Modification History
Not Applicable
Unit Descriptor
Unit descriptor |
This unit of competency specifies the outcomes required to conduct an appraisal of a business prior to promoting and marketing the business for sale. It requires the ability to research the business as well as current market trends and data, using established evaluation methods, advise the client of and document the appraisal. It also requires knowledge of market trends and the business broking environment, legislation relating to business ownership, evaluation methodologies and client liaison techniques. The unit may form part of the licensing requirements for persons engaged in business broking in those States and Territories where business broking is a regulated activity. |
Application of the Unit
Application of the unit |
This unit of competency supports the work of those involved in appraising a business prior to promoting and marketing the business for sale. |
Licensing/Regulatory Information
Refer to Unit Descriptor
Pre-Requisites
Prerequisite units |
Nil |
Employability Skills Information
Employability skills |
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
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1 Research the market . |
1.1 Appropriate information is identified and organised in a format suitable for analysis according to legislative and agency requirements . 1.2 Business technology is used to access and organise information according to agency requirements. |
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1.3 Market information is processed and analysed to assist in making an assessment of the listed business' marketability and viability. 1.4 Current business financial data is collected and evaluated to determine financial status according to agency requirements. 1.5 Current market value of business assets and trends for similar businesses are obtained and analysed to establish benchmarks. 1.6 Client is informed of relevant current market factors and their potential impact on the business' sale or purchase price according to agency requirements. |
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2 Appraise the business . |
2.1 Source and occupancy documents are obtained and analysed according to legislative and agency requirements. 2.2 Ownership and status of the business and relevant associated components are determined in line with statutory and agency requirements. 2.3 Profitability of the business and associated components is determined using appropriate appraisal practices according to agency requirements. 2.4 Market -related pricing structures are determined and assessed against buyer and seller expectations. 2.5 Feedback is collated and provided to personnel and agencies involved in the appraisal process. 2.6 Recommendations are made to the client regarding purchase or selling price according to agency requirements and procedures. |
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3 Complete appraisal . |
3.1 Appraised price is determined on the basis of the appraisal and negotiated with the client. 3.2 Conclusions and recommendations are prepared from source documents that provide constructive advice for future appraisals. 3.3 Records and documentation are completed according to client and agency requirements. |
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Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
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This section describes the essential skills and knowledge and their level, required for this unit. |
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Required skills :
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Required knowledge and understanding :
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Evidence Guide
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Overview of assessment |
This unit of competency could be assessed through practical demonstration of appraising a business. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment. |
Critical aspects for assessment and evidence required to demonstrate competency in this unit |
A person who demonstrates competency in this unit must be able to provide evidence of:
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Context of and specific resources for assessment |
Resource implications for assessment include:
Where applicable, physical resources should include equipment modified for people with disabilities. Access must be provided to appropriate learning and/or assessment support when required. Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed. Validity and sufficiency of evidence require that:
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In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed. |
Range Statement
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below. Add any essential operating conditions that may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts.
Appropriate information may be obtained from sources such as: |
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Legislative and agency requirements may relate to: |
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Business technology may include: |
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Market information may include: |
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Financial data may include: |
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Source and occupancy documents may relate to: |
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Associated components may include: |
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Appraisal practices may include: |
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Market -related pricing structures may relate to: |
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Feedback may include: |
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Recommendations may relate to: |
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Appraised price refers to a realistically determined buying or selling price that takes account of: |
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Conclusions and recommendations may relate to: |
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Records and documentation may include: |
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Unit Sector(s)
Unit sector |
Property development, sales and management |
Competency field
Competency field |
Business broking |