Business Valuations in Sydney
Independent valuations for trade and field-service businesses in Sydney, delivered remotely with no offices and the same fixed fees as everywhere else.
Valuing trade businesses in Sydney
Green Standard values Sydney businesses entirely remotely, using online intake, a secure client portal and phone and video calls, at the same fees as everywhere in Australia. Sydney trade businesses have some features that are specific to the city, and those are the ones a valuation has to get right.
Dense apartment living makes strata one of the largest sources of maintenance work in Sydney. Plumbers, electricians, fire services, cleaners and facilities maintenance firms that hold strata manager panel positions and long-running building contracts have recurring revenue that a construction subcontractor does not. We look at how long the accounts have been held, how many managers they come through, and whether any one manager or building accounts for a large share.
Defect and rectification exposure on apartment and townhouse work has been a particular issue in Sydney. For builders and trades working on new residential buildings, we ask about warranty claims, retentions held by head contractors and any history of rectification, because they can reduce what a buyer will pay for the earnings.
Sydney is expensive to operate in. Industrial land is scarce and costly, so many trade businesses work from a yard or workshop owned by the owner’s family trust or superannuation fund, and the rent paid is often not a market rent. A valuation restates it, and also considers the risk of losing a low-cost premises on a sale. Congestion and long cross-city drives make travel time a large unbilled cost, so service area and depot location affect profitability.
Growth in western Sydney, including new housing precincts and the infrastructure around the new airport, supports civil, earthworks, concreting and electrical contractors, with the usual exposure to the project pipeline. Summer storms and heatwaves bring spikes of repair, roofing and air-conditioning work that should be separated from maintainable revenue. For regional New South Wales and the licensing frame, see business valuations in New South Wales.
What transfers, and what does not
Trade licences are issued by each state and territory. Whether a licence can pass to a buyer affects how much of the business transfers with a sale.
Sole licence holders
Where the owner is the only person holding the licence for the work, a Sydney business has a single point of dependency that a buyer will price in. A replacement licence holder is a significant cost, so we ask who else holds licences and how long they have been with the business.
Warranty obligations on residential work
Residential building work in New South Wales carries statutory warranty obligations under home building law, so a builder or trade working directly for owners or on residential projects has a liability that continues after the job is finished. We ask about open claims and claims history and consider whether an allowance is needed.
Industries with particular weight in Sydney
Valuations in Sydney
Do you need to visit our premises in Sydney?
Not normally. Documents are uploaded through the secure client portal and interviews are held by phone or video. A site visit can be arranged where an engagement needs one, and it is priced in writing before it goes ahead.
Our yard is owned by the family trust and the rent is below market. Does that matter?
Yes. If the business pays less than market rent to a related party, its profit is overstated from a buyer’s point of view. We restate the rent to a market level for the valuation, and we note whether a buyer would be able to keep the premises on those terms.
We have retentions held and a defect claim on an apartment job. How does that affect the valuation?
Both are taken into account. Retentions held by a head contractor count as an asset only if they will be released, and an open defect claim may need an allowance. We ask for the retention schedule and the correspondence, and the report explains how each has been treated.
Start with a short intake. We confirm the fee and scope in writing.
An Independent Business Valuation is $1,995 + GST, with a draft before the report is finalised. Typical turnaround is 3 to 7 business days once all required information has been received.