9. Business Location Continuity Assessment.
10. Operational Facility and Equipment Analysis and Assessment.
11. Business Purchase Finance Assessment.
12. Industry Strength Assessment.
13. Environmental Risk Assessment.
14. Social Desirability Assessment.
15. Alternate Investment Return Assessment.
16. Internet & Technology uptake Assessment.
17. Business Plan/Standard Procedure Manuals Assessment.

On completion an “earnings multiple” can be calculated by averaging the degree of
inherent risk and a “Capitalisation Rate” calculated.
Based on the above criteria the CAPITALISATION RATE was calculated to be:
22.1 % with an earnings multiplier of 4.5
Prior to forming an Opinion of Value of any business the above factors must be
tempered with the ‘reality’ of ROI percentages achieved in Actual Sales to reflect the
state of the market at the time of preparation of this report. Adjustments may be
required to the Goodwill componant of any price to reflect this market ‘reality’.
Additional Considerations:
Title of Appraised Business (inc Tangible Assets)
It is understood that the business and/or any tangible assets included as part of this
report belong to the Directors of ABC Software Pty Ltd. The writer makes no
guarantee, however, concerning ownership or clear title.
Market Conditions
As of the effective date of this report, business confidence in Australia and
particularly in SE Queensland is strong with the Federal Government and Reserve
Bank effectively controlling both Interest Rates and Inflation by use of Fiscal Policy.
©AVANTIA 2007
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