PROPELL VALUERS PROVIDE BUSINESS VALUATIONS
Change is underway in Australia’s property industry, as commercial valuers broaden their expertise to accommodate a growing demand of business valuations sought by finance lenders.
A qualification recently introduced by the Australian Property Institute permits valuers to determine the market value of businesses, and is growing in trend as banks and lenders seek new ways to secure loans.
Richard Lysnar of Propell National Valuers is a registered commercial valuer who is also qualified as a Certified Practicing Valuer in Business. This enables him to value business premises and businesses themselves.
“There has been a substantial increase in demand for business valuations in recent years, particularly from banks,” Mr Lysnar said.
“With property markets experiencing turbulent conditions throughout Australia since the global financial crisis, many banks have needed to look beyond property to find assets they can secure borrowings against.
“Previously they have relied primarily on accountants for business valuations, but they are now increasingly looking to property valuers to gain independent business valuations,” he said.
Mr Lysnar believes that property valuers expanding their skills to include business valuations was a logical step for the industry.
“Commercial property valuers have traditionally been required to examine potential income streams from tenanted properties when they evaluate commercial or industrial properties.
“When valuing properties such as petrol stations, childcare centres or hotels which have a clear use, a business valuer must have an understanding of the potential income that could be derived by a business in that industry.
“Therefore there is an underlying skill commercial valuers can use when assessing businesses.
“Valuers can build on this knowledge and experience to provide valuations not just for real property but also for businesses regardless of the core use of the premises,” he said.
Valuers accredited by the Australian Property Institute must comply with International Valuation Standards. These standards are in keeping with the Australian Property Institute’s code of professional practice, which provides a broad set a principles applicable to both property and business valuations.
Mr Lysnar said business valuations represented an exciting opportunity for property valuers.
“Propell National Valuers expects that business valuations will be a strong area of growth over the next decade,” he said.
According to the Australian Property Institute, there are around 5,000 Australian Property Institute members who hold a Certified Practising Valuer certification and 90 specialists now hold Certified Practising Valuer (Business).
For more information on business valuations, visit the www.propellvaluers.com.au
Propell National Valuers provides property and land valuation for residential and commercial purposes across Australia. Valuers are local experts supported by national resources and infrastructure to enable the delivery of professional, timely and accurate present day and retrospective valuation services.
Propell National Valuers has offices in Victoria, Queensland, New South Wales, South Australia, Western Australia, Tasmania, Australian Capital Territory and Northern Territory.