixed-fee valuation is $1,495 + GST where the book's annual recurring income is under $2 million.
How are marketing agencies valued?
A marketing agency is valued on the maintainable earnings it can keep producing for a new owner, measured on agency revenue rather than gross billings. Retained, recurring client work, a spread of clients, a team that does not hinge on one or two people and clear ownership of the work all support value. Project-based income, a dominant client and founder-held relationships reduce it. The valuer normalises earnings, capitalises them and tests the result against other evidence. A fixed-fee valuation is $1,495 + GST for an agency with total annual turnover under $2 million.
How are mortgage broking books valued?
A mortgage broking book is valued on the trail income its settled loans will keep paying, which shrinks as borrowers refinance, sell or repay. The valuer projects net trail from the book's own statements at the run-off those statements show, deducts aggregator fees and the cost of servicing clients, allows for clawback on recently settled loans and discounts the result to the valuation date. Upfront income is valued separately, with the business that earns it. A fixed-fee valuation is $1,495 + GST where the book's annual recurring income is under $2 million.
How are real estate agencies valued?
A real estate agency is usually valued in parts: the rent roll on its recurring management income, and the sales business on normalised, maintainable earnings that allow for how much of it depends on particular agents. The parts are added, checked against the earnings of the agency as a whole and, for a share sale, bridged to equity by adding surplus cash and deducting debt and other liabilities. Trust money is never included. A fixed-fee valuation is $1,495 + GST for an agency with total annual turnover under $2 million.
How are recruitment agencies valued?
A recruitment agency is valued on the maintainable earnings from two different income streams: permanent placement fees, which depend on consultants winning and filling new roles, and contractor margin, the gap between what clients pay for contractors and what those contractors cost, which recurs while placements run. The valuer measures each separately, normalises earnings, and weighs consultant dependence, client spread, working capital and, for labour hire, licensing. A fixed-fee valuation is $1,495 + GST for an agency with total annual turnover under $2 million.
How are rent rolls valued in Australia?
A rent roll is valued on the recurring management income its managements will keep earning after the valuation date, not on a rule-of-thumb multiple. The valuer rebuilds that income from the trust accounting records, removes managements already leaving and one-off fees, deducts what it costs to service the roll, then tests dated, comparable sales evidence against an income-based cross-check. Trust money is never part of the value. A fixed-fee rent roll valuation starts from $1,495 + GST where the roll's annual management income is under $2 million.
How are travel agencies valued?
A travel agency is valued on the maintainable earnings from its own income: booking income, service fees and supplier income, not the total value of travel it sells. The valuer tests how much supplier and override income depends on volume targets or network membership, how settled the corporate accounts are and which trading years are representative, and separates client money held for future travel from the agency's own cash. A fixed-fee valuation is $1,495 + GST for an agency with total annual turnover under $2 million.
Key person risk in agencies: how dependence on one person affects value
Key person risk lowers an agency's value when its income depends on one person, usually the principal or a top producer, who holds the client relationships and could leave or step back after a sale. A buyer pays for income that continues, so a valuer tests how much revenue that person controls, whether clients deal with anyone else, and what contracts keep key people in place. The adjustment is reasoned from evidence, not a standard percentage, and much of the risk can be reduced with planned handover work. Fixed fees start at $1,495 + GST for revenue under $2 million.
Normalising agency earnings: owner salary, related-party rent, one-offs and staff costs
Normalising agency earnings means adjusting reported profit so it shows what the agency would earn for a new owner: each working owner costed at a market salary for their role, rent at market rates where a related party owns the premises, one-off income and costs removed, and staff costs at the level the agency needs to keep running. Each add-back needs evidence a buyer or the ATO can check. The normalised figure, not the profit in the tax return, is what an earnings-based valuation uses. Fixed fees start at $1,495 + GST for revenue under $2 million.
Preparing an agency for sale: a 12 to 24 month checklist
Preparing an agency for sale means spending 12 to 24 months putting in order the evidence a buyer will test: financial statements with every add-back documented, client and book records that tie to the accounts, signed client and management agreements, relationships spread beyond the principal, key staff on clear terms, and tax questions raised early with your adviser, including timing around 30 June 2027. A baseline valuation at the start shows what a buyer is likely to find while there is still time to act. Fixed fees start at $1,495 + GST for revenue under $2 million.
How do rent roll retention clauses work?
A rent roll retention clause ties part of the sale price to managements staying for a set period after settlement. The contract usually holds back an amount and reduces it for managements lost in that window, so the seller carries some of the risk that landlords leave after a change of owner. The terms are negotiated in each deal and read by the parties' lawyers. A valuer measures attrition from the roll's own records and counts it once. A fixed-fee rent roll valuation starts from $1,495 + GST for management income under $2 million.
Selling an agency: a tax checklist for owners
Selling an agency is usually a CGT event for whoever owns what is sold, so settle these questions with your tax adviser before you sign: what exactly is being sold, when the CGT event happens, whether the small business CGT concessions in Division 152 may apply, how the price is allocated, whether GST applies, how any earn-out is treated, and how the 1 July 2027 CGT change affects timing. This is general information, not tax advice. Where a market value is required, our fixed fees start at $1,495 + GST.
What drives the value of a rent roll?
Rent roll value comes down to three things: how much recurring management income the roll earns, how long that income is likely to last, and what it costs to service. Every driver, from fee rates and landlord concentration to arrears, geography and staff, works through one of those, and the quality of the records decides how far each can be relied on. A fixed-fee valuation that weighs these drivers for your roll starts from $1,495 + GST where its annual management income is under $2 million.
Why rule-of-thumb multiples mislead agency owners and buyers
A rule-of-thumb multiple misleads because it applies one ratio to one figure, usually revenue or a book's annual income, without testing what sits underneath it: how much of the income recurs, what the principal is really paid, who holds the client relationships and what the deal terms were. Two agencies with the same revenue can be worth very different amounts. A rule of thumb can start a conversation, but it is not a value. An independent valuation tests the earnings and risks behind the figure, for a fixed fee from $1,495 + GST where the revenue of what is valued is under $2 million.
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Small Business Valuation
$1,495 + GST
For an agency, rent roll or book with annual revenue of what is valued under $2 million. A written report, delivered in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the value we reach.
Larger agency or book? Tell us in the form and we recommend the right package. All fees