Overview of assessment

This unit of competency could be assessed through a practical demonstration of listing a business for sale with a business brokerage. 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:

analysing business and associated plant and equipment ownership and status, as they relate to listing a business with a brokerage office

clarifying concerns and communicating with clients to enable the listing process and to resolve complications

documenting agreements and distributing relevant information to clients and relevant internal and external parties

knowledge of agency practice, ethical standards and legislative requirements related to listing a business for sale

preparing and structuring advice on the listing process for businesses.

Context of and specific resources for assessment

Resource implications for assessment include:

access to suitable resources and simulated or real opportunities to demonstrate competence

assessment instruments that may include personal planner and assessment record book

access to a registered provider of assessment services.

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:

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence

all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence

where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

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.

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills:

access a variety of information relating to listing a business and relevant information regarding legislative requirements

identify current market trends and positions and determine best listing options

liaise with clients

provide information on recommended methods for listing

relate to people from a range of social, cultural and ethnic backgrounds and of varying physical and mental abilities

resolve client concerns and issues

select and use appropriate technology.

Required knowledge and understanding:

agency's business structure

mechanisms to obtain and analyse client comments and feedback

organisation's policy and procedures for client service, including ethical behaviour and listing procedures

principles and techniques for checking and validating ownership and status of a business, associated plant and equipment, and financial statements; and communicating concerns to clients

relevant federal and state or territory legislation and local government regulations related to:

anti-discrimination

business broking

business operation and listings, especially in regard to franchises and business structures and the sale and listing of businesses

consumer protection

environmental issues

equal employment opportunity

industrial relations

OHS

service standards and best practice models

strategies for planning and monitoring business listing activities

types of listings available and benefits and limitations of each for a variety of business types.

Agency and legislative requirements may relate to:

access and equity policy, principles and practice

business and performance plans, including organisational goals and objectives

client service policies

confidentiality and privacy concerns

goals, objectives, plans, systems and processes

industry and agency codes of conduct and practice and code of ethics

legislative and statutory requirements for provision of business brokerage services

mission statements and strategic plans

OHS policies, procedures and programs

policies and procedures relating to own role, responsibility and delegation

policy documents on pricing and fee structures

quality assurance and procedures manual, including continuous improvement processes and standards and sales and client liaison procedures

records and information systems

reporting and communication structures

terms and conditions of employment.

Questions or concerns may arise regarding:

business broking opportunities and potential difficulties

fees and fee structures

possible price

the agency and its reputation

the business appraisal and marketing process

the listing process

the sales and market climate

type and term of agency agreement.

Client instructions may relate to:

agency processes that may affect client

frequency and contact details for provision of information in relation to listing and sale

how they would like the business listed and marketed

selling price expectations.

Client profile may relate to:

availability of finance

commitments to suppliers, staff, and clients or customers

existence of a management succession plan

intended use of sale proceeds

involvement client is prepared to have in sale process

limitation on due diligence, if any

opinions of professional advisers

reason for sale

support and training provided to buyer where needed

tax position in terms of capital gains and superannuation rollover provisions

timeframe expected by client for settlement of sale.

Source documents may include:

current documentation and official records

financial records, including owner's financial position

fittings and fixtures documentation

franchise agreements

leases

plant and equipment inventories

statutory paperwork.

Structure, ownership and status of plant and equipment may be determined and verified against:

current documentation and official records

relevant federal, state or territory, and local government legislation and by-laws

statutory arrangements and regulations regarding incorporated bodies, public companies, corporations, businesses, sole proprietors, partnerships and franchises.

Conditions of occupancy may include:

agreements

certificates

contracts

environmental conditions

franchise

lease

licences

native title

permits

statutory concerns

title.

Status and ownership concerns may include:

authority to sell

debtors

financial viability

intellectual property

management and staff

ownership structure

plant, fixtures, fittings and equipment

security of tenure

stock

warranties and liabilities.

Pricing structures and price break-ups may relate to:

client-financed sale

encumbered or unencumbered

method of sale, such as auction or direct purchase

plant and equipment as separate sales

pricing for sale of business as a whole or in component parts

staggered purchase and/or retention arrangements

tax implications.

Marketing plans may relate to:

market trends and conditions

preferred, optimum and minimum acceptable outcomes

timeframes for listing and marketing

type of listing

where and how business would be marketed.

Further information may relate to:

agency procedures

appraisal processes

marketing processes.

Formal documentation may include:

agency agreements

agreements on listing and appraisal process between the agency and client

draft contracts

information for client on the listing appraisal and marketing process

listing forms, including fee negotiations

sellers' disclosure statement.