Valuing a Gold Coast Business You Are Selling or Buying

Whether you are taking a Gold Coast business to market or weighing up an acquisition, the price has to rest on evidence the other side's advisers cannot pick apart. We build that figure and stand behind it.

Indicative valuations from A$799. Certified Summary and Detailed reports from seven business days.

A Gold Coast sale or purchase valuation fixes three things: the earnings a new owner can keep once owner and related-party costs are adjusted, a multiple backed by comparable transactions, and the deal terms that shift value, such as working capital, net debt, earn-outs and scrip. Vendors use it to set a range; buyers use it to set a ceiling.

Why a Gold Coast sale should be priced before the first conversation

Private deals on the Gold Coast usually come down to the same two questions: what the business earns once the owner's personal arrangements are stripped out, and what multiple a buyer should pay for those earnings. Take a Molendinar joinery business offered to a trade competitor. The vendor's accountant adds back the owner's ute, the family wages and a one-off legal bill; the buyer's adviser accepts some of those and rejects the rest. The side with the better-documented workings usually wins the point, and the money at stake is far larger than the fee for the analysis.

Seasonality makes this harder here than in most markets. A Surfers Paradise or Broadbeach hospitality venue, a short-stay operator in Main Beach or a tour business that relies on visitors arriving through Gold Coast Airport at Bilinga can post a very different year depending on school holidays, major events and interstate travel. A buyer will ask whether the last twelve months were typical, and the vendor needs the answer ready. A Robina allied health clinic with a broad referral base and a Burleigh Heads cafe run by its owner will not command the same multiple, and the report explains why in writing.

The people who approve the deal need a record as well. Directors signing off a purchase or a sale owe a duty of care and diligence under the Corporations Act 2001, trustees answer to their beneficiaries, and minority holders may later want to know how the price was reached. A signed opinion from a certified valuer whose fee does not depend on completion is the usual way to show the duty was taken seriously, and a lender funding the purchase will normally ask for it early.

We act for vendors, buyers and boards from Coolangatta to Coomera and up into the hinterland: builders and trades working through the residential construction cycle and the 2032 Games works, boat builders and marine suppliers in the Coomera marine precinct, distributors in Yatala and Arundel, health and education businesses around the Parklands precinct, and professional firms in Southport and Bundall. Our fee does not change with the outcome of the deal, and if the evidence does not support the asking price, the report says so.

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Andrew Mackson
Andrew Mackson, CFA, ABV, CBV
Managing Partner · 15+ years
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Where the value in a Gold Coast sale is actually decided

Negotiations tend to fixate on the headline multiple. Much of the value in a private deal is in fact settled in less visible places: the earnings figure the multiple is applied to, the mechanism that fixes the price at completion, and any consideration that is deferred or paid in shares. Every engagement tests all four.

Maintainable earnings

Owner and family pay reset to the cost of filling those roles, rent to a related property trust brought to market, private spending removed, and one-off items taken out whichever way they cut. Vendors notice unusual costs quickly and unusual income slowly. Each dollar adjusted here flows straight into the price through the multiple.

A multiple you can source

Built from named Australian private deals and listed comparables, then adjusted for size, growth, customer concentration, the depth of management beneath the owner and the proportion of revenue that recurs or is contracted. A multiple based on what people say the market pays will not survive a request for its source.

The completion mechanism

Under a locked box, the price is fixed off an earlier balance sheet and trading after that date belongs to the buyer. Under completion accounts, the price is adjusted for the net debt and working capital actually present on the day. The working capital target is the figure most often neglected, and it should come from monthly balances over a full trading cycle, not one month end.

Earn-outs and scrip

A payment tied to future results is worth its discounted, probability-weighted outcome rather than the cap written into the contract, and the metric needs protecting from how the new owner runs the business. Shares in the buyer are valued as the vendor will hold them: typically a minority parcel, often escrowed, seldom easy to sell and not necessarily worth the issue price.

For a vendor, the work happens before the business is listed: a supported range, the adjustments behind it and the ones a buyer will probably dispute, each answered in advance. For a buyer, the valuation runs alongside financial due diligence but answers a different question. Diligence confirms what the historic figures were; the valuation asks what they are worth and whether the earnings will hold once the vendor leaves.

If a director sits on both sides

A management buy-out, an asset transfer between related companies or buying out a founder who is also a director may prompt the board to seek an independent view of whether the terms are fair to the company. That opinion is different from the expert report the Corporations Act 2001 requires for takeovers, schemes of arrangement and certain member approvals, which is licensed work. Have your lawyers settle the statutory position before commissioning either.

How we value a business that is being sold or bought

In a private sale the standard of value is market value: the price at which a willing buyer and a willing seller, both informed, neither under pressure and dealing at arm's length, would transact. Extra value that only one buyer could capture by folding the business into its own, for example a Helensvale plumbing group taking over a competitor's maintenance contracts and vans, is strategic value. We show it separately so the vendor knows what is realistically on the table and the buyer knows how much of its own upside it would be paying away.

The income approach is normally the lead method. For an established business, capitalising maintainable earnings reflects the way buyers reason: an earnings base after adjustments and a multiple or capitalisation rate that prices the risk of those earnings continuing under new ownership. When earnings are moving quickly, the business needs heavy capital spending or there is a clear forecast period, such as a Coomera boat builder with a contracted build schedule, a discounted cash flow fits better. Vendor forecasts are tested against history, capacity and the capital required before we place weight on them.

The market approach checks the result, and for businesses that change hands often on the Gold Coast, such as cafes, hair and beauty salons, pharmacies and physiotherapy practices, it can provide the primary evidence. Australian transaction data carries the most weight and is the hardest to find, since private deal terms are seldom published and quoted multiples often omit the earn-out and the working capital adjustment. The asset approach sets the floor, and it comes forward where the company holds surplus assets, like the freehold of a factory unit in the Burleigh industrial estate, or runs divisions that would fetch more sold separately.

Adjustments made before a multiple is applied

Common ways a Gold Coast sale or purchase goes off track

We see these patterns most often when a deal reaches us after a price is already out, heads of agreement are signed or the diligence has finished.

Report Types and Pricing: Valuations From A$799

The depth of report depends on who will read it and how closely they will check it. An owner deciding whether to answer an unexpected approach, or a buyer screening a target before spending on diligence, needs a sound range for internal use. When the figure will be shown to the other side, a bank, a board or a trustee, one of the certified reports is the right fit.

Indicative Valuation
From A$799
Choose this if you want a reasoned range before responding to an offer, before deciding to list the business, or before a first meeting where you need to know your walk-away figure. Intended for internal decision-making; it is not a certified opinion for lenders, courts or the ATO.
Delivery: from seven business days after receipt of all information
Up to 50 pages
Internal audience
Can be used in litigation
Capital structure: common equity, bank/shareholder loans
Compliant with ATO market value guidance
APES 225 Valuation Engagement
Certified and signed by an experienced practitioner
Completed and reviewed by well trained staff
Considers and applies, when relevant, all 3 valuation approaches (income, market, asset)
Applies multiple cost of capital estimates (limited to 3)
Executive summary
Statement of limiting conditions
Valuation exhibits
Glossary
Table of contents
Company review
Industry review
Economic review
Discussion of valuation approaches and types of discounts
Discussion of the application of valuation approaches and discounts
Conclusion
Email support
Closing Zoom Call
Detailed Valuation
Contact for Pricing
Choose this if the deal involves related parties, minority holders or a trustee, or the price could be argued in court and an opposing expert must be able to retrace every step. Certified and signed. Applies and reconciles all relevant approaches in full so another expert can follow the reasoning.
Delivery: from seven business days after receipt of all information
150+ pages
Internal and external audience, including for litigation or when likely to be reviewed by others
Can be used in litigation by a broad range of professionals
Capital structure: common equity, bank/shareholder loans
Compliant with ATO market value guidance
APES 225 Valuation Engagement
Certified and signed by an experienced practitioner
Completed and reviewed by well trained staff
Considers and applies, when relevant, all 3 valuation approaches (income, market, asset)
Applies multiple cost of capital estimates (full set of 12)
Executive summary
Statement of limiting conditions
Valuation exhibits
Glossary
Table of contents
Company review (full)
Industry review (full)
Economic review (full)
Discussion of valuation approaches and types of discounts (full)
Discussion of the application of valuation approaches and discounts (full)
Conclusion
Email support
Closing Zoom Call

See the full Services and Pricing page

What you receive and who will defend it

Every report opens with why the valuation was prepared, the standard and premise of value, the valuation date and the material relied on. Each normalisation adjustment appears on its own line with its reason. Multiples and discount rates are tied to named sources, each relevant approach is worked through, and the results are brought together into a range with the weighting explained plainly. Where a locked box, an earn-out or scrip changes what the vendor really receives, each piece is valued on its own so the full bargain is visible and not just the headline.

The report is signed by a certified valuer who will walk your advisers through it, prepare you for the negotiation and defend the conclusion when the other side's adviser pushes back. Should a completion accounts or warranty dispute later reach the Supreme Court of Queensland, or the District Court of Queensland sitting at the Southport courthouse, the same reasoning has to work as expert evidence, so it is written to that standard from day one. The valuation supports the transaction without running it: your broker or corporate adviser leads the sale, and we work with them, your lawyer and your tax adviser.

Ask this before you sign heads of agreement

Which single assumption in this valuation would the other side attack first, and how do we answer it? If your adviser has no reply, you are holding a number, not a negotiating position.

What Gold Coast owners and acquirers ask us before a transaction

We start with the earnings a buyer could expect to keep, adjusted for owner wages, related-party rent and one-off items, and capitalise them at a multiple drawn from comparable sales. That result is then tested against other market evidence and the net assets. The multiple moves with size, growth, customer concentration, reliance on the owner and the share of revenue that recurs, so a Varsity Lakes software business on annual contracts will sit well apart from a Nerang civil works subcontractor pricing each job. The report shows the evidence for the earnings and for the multiple instead of simply asserting them.
Yes, and before any figure reaches your staff or competitors. An early number is hard to lift later, and one that falls over in due diligence weakens every point you make afterwards. A pre-sale valuation gives you a supported range, anticipates the adjustments the buyer's adviser will push for, and shows what can still be fixed before the business is listed, such as heavy reliance on one customer or a Broadbeach shop lease under the Retail Shop Leases Act 1994 (Qld) with little term left. Allow for delivery from seven business days after we receive the financial statements, tax returns, management accounts and main contracts.
Due diligence confirms the numbers; a valuation tells you what they are worth to you. An accounting team can verify the vendor's EBITDA to the dollar and still never ask whether the multiple is justified, or whether the earnings depend on the owner's own relationships and will drift away after settlement. The valuation is the piece that gives you a ceiling: the point at which the sensible decision is to walk away.
We look at full trading cycles, usually more than one, rather than whichever months suit one side. Tourism, short-stay accommodation and hospitality around Surfers Paradise, Broadbeach and Coolangatta move with school holidays, major events and interstate travel, and the working capital they carry swings with them. Maintainable earnings are set across those cycles, and a one-off spike from a particular event is separated from trade that recurs. The working capital target is then built from monthly balances, so neither the peak nor the trough is locked into the completion price, and net debt items such as customer deposits and accrued leave are defined line by line at the same time.
The expected payment, weighted for the likelihood of each outcome and discounted for time and risk, not the ceiling in the agreement. That number usually sits well under the cap and well over what a cautious buyer would concede. The terms matter as much as the amount: which metric is used, over what period, under which accounting policies, and what prevents the new owner from running the business in a way that suppresses the result. Because the buyer has to record contingent consideration at fair value under AASB 3, the same analysis also serves its financial statements.
A broker's figure is a listing estimate, and brokers are usually paid on success, so it is not independent evidence for a board, a bank, a trustee or the buyer. Treat it as useful market colour. Directors meeting their duties, a lender funding the purchase and anyone facing a challenge from the other side's adviser need a written opinion from a certified valuer who is paid the same whether or not the sale goes through.
It can, depending on the structure and the assets involved. The Queensland Revenue Office assesses duty under the Duties Act 2001 (Qld). An asset sale may attract transfer duty on land and on other dutiable property that passes with the business, and a sale of shares or trust units may attract landholder duty if the entity holds Queensland land above the level set in the Act. Because duty is generally charged on the higher of the consideration and the unencumbered value, the contract price does not settle the question, so the valuation should allocate value between land, plant, goodwill and the other assets. Your conveyancer or tax adviser confirms the duty outcome; we provide the market value evidence they work from.
Indicative valuations start from A$799 and are intended for internal decision-making, so they suit an owner who wants a well-reasoned range before committing to anything. Summary and Detailed reports are certified and are quoted after a free consultation, because the fee depends on the purpose, the number of entities, the state of the records and whether the opinion must withstand review by a court, the ATO or another expert. The fee is confirmed in the engagement letter before work starts, and every report is delivered from seven business days after we receive the information.

Book a Free Consultation

Talk your situation through with a certified valuer before you commit to anything, at no cost.

Andrew Mackson
Andrew Mackson, CFA, ABV, CBV
Managing Partner · 15+ years
Book a Free Consultation →

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