What are the fees for an agency valuation?
We fix every fee in writing before any work starts. It stays the same whatever value we reach and whether or not a sale goes ahead. An agency on exactly $3 million is in the Medium band; one on exactly $10 million is in the Large band. Delivery time starts once payment and all required information have been received.
| Package | Annual revenue of what is valued | Fee | Delivery |
|---|---|---|---|
| Small Business Valuation | Under $2 million | $1,495 + GST | 2 business days |
| Medium Business Valuation | $2 million to $3 million | $2,495 + GST | 3 business days |
| Large Business Valuation | Above $3 million up to $10 million | $3,495 + GST | 3 business days |
| Above $10 million | Above $10 million | Quoted in writing before work starts | Agreed before commencement |
| Expert report (dispute or court) | Any size | $4,495 + GST | Agreed before commencement |
Which revenue figure sets the band?
The band follows what is being valued, measured as annual revenue excluding GST:
- ·A rent roll on its own: the rent roll's annual management income
- ·An insurance or mortgage book on its own: that book's annual recurring income
- ·A whole agency, or shares or units in it: the agency's total annual turnover
Hypothetical examples: which band applies?
Invented figures for illustration. A real estate agency with total turnover of $3.4 million is selling its rent roll, which earns $1.1 million a year in management income. A valuation of the rent roll alone is a Small Business Valuation at $1,495 + GST; a valuation of the whole agency, or of shares in it, is a Large Business Valuation at $3,495 + GST.
An insurance brokerage with $2.6 million of total revenue wants a book valued for a partial sale, and that book earns $800,000 a year in recurring income. The book alone is $1,495 + GST; the whole brokerage is $2,495 + GST. A recruitment agency with turnover of exactly $3 million is in the Medium band at $2,495 + GST.
What can change the fee?
These are the things that change the fee. It does not change with the value we reach, with whether a sale proceeds, or with how many owners read the report. Valuations for the 30 June 2027 CGT change use the same fees; there is no separate package price.
- ·Each retrospective (past) valuation date adds $495
- ·Each additional entity, such as a trust that owns the rent roll beside the operating company, adds $795
- ·An expert report for a dispute or court is $4,495 + GST, whatever the size of the agency
- ·Where revenue is above $10 million, we quote the fee in writing before work starts
What is included in the fee?
A written report signed by a suitably qualified business valuer. It sets out the purpose, the asset or interest valued, the valuation date, the basis of value, the information relied on, the normalisation of earnings, the method chosen with reasons and a cross-check where possible, the conclusion and a declaration of independence. These are the elements the ATO's guide to market valuation expects a report to cover, and every report follows the guidelines of APES 225 Valuation Services.
What is a cheap or free appraisal, and what is it not?
Free and low-cost figures have their place. A broker's appraisal, often offered with a proposal to handle a sale, is an informed view of what today's buyers might pay, and it is the right tool for deciding whether to list. An online calculator applies a formula to the numbers you type in. A quick figure from an adviser may apply a rule of thumb to revenue.
What these are not is a report that states its basis of value, date, method, evidence and independence. APES 225 distinguishes valuation engagements, limited scope valuation engagements and calculation engagements, so the type of work should be clear before you rely on a figure. The ATO says the taxpayer keeps the onus of having a valuation that is replicable and defensible, and that a market value is better supported where any fee did not depend on the outcome. If someone other than you must rely on the figure, a free number can become the expensive option.
What do we need from you?
To confirm the band and start work, we usually ask for:
- ·What is being valued, for what purpose and at what date
- ·Three years of financial statements and year-to-date accounts
- ·Revenue by client, or a book report reconciled to the accounts
- ·Owner pay, related-party arrangements and one-off items
- ·The ownership structure: which entities own the agency, the rent roll or the shares