Newsagency Business Valuations

Newsagency valuations are common because there are approximately 5,000 newsagencies in Australia. Newsagency valuations are required on many occasions by banks as they require a newsagency valuation to assist in a finance application.

Many buyers of newsagencies in Australia require a business newsagency valuation because they are business migrants. Business Migrants may need the newsagency valuation because they are without knowledge of the newsagency industry, they require the newsagency valuation to support their application for a business visa or to support the subsequent application for permanent residence. Many business migrants are purchasing the newsagency from another business migrant and it is critical they have a newsagency valuation conducted to ensure they are receiving fair market value for their investment as they cannot afford to buy a newsagency only to find it it is not all they had been led to believe by the outgoing proprietor.

A business valuer conducting a newsagency valuation needs expert knowledge in the manner in which publications and magazines are distributed, the relationships with Lotto and Tattslotto bureaucracies in each state, and also the Post Office if the newsagency also has an Australia Post franchise.

There are various benchmarks on newsagency performance that a business valuer can access, so they can quickly identify the strengths and weaknesses in the newsagency under valuation review – versus its peer group.

If you are buying a newsagency and you do not require a newsagency valuation as part of the purchase, then you are taking a considerable commercial risk in doing so.

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