EXECUTIVE SUMMARY
PAGE TWO
INSTRUCTIONS VALUATION SUMMARY and VALUER SIGN-OFF
Armstrong Business Valuations Pty Ltd has received instructions from Mr. Son Bui (Interest Party) on behalf
of (To be Assigned) to value the following pharmacy business: Subject to the terms and conditions of this valuation report Armstrong Business Valuations Pty Ltd are
of the opinion that as at the following Valuation Date:
3 APRIL 2019
JOHN MITCHELL PHARMACY
the Market Value of the pharmacy business is most closely represented by the higher of the two values
below, indicated in red and underlined, resulting from the capitalisation of earning and asset valuation
methods as follows:
as conducted at:
22 Marshall Street, Cobar, NSW 2835
Being a Retail pharmacy located in a town centre strip type shopping area, having the following PBS
Approval Number:
Not Provided
- –
It is an important valuation assumption that the business is appropriately
licensed and holds a current PBS Approval Number. It is recommended evidence from Medicare
Australia of the PBS Approval Number be sighted prior to any lending approval.
Based on the capitalisation of earnings valuation method using a 17.0% to 19.0% capitalisation
rate range resulting in the following values:
$2,111,560 to $2,359,979
and that the high-point 19.0% capitalisation rate referenced against this value range reflects the
Market Value for the purposes of this report see pages 11, 12-13 and 14:
$2,111,560 (exclusive of GST)
made up of the following components:
BASIS OF VALUATION
The requested valuation has been prepared in accordance with the instructions received as a Limited
Scope Valuation Engagement, in accordance with APES 225 “Valuation Services”.
Goodwill:
Stock:
Plant, Equipment, Fixtures and Fittings:
$1,804,381
$ 207,179
$ 100,000
Based on the asset method, the estimated Market Value is assessed at:
The basis of valuation is to be the estimated Market Value of the pharmacy business as at the Valuation
Date based on the information provided by the pharmacy business and/or its accountant without
verification, audit or due diligence by Armstrong Business Valuations Pty Ltd as to the accuracy or
completeness of such information and you are referred to the Business Valuation Method section below.
With the introduction of new regulations relating to the relocation of PBS Licenses the marketability of
licenses as separable assets is not likely and we have treated the License as having no commercial value
for security lending purposes.
$ 307,179
made up of the following components:
Market Value of Pharmacy License:
Stock:
Plant, Equipment, Fixtures and Fittings:
$
Nil
$ 207,179
$ 100,000
VALUER SIGN-OFF
Armstrong Business Valuations Pty Ltd confirm its independence in that it does not act as accountants
or tax agents for the owner of the business being valued. This valuation report has been prepared,
subject to the terms and conditions set out in this report, by Armstrong Business Valuations Pty Ltd
and represent the valuer’s opinion as at the Valuation Date.
We have not sighted confirmation from Medicare Australia of the PBS Approval Number.
A site inspection of the pharmacy business was not undertaken.
PURPOSE OF VALUATION
This valuation has been prepared for the purpose of supporting an application for finance and this report
may be used by:
(TO BE ASSIGNED)
Alister Willcox - BEc CA MBus
Director
Scott Peters - BEc CA FFins GAICD
Director
for Security Lending Purposes
3 April 2019
Armstrong Business Valuations Pty Ltd
Page 2 of 56
Ref: 190407
M: 0408 848 090
E: [email protected]