As at the date of this Report the average Weighted Adjusted Net Profit of the business over the
2005, 2006 and 2007 financial years is $ 601,681.29 p.a.
There are 2 types of Buyers in relation to Business Sales & Divestments in a 100% Asset Sale.
They are either Financial Buyers or Strategic Buyers. The assumptions made as to the type of
Buyer can have a marked impact on the Actual Sales Value a business generates in the open
market.
A Financial buyer generates a return on their investment by continuing the business and/or by
generating additional gains by improving or enhancing the current business. Acquisitions by
Financial Buyers generally have:
 Low Strategic Value
 Low competitive advantage
 Many similar businesses
 Buyer will buy to consolidate or run as it is
 Offers little in synergy to buyer
A Strategic buyer leverages the acquisition to create significant gains in their own business in
combination with the new acquisition. Acquisitions by Strategic Buyers generally have:
 High Strategic Value
 Considerable competitive advantage
 Unique, hard to copy or extensive intellectual capital or IP
 Underlying assets of competencies can be leveraged by larger corporation.
Value identified and paid for a business by a Strategic Buyer is usually considerably more than
for the same business by a Financial Buyer. As the type of Buyer for Vision Software Solutions
is unknown as at the date of this report, this report assumes an Opinion of Value by a Financial
Buyer.
After discussions with yourself and your external Accountant and examination of the financial
records presented to us of the business for ABC Software Solutions Pty Ltd we are of the
opinion that a current Fair Market Value for the business would be around $ 1,600,000 +
SAV which includes all Tangible and Intangible Assets as discussed excluding the value of any
real property.
Taking into account the market conditions prevalent at this time, we estimate the range of
Values that the business will sell for between $ 1,200,000 + SAV and $ 2,000,000 + SAV.
You would be aware of and should factor into your decision making process, that the value of
any business is not necessarily the price somebody will pay for it as ultimately market forces
and supply V demand as well as a myriad of economic and social factors determine its Sale
Price.
Respectfully submitted,
Paul Nielsen
Paul A Nielsen CM&AA;CPBB;MIBA;CMEA;LREA;LSHD(Qld);MAIBB;MIBBA;MREIQ;MNEBBI;CMAPM&AA;FIIDM;MQJA; JP(Qual)
Certified Mergers & Acquisitions Advisor and Business Intermediary
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