Investment broker valuations

At Lotus Amity we provide investment broker valuations. We prepare these reports in disputes and transactions and for tax purposes.

Like professional practices, investment brokers often have little or no productive tangible asset base. What they do often have however is a book of business. This intangible asset can be potentially valued in its own right and this can be a key area of dispute, see Nettler and Nettler (2007).

Another potentially contentious component of value is the market salary for the owner operator; see court cases Corbon & Klousner (2015) and Scott & Scott (2006).

Key investment broker valuation components include the number of clients, average fee per client, the average client period, client demographics, service manager details, salaries and commissions paid to staff and location and terms of the leased premises.

Examples of investment broker valuation engagements include the valuation of an investment broking businesses for bank finance

Why choose Lotus Amity for valuations?

Granular and comprehensive approach. We provide a granular and comprehensive approach to valuation. This includes modelling cash flows and discount rates and providing fully referenced appendices.

Detailed analysis. Each valuation has a story. We carefully research, analyse and explain each valuation story and how the numbers (the cash flows and discount rate) relate to that story.

Compliance. Our reports comply with the Australian accounting, ethical and valuation standards, the International Valuation Standards and the relevant expert witness requirements.

Quality Control. Each valuation report and model is reviewed for accuracy, completeness and transparency by an external firm of Chartered Accountants and business valuation specialists.