Appraisal Method - ROI Based
15 Feb 2017 10:17 AMTroy Potter
Market Based
There will be certain instances where no amount of sound theory
or application of complicated methodologies alone will suffice. It
is not uncommon that a willing buyer and a willing seller will agree
on a value that defies all traditional appraisal methodologies.
In other cases the use of traditional appraisal approaches produce
unrealistic values that have no bearing on market realities.
It is important in any appraisal to overlay relevant market data
and multiples achieved in similar businesses “in the real world”.
Unfortunately the level of information available in Australasia is
not as sophisticated as that available in other parts of the world.
LINK brokers have a substantial amount of comparable evidence
across a wide range of industries, reflecting actual prices and
multiples achieved.
For a full appreciation of the business Sales process please download our free ebook - link below.