Recent interest rate rises have begun to slow the economy and many analysts
predict a tightening in the provision of Credit by financiers as a result of the Sub
Prime issue in the US and the possibility of the US economy slipping into recession.
Pressure on wages bought about by historically low unemployment and strong
demand have not appeared to unduly effect the economy yet analysts are predicting
this could change in the short to medium term. After the introduction of GST in
Australia many businesses suffered a temporary downturn affecting profits but most
have recovered and profitability for all industry sectors is rated as “healthy”. The type
of appraised business which is the subject of this report is typically found in the
marketplace with normal supply vs. demand effects prevailing, however, external
macro economic factors such as Government cutbacks or a sudden rise in fuel and
other essential commodity items can have an effect across all industry sectors in the
short to medium term which can effect business profits and confidence which can
have a ripple effect on business values.
Estimated Marketing Time
Consistent with the effective date of this report the Appraiser believes that if the
Business that is the subject of this report were to be placed on the open market, all
factors being equal, the business could sell within 9 – 12 months.
Extraordinary Assumptions and/or Hypothetical Conditions
1. It is assumed there are no hidden issues or fraudulent misrepresentations that
are not discernible from an examination of the presented financials of the
business or not disclosed to the Appraiser at interview.
2. If any information from any source comes forward indicating that a change in
estimated value for the Business or Tangible Assets that form the basis of this
report is warranted, the Appraiser reserves the right to change the value opinion
of this report.
3. Issues resulting from either of the above conditions could affect the assignment
results.
©AVANTIA 2007
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