Going Concern Valuation Australia

A going concern valuation assesses a property as a fully operational business entity, encompassing the land, buildings, plant and equipment, fixtures and fittings, furniture, and the trading potential of the business as an integrated whole. This approach is essential for trade-related properties where the property value is inseparable from the business operation conducted within it.

Going concern valuations are used for hotels, motels, pubs, licensed clubs, caravan parks, resorts, service stations, childcare centres, and other specialised trading properties. Unlike a standard commercial valuation that focuses primarily on rental income and capitalisation rates, a going concern valuation analyses the financial trading history, occupancy rates, average daily rates, food and beverage revenue, gaming revenue where applicable, operating expenses, and future revenue projections to determine the total value of the operational entity.

Our RICS-regulated approach considers comparable transaction evidence from similar trade-related property sales, applies the profits method of valuation, and cross-checks against the depreciated replacement cost where appropriate. Reports produced by Landmark Valuations are accepted by banks for lending purposes, buyers and sellers for due diligence, accountants for financial reporting, and courts for dispute resolution. We value going concern properties across all Australian states and territories.