Frequently Asked Questions

1. Why do I need an independent valuation?

Most business "appraisals" are provided by brokers who have a vested interest in the sale price or getting a listing. businessvaluations.co.nz provides a "Pure-Play" service. We are 100% independent, meaning our only goal is to provide a defensible, objective number that reflects the true market value of your business—unbiased by sales commissions.

2. How is this different from a "Bank-Ready" valuation?

"Bank-Ready" valuations are specialized documents specifically formatted for Tier 1 lending institutions and often cost upwards of $5,000. Our reports are designed for internal business decisions: shareholder buyouts, succession planning, partnership disputes, or pre-exit strategy. While we use high-level technical rigor and IVS 2025 standards, our focus is on providing clarity to owners and their advisors, not satisfying bank credit departments.

3. Why do you use three years of financial data?

In the 2026 New Zealand market, a single year is rarely enough to show a business's true "Maintainable Earnings." By analyzing a three-year trend, we can identify (and "normalize") one-off events, such as storm damage, COVID-lingering effects, or sudden supply chain spikes, to find the sustainable profit levels a buyer would actually pay for.

4. What is the $145,000 "Owner Salary" adjustment?

To find the true "Goodwill" value of a business, we must calculate the profit after the cost of a manager is paid. In 2026, the market benchmark for a General Manager in a New Zealand SME is $145,000. If you are currently paying yourself less (or more), we adjust the profit to this market rate to show what the business earns as a standalone investment.

5. How long does the process take?

Once we receive your completed data intake (P&L statements and risk questionnaire), we deliver your 10-page independent report within 7 business days. Our streamlined 4-Module Engine allows us to provide high-speed analysis without sacrificing professional depth.

6. Do you handle the sale of the business?

No. We do not act as brokers or sales agents. We are independent analysts. Our involvement ends with the delivery of the report. This ensures that the value we provide is completely objective and free from the "success fee" conflict of interest.

7. What is the cost and when do I pay?

We offer a fixed-fee service of $1,950 + GST for standard New Zealand SMEs. To maintain absolute independence as a Business Valuation Specialist, our fixed fee of $1,850 + GST is payable upon engagement. This ensures our findings remain objective, clinical, and compliant with IVS 2025 standards, providing you with a truly defensible document for your 2026 strategy." For complex group structures or businesses with turnover exceeding $5M, we provide custom quotes.

8. What are IVS 2025 Standards?

The International Valuation Standards (IVS) 2025 are the globally recognized framework for valuation professionals, issued by the International Valuation Standards Council (IVSC). These standards ensure that business valuations are conducted with high levels of consistency, transparency, and technical rigor

Adhering to IVS 2025 means our reports are:

• Methodologically Sound: Based on internationally accepted principles rather than subjective estimates.

• Clinically Objective: Prepared under strict requirements for independence and ethical conduct.

• Market-Accurate: Incorporating real-world economic context, such as current interest rates and sector-specific risk premiums.

9. Is my data secure and confidential?

Absolutely. We understand that business financials are highly sensitive. All data is processed in a secure environment and is never shared with third parties. As independent valuers, we are bound by strict professional confidentiality standards. As part of the engagement process, we provide you with a Non-Disclosure Agreement.

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