Date posted: 30/11/2021

2021 Valuation practice survey

The 2021 CA ANZ Valuation Practice Survey asked Business Valuation Specialists for their views on the key trends affecting valuations. Here are insights it revealed.

In brief

  • Average fees for a valuation report are commonly between $5,000 and $20,000
  • Tax and dispute work are identified as the key business valuation practice areas
  • The majority of respondents stated their valuation reports followed International Valuation Standards.

This second CA ANZ Valuation Practice Survey, previously undertaken by KPMG, identifies the issues, challenges and trends arising in business valuations. The survey was developed in collaboration with the CA ANZ Business Valuation Committee, all of whom are CA Business Valuation Specialists.

Key findings are summarised here, with the full report available for download at the bottom of this page. 

Key input observations include that at 30 June 2021, the majority of Australian respondents adopted:

  • A risk free rate of between 1.0% and 1.9%
  • A market risk premium of between 6.0% and 6.9%
  • A cost of debt between 4.0% and 5.9%, for private companies with a turnover of less than $20 million.

With respect to business valuation practices:

  • Half of the respondents charge an average fee for a valuation report of between $5,000 and $20,000
  • Tax and dispute work are identified by respondents as the key business valuation practice areas
  • Professor Damodaran and Shannon Pratt are cited as the go to business valuation authors
  • IBISWorld and Capital IQ are the most popular research and financial data tools
  • The majority of respondents stated their valuation reports followed International Valuation Standards.
BV respondents are most commonly adopting a 1-1.9% risk-free rate for valuations, an increase on last year’s average of 0 to <-1%.

About the survey

The 2021 Valuation Practice Survey was conducted in September 2021. It includes results from 68 respondents working in valuation-related disciplines across the public and corporate sectors. The survey was conducted by Chartered Accountants Australia and New Zealand and distributed online to Business Valuation Specialists.

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