ARMSTRONG BUSINESS VALUATIONS PTY LTD
Valuations using selected capitalisation rates
Capitalisation Total Business
Rate
Value
Assessed EBITDA
Stock as at
Plant, Fixt's &
Fittings Goodwill
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000 2,200,299
2,124,315
2,052,800
1,985,372
1,921,690
1,861,451
1,804,381
1,750,239
1,698,803
31-Dec-18
401,196
16.00%
16.50%
17.00%
17.50%
18.00%
18.50%
19.00%
19.50%
20.00%
2,507,478
2,431,494
2,359,979
2,292,551
2,228,869
2,168,629
2,111,560
2,057,418
2,005,982
207,179
207,179
207,179
207,179
207,179
207,179
207,179
207,179
207,179
Notional Estimate -
See Page 5
ASSESSED CAPITALISATION RATE
Pharmacy Location:
Regional NSW
Core Capitalisation Rate Range Based on Comparable Transactions:
Higher Value
LOW
17.00%
MID-POINT
18.00%
RISK IMPACT
Risk Factors Within the Core Capitalisation Rate Range:
Higher Risk Lower Value
Neutral Risk
Lower Risk Higher Value
Factor
Sales Growth at or above CPI - Reasonably consistent sales
Consistency of Gross Profit Margin - Somewhat inconsistent. See page 3
Consistency of Adjusted EBITDA - Variable with Gross Margin
Risk of Tenure - Estimated 2.5% of revenue from Nursing Homes. See page 5
Location of Pharmacy - Main street retail strip in remote town
Size - Normal demand for pharmacies of this size (value)
Competition - Average
Branding - Independent
Merchandising - Fit for purpose
Lease Tenure - Not provided. See page 5
Parking and/or Access - Good
Longevity of Establishment - Owned over 10 years
Assessed Capitalisation Rate for this Pharmacy:
(c) Armstrong Business Valuations Pty Ltd
Page 14 of 56
0.00%
0.00%
0.00%
0.00%
1.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
19.00%
Lower Value
HIGH
19.00%
Note 2