FAQs

Our Sales Process
1. Financial and Business Analysis
2. Valuation
3. Information Gathering
4. Promoting your listing
5. Fielding Enquiries
6. Meeting the purchaser
7. Negotiation
8. Managing the closing process

Here is our RoadMap for you as an Infinity Seller.
The RoadMap was designed with three goals in mind, and based on over 100 similar transactions.
Just like Google maps or even the old Gregory map books, our job is to get you to the destination (sale) in the safest and surest way. The Infinity RoadMap will step through all the stages and expectations of the sales process. We want you to feel extremely comfortable in the knowledge that we will be there for you Every Step of the Way!
Whilst the RoadMap may seem overwhelming at the start, we will chunk it down at each stage as we progress, we have got your back!

THE GOALS
1. Correct Valuation of the business. All we do is sell Training Businesses so we are best positioned to correctly value the RTO and have a detailed process for achieving the best value.
2. To navigate a smooth journey. We know where the potholes are on the road and we know how to avoid them. It is not about just arriving in the fastest possible way, it is about getting there safely.
3. To save you time and money by ‘holding your hand’ through the whole process and having processes in place that work.
We will hold your hand until the RTO is sold including Regulatory changeovers (and beyond if needed).

The first step toward selling your business is taking a good look at the numbers including student numbers, course enrolments and of course the financials.
Below are some of the items you should have available:
Profit and Loss Statements
Audit Reports
A rough idea of WIP (Work in Progress)
Assets included in the sale
Copy of the Lease

Buyers will want to see the current financial position of the business as well as future projections. Having current financial information prepared by your accountant ready saves time and pressure during the early stages of the sale.

At every stage of your business journey you should know the value of your asset. When it comes to the all important valuation we understand the metrics of RTOs and utilise a cutting-edge, 19-point criteria, designed by the team at Infinity, specifically for RTOs and Training Business’s.
To receive a FREE valuation of your RTO and suggestions for increasing the sale price of your RTO contact us.

We do not charge anything upfront as we partner with you on the sale and therefore only get paid when you get paid. This ensures we remain motivated to get it done.

On settlement it will be 10% of sale price.

To understand what Infinity Business Brokers do to assist you in a sale, email us https://infinitybusinessbrokers.com.au/contact/

It really depends on a number of factors (including of course the sale price and registration). That being said, without holding funding contracts shortens the time. Our average is 2-3 months from start to close.

It certainly is possible and we can find a buyer to take the majority share position. This is often a way to increase your earning.

We use both lagging indicators (P&L and Balance sheet) and leading indicators (enrolments) when we value the business. So this may be an option based on projections.
Profit levels form a main part in our valuation.

The value depends on may things however in ALL cases, having a clean 7 year window is better. It is funny because it is more a perception than reality. What I mean is, the new owner will make changes to delivery, student cohort and everything so they will need to redo TAS, assessments, etc.
As a guide, and for this I am talking about a shell RTO with no students. Having the re-registration changes a shell from $120k to $180k which is a 30% uplift.

There are a couple of videos that I encourage you to watch from our website. The guy presenting them is butt ugly but knows his stuff!!! They will assist in understanding how we value RTOs and how at the moment they are a risk-free investment.

Here are a couple of links.

Why a RTO is a non-depreciating asset.
How we value a RTO
Factors we consider in a valuation of a RTO

We do have ways to attack the registration question which we will discuss.

As we do not take anything upfront, we want to know we are working hard in the view we will get paid when we get the result. To be honest, finding the buyer is the easy part, getting you safely to the finish line is where the skill set comes in and something we are proud of. It is for these reasons, we tend to only do Exclusive Agreements.

I understand this may not work for everyone. We have found the only time something goes amiss is when we do not follow our detailed processes. As such we do prefer to always follow the tried, tested, and trusted processes.

We use over 80 factors to determine the current value of the RTO. Instead of me listing them all here, here are two videos that tackle this question.

How to value a RTO so that you maximise the opportunity.

The advanced science behind RTO valuations

This is hardest question to answer because I am not the buyer. Our experience shows, if we get the above right and follow our processes we will achieve the result with the highest price, in the least amount of time with the best terms.

There are many factors that will contribute to the timing.

Normally within 7 days from being advertised we are receiving enquiries.

We then filter out those not suitable because they are not ready to buy and we go to work with the buyers.

YES and NO. We have sold over 140 RTO, CRICOS and Higher ED over 8 years so there is very little we have not seen. BUT, every RTO is different and we appreciate the nuances in the industry. We can promise one thing – We will have your back throughout the whole sale timeline.

We prefer to go through the appraisal WITHOUT knowing what you think the business is worth as we prefer to use market data when valuing an education business. It is important to strike a balance between vendor expectations and what the market will realistically support. Our experience will assess your desired price against our market analysis and provide you with a recommendation that maximises your outcomes while keeping expectations realistic. This approach ensures transparency and aligns with our commitment to integrity in our dealings.

We are not in to “putting a price on it and seeing what happens” (and you should be wary of this unsophisticated price. We rely on empirical data and concrete market data to value your educational business.

We set the price based on a deep understanding of the market, incorporating extensive data analysis and industry insights. Our goal is to ensure your business is positioned competitively while achieving the best possible return.

We factor in the unique aspects of your business, current market conditions, and comparable sales.

By aligning our pricing strategy with these elements, we aim to attract serious buyers and secure a successful sale.

The answer to this is when you are sale ready.

Looking at the 135 Educational businesses we have sold, only 4% of these were totally sales ready. This totally blew me away when I analysed it.
By not being sale ready we immediately lessen the chances of achieving our ‘Holy Grail’ of the three focus points we search for:

• The Highest possible price
• Least amount of time for the transaction and
• Best terms

Therefore, the worst time to sell is when you really, really are desperate to sell. Preparation wins all the time!

Can I get funding to buy a RTO?

Yes, you can get funding to buy a Registered Training Organisation (RTO) in Australia.

The funding options primarily include commercial loans from banks, vendor finance where the seller provides the funding terms, investments from private equity if it’s a larger scale acquisition, or potentially using personal capital for self-funding. Each of these methods has different implications for control and financial commitment, so it’s essential to carefully consider which option aligns best with your financial situation and business goals.

That being said, as there are no fixed assets normally, banks will lend up to 50% at best.

Here is a link to a video with a lending specialist

Why should I use a business broker?

Selling an education business can be an extremely time consuming process. It is essential to have the right team in place to assist you along the way. Employing a broker to assist with the preparation of the business for sale and throughout the sale process will free up the owner to continuing doing what they do best and that is the day to day operation of the business. Your broker can work with your accountant and legal team to save you both time and money throughout the process.

A Broker will be able to give you an objective valuation of your business and will also be able to provide you with a clear picture of the current market. A Broker will also have the ability to match your business with targeted buyers.

Here is a video on some of the things Infinity do

We do NOT charge an advertising fees or marketing fees. We do not charge a listing fee either. Why? We believe in getting the right result so we only charge a commission based on the sale price. We appreciate some other generic brokers may have a lower commission however, the service we provide is far greater and the value we provide is measurable.

Please take a look at our website, www.infinitybusinessbrokers.com.au to learn about us. Here you can also see recent testimonials from satisfied clients. They always are our best advertisement!

As we do not take anything upfront, we want to know we are working hard in the view we will get paid when we get the result. To be honest, finding the buyer is the easy part, getting you safely to the finish line is where the skill set comes in and something we are proud of. It is for these reasons, we tend to only do Exclusive Agreements.

I understand this may not work for everyone. We have found the only time something goes amiss is when we do not follow our detailed processes. As such we do prefer to always follow the tried, tested, and trusted processes.

Yes, we understand the importance of confidentiality. We take measures to protect your identity and business information throughout the sale process, disclosing details only to qualified and serious buyers who have signed confidentiality agreements.

Our post-sale support includes assisting with the transition process, providing guidance on operational handover, and offering strategic advice to ensure a smooth transition for both the buyer and seller.

If I had $1 for every time I have been asked this question, I would be sending this email from a resort, having a beer, and sunning myself in the pool – ok, maybe too visual…..

Seriously though it is a great question.

I shot a short video discussing both sides of this time-old argument. The video could have been longer covering every point on this I have learnt from my 23 years in the RTO industry.

Back in the day, I actually set up my own RTO, I have also purchased RTOs and I have sold over 125 RTOs so I can certainly answer this question from all sides.

Also of high importance are recent Government changes. As you will read in below, they are basically saying they will stop new entrants from even registering their RTO.

https://ministers.dewr.gov.au/oconnor/integrity-legislation-crack-down-dodgy-vocational-education-and-training-vet-providers

In relation to an audit after the sale, this is not an audit of the RTO but more so of the new director but yes, you will need to produce a financial viability risk assessment.

The actual cost for setting one up from scratch is between $40,000 – $60,000 depending on the scope you need and the availability of learning resources. If you were looking at CRICOS add another $20,000 to this and another 9 months.

So the two questions are, how much is 12 – 24 months worth? How much risk can I handle of not being approved. That is why there is a price difference.

After you view this, I am happy to discuss how it relates to you and your particular situation.

https://www.youtube.com/watch?v=xD_ni_UtsCg

There are many steps involved and the key to know is we have your back throughout the process and importantly, we have clearly defined processes for the purchase of a your new RTO.

Here are two videos discussing the two stages in the RTO buying process.

Your stress-free guide to buying a RTO

Your stress-free guide to buying a RTO (Part 2)

As you go through the process, we will answer all questions not covered in the videos.

When the time is right – Absolutely!

Meeting the vendor is an essential steps in our process. We ensure these interactions are highly efficient and informative. Before you meet with the vendor, we’ll provide you with all the necessary details about the business to verify the information firsthand. This approach is designed to maximise the value of your time and make the meeting as productive as possible.

Sometimes though, these meetings are not needed if it is a simple shell transaction but we are always ready to have the meeting if required.

During the meeting, normally on zoom, a member of our experienced Infinity team will moderate the meeting. Our presence adds significant value, as we bring a deep understanding of both the buyer’s and the vendor’s perspectives, along with extensive industry knowledge.

This critical phase of the process is often where potential deals are most vulnerable.

By actively facilitating these meetings, we aim to address and resolve any issues that might arise, thereby smoothing the path towards a successful transaction.

This hands-on approach not only helps prevent the deal from falling through but also moves us closer to completing the sale, ensuring all parties are satisfied and fully informed throughout the process.

Yes we do offer Buyer’s Agent Services to acquire a RTO or CRICOS or Higher Education business.

If you know your target industry sector or state, we can act for you to be in the position to understand the opportunities.

We assist individuals or companies by providing guidance, market analysis, and transactional support.

As a guide this service costs between $5,000 and $10,000. Please contact us for further information and guidance.

Here is the Infinity Buyer’s RoadMap.
The RoadMap was designed with three goals in mind, and based on over 100 similar transactions.
Just like Google maps or even the old Gregory map books, our job is to get you to the destination (purchase) in the safest and surest way. The Infinity RoadMap will step through all the stages and expectations of the sales process. We want you to feel extremely comfortable in the knowledge that we will be there for you Every Step of the Way!
Whilst the RoadMap may seem overwhelming at the start, we will chunk it down at each stage. Buyers are equally important to us as vendors so, we have got your back!

THE GOALS
1. To achieve a streamlined process that is proactive and not reactive
2. To navigate a smooth journey. We know where the potholes are on the road and we know how to avoid them. It is not about just arriving in the fastest possible way, it is about getting there safely.
3. To save you time and money by ‘holding your hand’ through the whole process and having processes in place that work.
We will hold your hand until the RTO is yours (and beyond if needed). We will help with the Regulatory changeovers as needed.

Only you can decide if a business is right for you. The Infinity team is here to assist you throughout the process and we do have a number of consultants, financial and legal professionals that we can refer you to to assist with the process.

For those that are buying for the first time, we help guide you through the process to ensure it is seamless and we are ALWAYS ready and welcome to answer your questions.

The first step in buying a business is to work out your budget. To avoid wasting time and energy looking at businesses you cannot afford it is important to establish your budget before you begin the process. Knowing how much cash you have available as well as assets (property, etc) is extremely important. Speaking to your accountant of financer at this stage is a great idea.
Giving your broker a clear idea of your budget will save time as they can then present businesses that are appropriate for you.

The first step in buying a business is to work out your budget. To avoid wasting time and energy looking at businesses you cannot afford it is important to establish your budget before you begin the process. Knowing how much cash you have available as well as assets (property, etc) is extremely important. Speaking to your accountant of financer at this stage is a great idea.
Giving your broker a clear idea of your budget will save time as they can then present businesses that are appropriate for you.

We certainly can assist you entering the RTO market in a very short time. In contrast, if you went down the path of registering your own RTO, it could take 12 months with no guarantee of success.
By purchasing a RTO, these massive hurdles are instantly overcome.
It is actually a great time to purchase an entry level RTO as it is becoming more and more complex in starting your own RTO from scratch. Infinity Business Brokers work with leading industry consultants pre and post sale to assist you with all components of operating a successful RTO.
We have a range of consultants that can work with you across all states to add to scope, change locations, apply for CRICOS, complete Financial viability reports and more. We are proud of our Infinity network to ensure you are always treated with professionalism. As Australia’s only specialist RTO sales Broker, we have a number of high quality RTOS at an entry point price.

Looking to buy an RTO?
Let Infinity Business Brokers help you!
Consider what fundamental necessities you need in the type of business you’re looking to purchase
Our objective is to facilitate a mutually successful transition of ownership, where both the Purchaser and Vendor accomplish their goals.
From initial enquiry through to “Service after the Sale”, we pride ourselves on service that goes the extra mile.
We save you time and money by effectively and efficiently managing expectations and making sure both parties are fair and reasonable in their understanding of the current market.
Both first-time and experienced buyers will value the experience and expertise the Infinity team bring to your transaction.

Yes. It is easy to change. They all are relocatable.

It is ALWAYS a share sale as the company owns the RTO. Basically, the RTO is an asset of the company.

Any bank guarantee for premises goes to you separately to the purchase price. We adjust for this on settlement.

Technically they can however they are almost like two different businesses. Different TAS, different attendance, different compliance. My suggestion is to focus on one of them and then add the second.

It depends on the qualification. It is similar to the existing scope it can be two weeks and go up to 10 weeks. There is a real focus from ASQA to shorten times.

This is a direct quote from the commissioner on 29 April 2024:
“Finally, as signaled in our regulatory performance article, we are conscious of the pressures on some providers in relation to our processing of change of scope applications, which have remained at very high levels and have impacted our ability to meet some service standards. We are taking positive steps to improve our performance in responding to enquiries and assessing applications as soon as practicable to minimise these delays.”

Normally there are agents already in place.

It rarely happens as there is such high scrutiny in the sector. The easiest check is BAS v Bank statements.

It depends on the course, how prepared you are and your submission. It will be normally between 2 weeks and 2 months.

Easy. I can share consultants that can assist in this step.

$225k

All ASQA registered RTO are relocatable to anywhere in Australia. It is the beauty of National Registration.

As this is a CRICOS the best way is to set up a new site and then advise of the closure of the new site. If the new site has previously been used for CRICOS it is a relatively quick and simple process. There are a high number of 9B compliant buildings in Adelaide.

You can have as many trading names as you like and you can even change the company name – I normally advise this is NOT done in the first 90 days but technically and legally you can. What you cannot change is the ACN as this is what ‘owns’ the RTO.

It will come with minimal (if any) students. There will be no student liability.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation, is a widely used measure of a company’s operating performance. It’s particularly useful for assessing the profitability of a company before the impact of financial and accounting decisions—making it a popular metric in various industries, including Registered Training Organisations (RTOs).

For an RTO, EBITDA can be particularly telling as it highlights the core profitability of the educational services provided, excluding the effects of financial structure, tax rates, and large non-cash accounting items like depreciation of educational equipment or amortisation of intangible assets. Here’s how EBITDA relates to an RTO in a practical sense:

1. Operational Efficiency: EBITDA gives a clear view of the profitability from the core activities of the RTO—i.e., delivering training and education—without the noise of how the organisation is financed or how it handles its taxes.
2. Benchmarking: It allows for better comparability with other RTOs by removing the effects of different capital structures or tax strategies. This is crucial when you’re comparing RTOs that may have different levels of investment in physical assets or different financing arrangements.
3. Investment and Valuation: It helps in determining the potential earnings capacity of an RTO, which is essential for pricing in a sale or acquisition. EBITDA multiples are often applied to this figure to estimate the enterprise value of an RTO.
4. Financial Health: EBITDA can also be an indicator of financial health and cash flow available to pay down debt, invest back into the business, or distribute to owners. For an RTO, which might rely on upfront payments or government funding cycles, this can provide insights into cash management effectiveness.
5. It is the way RTO are valued in the market place.

When using EBITDA, it’s also important to remember its limitations—it doesn’t account for cash needed to replace depreciating assets.

Amortisation is the accounting process of gradually writing off the initial cost of an intangible asset over its useful life. This helps in spreading the expense of the asset over several years, reflecting its consumption and utility over that period.

Amortisation in a Registered Training Organisation (RTO) typically involves the systematic write-off of intangible assets over their useful life. Intangible assets in an RTO could include a variety of items that provide value over multiple years but aren’t physical in nature. Here are some examples:

1. Curriculum Development Costs: The costs associated with developing educational courses or programs can be amortised. This includes the design, development, and structuring of courses, which often involve significant initial investment. As a training package typically is 5 years, amortisation is used for a 4 year period.
2. Accreditation Fees: Costs incurred to obtain accreditation for new courses or to renew existing accreditations can be capitalised and amortised over the period the accreditation is valid. This reflects the enduring benefit of the accreditation.
3. Software Licenses: Many RTOs use specialised educational or management software, the costs of which can be amortised over the useful life of the software. This could include learning management systems (LMS) or student management systems.
4. Purchase of another RTO: If an RTO acquires another business, the premium paid over the tangible asset value of the acquired business (goodwill) can be amortised. Goodwill amortisation is somewhat more complex and requires careful accounting to reflect true business value.

There is no cost to buyers for using our services unless specifically engaged as a buyer’s agent – more about that later. Our fees are typically charged to the seller, ensuring that our interests align with delivering the best possible outcome.

We stand behind our vast expertise, experience, and industry knowledge and operate on a success-based fee structure. This means our payment is contingent upon the successful transaction of the property—ensuring we only succeed when our clients do. This aligns with our pillars of transparency and integrity and keeps our focus on achieving results.

Additionally, we manage all associated costs such as advertising, marketing, administration, and listing. We journey alongside both vendor and buyer, guiding each step towards the successful completion of the sale, ensuring a seamless process for all parties involved. This approach not only exemplifies our dedication to superior service but also reinforces our foundational pillars within every transaction we handle.

This does not apply to all RTO as a starting statement. It DOES apply to RTO that are shell RTO or CRICOS. It also applies to RTO with funding. Here is a video that goes into detail.

The hidden value in a RTO

We take a process driven approach and as we are industry specialists we take the time and effort to educate the vendor on the current market conditions.

In short, we use the exact same process for valuing the RTO to the vendor as we do when discussing it with the buyer – No games, no gimmicks, no “meeting in the middle”. Our job revolves around education and not as much negotiation.

Ensuring the price of a RTO is fair and information provided is accurate and truthful is central to our existence. Here’s how we maintain our standards of integrity, transparency, and superior knowledge:

1. Expert Valuation: We conduct thorough valuations using up-to-date market data and our extensive industry expertise to ensure that the price reflects the true market value of the business. This process includes examining financial records, market conditions, and comparable business sales.
2. Transparent Information: We uphold a strict transparency policy where all information provided to potential buyers is verified for accuracy and completeness. This includes financial statements, business operations, legal compliance, and other critical factors affecting the business.
3. Due Diligence Assistance: We guide both buyers and sellers through a comprehensive due diligence process. This involves verifying all aspects of the business, from financial audits to operational checks, to ensure that every detail is scrutinized and confirmed. We use other industry experts including compliance, legal and accounting specialists.
4. Open Communication: We encourage open communication and facilitate dialogue throughout the process at the right times. By ensuring all parties are fully informed and that any concerns are addressed, we uphold our commitment to fair and honest transactions.

We are super proud that we will save you time and money during due diligence as we see our role in due diligence as basically going to work for you. Our vast industry experience will be your friend. We are unlike other brokers that sit in the corner of the vendor and do not move, we conduct almost forensic due diligence BEFORE we take on a listing and this means we can and will assist you.
There are normally 4 parts to the DD process.
Legal – Who owns the shares, structures, leases, etc
Financial – Validation of accounts provided
Compliance – Internal audits, external audits, History
Operational – How is the business run on a daily/weekly basis

The ownership of the RTO does not change. Let me explain….
The company owns the RTO registration so it will be a Share Sale Agreement.
The RTO is and asset of the company, just as the website, bank account, resources, funding, staff, etc are assets of the company. We are not actually selling the RTO we are transacting on the shares of the company, the assets of the company and the assets of the business. This means the only change is to director and shareholders.

Therefore, the basis of change is the “Fit and Proper Person” check.

The “order of events” is as follows:
If state funding is involved, this is the necessary first step.
Once the funding changeover is confirmed (and we use this as a condition precedent to settlement” the next change is at ASIC level. This is the settlement as shares are transferred to the buyer.
The buyer then has 90- days to advise ASQA of the material change.
The only difference is if the business is a CRICOS business, we notify them on the morning of settlement.

We will have your back through the process and our vast experience means we have a good idea of how to transact the sale in the most seamless way.

We have a range of consultants that can work with you across all states to add to scope, change locations, apply for CRICOS, complete Financial viability reports and more. We are proud of our Infinity network to ensure you are always treated with professionalism.

ASQA has moved to a fee-for-service model. The cost to add to the scope can be found here: https://www.asqa.gov.au/about/fees-and-charges/guide.

If you use the guide of $3000 per qualification you will not have any surprises.

Technically they can however they are almost like two different businesses. Different TAS, different attendance, different compliance. My suggestion is to focus on one of them and then add the second.

Travis Latter has refined his knowledge of the RTO industry after starting his own RTO, holding CEO roles with National and International Training Organisations, becoming Acquisitions Manager for an ASX listed company, consulting to over 350 RTOs & Training Organisations and successfully brokering over $135M in RTO Sales.

This experience and dedication provides him with the ability to work closely with all industry stakeholders to ensure successful transactions happen in the optimum time-frames, with the best results.

Travis understands the needs of vendors and purchasers alike and with sharp business acumen and a wealth of business experience Travis guarantees to deliver service based on integrity, commitment and energy.

FOR FULL UNDERSTANDING PLEASE VISIT WWW.INFINITYBUSINESSBROKERS.COM.AU

Expertise, Qualifications and Memberships

• Responsible for over 130 RTO transactions
• Previous RTO owner
• Previous RTO CEO
• Consulted to over 200 RTO on sales and systems
• Acquisitions Manager for public company purchasing RTOs
• Commenced Infinity sales training and Consultancy services
• Specialist RTO Business Brokers since 2017
• AIBB Member
• Certified Practicing Business Broker
• AIBB Chairman – Education and Training
• 2022 Specialist Business Broker of the year
• 2023 National Business Broker of the year (Finalist)

We are very transparent on the associated costs. We only get paid when the vendor gets paid and as such we are happy to back our experience, knowledge and expertise.

Business brokers typically earn a commission based on the successful sale of a business. The commission is usually a percentage of the total transaction value, and the specific percentage can vary based on factors such as the size and complexity of the deal.

We charge nothing at the front end as we work as the partner in the transaction.

As a rough guide:
Businesses valued under $2,000,000 = 10%
Businesses valued between $2M and $3m = 8%
Businesses valued between $3M and $5M = 6%
Businesses valued between $5M and $8M = 5%
Businesses over $5M = 4%

A vendor said to me once, “That is a lot” and the reply was “It is a lot of work”. Here is a link to give you comfort of what we will do for you.

Typically, we do not produce IM for each business. There are six reasons for this.

1. I found most IM I’ve read a full of broker fluffery that doesn’t give any significant data.
2. I would prefer to give you the raw data so you can make a proper analysis
3. The data is always fluid and therefore locking it in to an IM would mean rewriting the document every couple of weeks and I don’t think that is in a buyers best interest.
4.  It is always preferable to have the data to allow better discussions about the specifics.
5. Raw data speeds up the process.
6. Our experience shows each buyer has different requests and comes from a different background of skills and experience.

We will always provide an Executive summary.

The simple answer is YES (with a few ‘IFs attached)

IF we do our job right in valuation than yes. This is crucial and as Infinity value every business, instead of the vendor, we can benchmark each business against everything else in the education sector we have sold over the last 8 years.

IF the vendor is equally transparent then – yes.

IF the data we receive is current, accurate and explained then – yes.

IF timeframes are realistic. We will always explain the current market conditions noting the Education industry changes or pivots roughly every 3 months.

IF the vendors expectations match market realities then – yes.

We have over 8000 registered RTO buyers so we know if the above are considered then the answer to the question is a big fat – YES!

We work closely with legal professionals and regulatory bodies to ensure all aspects of the transaction comply with Australian laws and regulations. This includes adherence to ASQA standards for RTO sales.

Level 1 CRICOS Providers
Level 1 providers are typically well-established, low-risk institutions with a strong track record.
Country Access:
Can recruit students from all countries
Often preferred by students from high-risk countries due to easier visa processing
Funds Required:
Students generally need to show lower amounts of funds for visa applications
Providers may have lower financial requirements for registration and maintenance.

Level 2 CRICOS Providers
Level 2 providers are usually newer or have a moderate risk profile.
Country Access:
Can recruit from most countries, but may face restrictions from some high-risk nations
May have additional documentation requirements for students from certain countries
Funds Required:
Students might need to show higher amounts of funds for visa applications
Providers likely face stricter financial requirements for CRICOS registration and maintenance

Level 3 CRICOS Providers
Level 3 providers are often newer, smaller, or have been identified as higher risk.
Country Access:
May face significant restrictions on which countries they can recruit from
Students from high-risk countries might find it more challenging to obtain visas for these providers
Funds Required:
Students typically need to show the highest amounts of funds for visa applications

Providers face the strictest financial requirements for CRICOS registration and ongoing compliance

It’s important to note that these “levels” are not officially designated by CRICOS itself, but rather reflect the risk-based approach taken by Australian immigration authorities and education regulators. The actual requirements and restrictions can change based on the provider’s performance, compliance history, and other factors.

Providers can move between these unofficial levels based on their performance and compliance with regulations. The Department of Home Affairs and the Department of Education continuously assess providers and adjust their risk ratings, which in turn affects their ability to recruit international students from various countries and the financial requirements imposed on both the providers and their prospective students.

Very few RTOs are 100% perfect when it comes to compliance. What matters is transparency and having a realistic improvement plan. Click here to access some of my most trusted consultants.

Re-registration does not automatically restrict a shell RTO from applying to add new scope within the first two years. That is a common misconception. ASQA assesses each scope application on merit and readiness. For shell RTOs, the burden of evidence is higher, they must demonstrate genuine delivery capability: qualified trainers, compliant resources and systems. For a Certificate IV in Leadership & Management, allow 6 to 10 weeks for the full process. The timeframe depends on the type of evidence submitted, whether audit is required and how current your supporting documents are. Costs generally include ASQA’s application fee (from $1,100), plus resource licensing and trainer costs. For Powertek or similar, prior audit results and historical scope can reduce scrutiny if they’re in good standing.

Appropriations of $77,000 typically refer to the movement of retained earnings or reserves in the balance sheet, rather than a deductible operating expense. It may represent funds set aside for specific use, like dividends, director loans or future capital works, but it does not reduce taxable income unless it’s directly tied to deductible costs. If it relates to profit allocation, it appears under equity, not expenses. A review of the general ledger and prior year treatment should clarify the intended use. Your accountant should confirm whether any related outflows meet the ATO’s deductibility criteria.

No, it is a common misunderstanding. Even with pre-recorded delivery, the Standards for RTOs 2015 require a certified trainer and assessor to oversee the learning and formally assess each unit. Clause 1.13–1.16 mandates that trainers hold TAE40122 (or equivalent) and relevant vocational competency. The pre-recorded material can support learning, but it does not replace the need for a human trainer. Assessment must be contextualised, evidence-based and validated. So while online delivery is encouraged, it must still involve qualified oversight. Anything else would breach compliance and expose the RTO to audit risk.

Yes, and it is recommended before any serious offer. A demo of the LMS (Learning Management System) and SMS (Student Management System) should be standard during buyer due diligence. Access is usually via sandbox login or screenshare under NDA. You’re looking to confirm usability, compliance tracking, version history, integration with AVETMISS reporting and whether it’s cloud-based or hosted locally. For example, aXcelerate, Canvas, Moodle or VETtrak offer different functionality. If it is a custom LMS, ensure support is included post-sale. It’s part of confirming operational continuity.

The short answer: you pause. No buyer is locked in before signing. If you discover something unfavourable, compliance gaps, messy books, weak delivery, you can withdraw, renegotiate or insert conditions. All share sales carry risk, so due diligence is non-negotiable. Some buyers walk away based on audit history or resource quality. Others request vendor warranties or post-sale handover support to close the gap. The key is to identify these issues early and structure your terms to protect your position. I always advise: ask early, clarify in writing and assume nothing.

Yes, there are several key regulatory changes in motion that may affect both the purchase and the future operations of an RTO. First, the new Standards for RTOs are expected to come into effect in early 2025, shifting compliance toward outcomes-based evidence and greater trainer capability tracking. The changes also tighten TAS alignment, delivery validation and engagement monitoring, especially important if the business delivers online or across jurisdictions. Second, integrity reforms are introducing stricter monitoring of funding eligibility, trainer activity and ownership structures. Buyers should assess the RTO’s readiness for these shifts, including resource versioning, assessment validation and LMS data reporting capability.

Yes, funding contracts are impacted by a change in control. In a share sale, the RTO entity remains the same but ownership shifts, most state funding bodies require pre-notification, board approval or reassessment to maintain funding. In some cases, especially in Smart & Skilled (NSW) and Skills First (VIC), contracts contain clauses allowing the government to terminate funding if they do not approve the new directors. The key risks include disruption to student funding, clawback of previous payments or delays in intake. Buyers should confirm these clauses and work with the vendor to ensure continuity during the transition.

Renewal is triggered 9–12 months before expiry. ASQA will invite the RTO to submit a renewal application. Steps include updating all documentation (TAS, trainer matrices, policies, marketing, student records) to ensure compliance with the latest standards. An internal audit is recommended before submission. ASQA then reviews and may conduct a site or desktop audit. If non-compliances are found, rectification timelines will apply. If satisfactory, the RTO receives an extended registration (typically 7 years if low-risk). Poor preparation, non-current resources or outdated TAS documents are common reasons for rejection or short-term registration.

ASQA charges $1,100 as a base application fee for renewal. Additional costs depend on the audit level and qualifications held. Site audit or desktop review can add $2,000–$5,000. Most RTOs invest in a consultant to pre-audit or document review prior to lodgement, expect costs between $3,000 and $12,000. The higher the compliance risk, the higher the cost. Indirect costs may include re-writing TASs, mapping tools and LMS upgrades. Budget for a total outlay of $5,000 to $15,000 depending on internal team capacity.

Some do, some don’t. If it’s a full operational RTO, then yes, it will likely include a compliant facility (leased or owned), training and assessment resources for each qualification on scope and a student database housed in a compliant SMS (e.g. aXcelerate or VETtrak). Shell RTOs may not include a facility or students but might include LMS logins, template TASs and core documentation. Always confirm if resources are fully owned, licensed or third-party authored. Databases should be AVETMISS-aligned with audit-ready reporting capability.

Business registration (ASIC) is different from RTO registration (ASQA). ASIC registration typically has no expiry but requires annual company reviews. You can confirm ASIC status using the ABN/ACN on ASIC Connect. ASQA registration expiry can be found on training.gov.au. It’s vital to check both. If either has lapsed or is due for renewal within 6–12 months, it should be factored into valuation, handover planning and legal review of the Share Sale Deed.

This is best confirmed by checking training.gov.au for the ‘registration date’ of the RTO. However, the ABN may be older or younger depending on structural changes. A long trading history (5+ years) with consistent scope and clean audits increases confidence. If the RTO has operated under a different name or changed scope significantly over time, these should be disclosed. Even newly registered RTOs can be valuable if compliance is clean and scope is current and in demand.

You won’t find this on TGA or ASQA, it’s a commercial question. Ask the vendor directly or confirm through ASIC’s historical company extract. One or two changes over 10+ years is fine. More frequent transfers, especially in short periods, warrant scrutiny. Look for patterns of compliance resets, directorship changes and risk of reputational damage. Ideally, the business has been tightly held and managed under a single operational model. That said, a well-documented sale history is acceptable if supported by good compliance.

Absolutely. The pain points in share sales of RTOs fall into three buckets: compliance, tax/legal liability and cultural handover. Compliance: ASQA may review the entity if previous audit history is borderline. Buyers need to understand the true compliance risk, not just the documents. Legal: The buyer inherits all tax, GST, staff and contractual liabilities. This requires forensic accounting review. Handover: There’s often a mismatch between vendor promises and operational reality. That’s where structured handover support and clear warranties in the Share Sale Deed make a difference.

It depends on the RTO. Some may hold one or more of Smart & Skilled (NSW), Skills First (VIC), User Choice (QLD) or JobTrainer contracts. Each has defined terms and expiry. Most require reapplication every 1–3 years with delivery KPIs, audit conditions and submission of completion and enrolment data. Ask the vendor for contract documents, current delivery sites and historical payment schedules. The existence of a contract does not guarantee continuation under new ownership, it must be approved.

Funding availability depends on the specific qualifications on scope and the state or territory in which they’re delivered. For example, Certificate III in Individual Support is commonly subsidised under Smart & Skilled (NSW), Skills First (VIC) and User Choice (QLD). Each state has its own funding matrix, eligibility criteria and preferred providers. Some qualifications also attract JobTrainer, Productivity Placements or regional incentive programs. A course-by-course funding summary should be requested from the vendor and cross-checked with state training authorities’ eligibility lists. It’s also important to know whether the RTO is already approved as a provider under those programs or if an application is required.

In theory, yes, but gradual change of control raises compliance complexities. ASQA and funding bodies assess control based on influence, not just shareholding. Even a minority owner who acts as a shadow director or key decision-maker may trigger notification obligations. If staged acquisition is pursued, you’ll need a very clear shareholders’ agreement, staged payment triggers and regulatory disclosures. In practice, most vendors and buyers opt for a clean sale to avoid these complications. Funded contracts may not tolerate control changes without approval.

Absolutely. Many buyers expand an RTO’s scope even if they don’t personally hold the qualifications. You’ll need to engage qualified trainers and have access to compliant learning and assessment resources. ASQA requires that you demonstrate delivery capability, mapped assessments and contextualised TASs (Training and Assessment Strategies). So while you don’t need to be an expert in the subject matter, your compliance team and trainers must be. Scope addition usually takes 6–10 weeks depending on complexity and your level of readiness.

Expanding delivery interstate is achievable. ASQA registration is national, so there’s no need to register separately in each state. However, state-specific funding programs (like User Choice or Certificate 3 Guarantee in QLD) require additional approvals. You may need to register as a Pre-Qualified Supplier (PQS) in QLD, demonstrate past delivery, show student demand and prove you have local trainers or partnerships. It’s doable, but involves planning, documentation and time. Online delivery models need to meet state-specific student support and engagement standards.

Most buyers retain existing scope in the short term. The handover includes TASs, assessment tools, LMS access and trainer onboarding. Changes in training models, trainer workforce or student cohorts may trigger TAS revisions and updated trainer matrices. During transition, it’s vital to ensure continuity of delivery, especially for funded cohorts. Buyers often retain the vendor in an advisory or consulting role for 4–12 weeks to facilitate smooth operational transfer. Any intention to add or remove scope should be planned post-transition, not mid-handover.

In some cases, yes. Increased scrutiny from ASQA, more detailed audit requirements and trainer credential tightening have pushed some owners to exit. Others sell due to looming changes in funding or learner engagement requirements. That said, many vendors are selling for strategic reasons, retirement, exit planning or opportunity cost. The best approach is to ask directly, review audit history and assess any recent ASQA correspondence. If the RTO has a clean record and strong enrolments, sale is more likely strategic than reactive.

The new Standards for RTOs (2025) focus on trainer competence, learner outcomes and assessment validation. Expect more rigorous tracking of trainer PD, tighter validation cycles and digital compliance reporting. If the RTO is heavily online, the LMS must now show interaction, feedback and progress. Assessment mapping will need to be airtight. Buyers should budget time and resources for updates over the next 6–12 months to align with the new standards.

If you’re buying a newly registered or shell RTO, yes, the vendor would have submitted the initial application and been through ASQA audit. You should request a full copy of the application, audit report, conditions (if any) and scope documents. If you’re buying an established RTO, this is less relevant, but you should still understand its original intent and how scope or delivery models have evolved since registration.

Yes, Infinity has a proven Share Sale Deed template tailored for RTOs, used successfully in over 100 transactions. We provide this post-NDA and adapt it per deal (e.g. funding clauses, carve-outs, staff retention). We recommend your lawyer reviews it, but our version addresses sector-specific issues like scope warranties, compliance indemnities and regulatory disclosures. We also handle onboarding and transitional documents if required.

You’ll need both an accountant and a specialist advisor. The accountant handles company structure, tax implications and ledger adjustments. However, the transfer involves regulatory risk, RTO-specific compliance and legal obligations. Infinity provides a fixed-fee transfer deed for $1,500. Most clients also engage a lawyer to review the agreement. If funding or staffing is involved, the cost may increase depending on the complexity of carve-outs or earnout terms.

RTOs can use resources that are (a) self-developed and owned, (b) licensed from third-party publishers or (c) co-developed through partnerships. If the RTO owns the resources, this adds IP value. If they’re licensed, you’ll need to confirm whether the license is transferrable and if it allows commercial delivery. Check for expiry, version control and mapping. Don’t assume that ‘resources included’ means fully compliant, ask for mapping and validation documents.

You should ask for a breakdown of all resources by qualification. If resources are internally developed, confirm who authored them, their qualifications and when they were last validated. If externally purchased, request licensing terms, source and evidence of alignment with the latest training package. Buyers should confirm if assessments include mapping, model answers and benchmarks. These impact compliance and audit readiness significantly.

This is critical. Courseware must align with the most recent version of the training package. You’ll want confirmation that all units have been updated for packaging rule changes, updated elements/performance criteria and recent assessment guidelines. Ask for version control logs and last validation dates. Also check whether legacy versions are still in circulation or if RTO has a phase-out plan. If it hasn’t been updated, you may face audit risk or student delivery issues.

Any operational RTO should have a full suite of compliant documentation. This includes learner guides, assessment tasks, mapping documents, trainer marking guides and model responses. Ask to see these for at least two units across multiple qualifications. Poorly mapped or generic tools are a red flag. The gold standard is validation evidence, contextualisation for delivery model and internal moderation processes.

Vettrak is a leading SMS platform. The licence is usually paid annually or monthly, depending on contract. You should confirm billing frequency, user caps, custom integrations and support levels. Also confirm the current version, upgrade policy and whether customisations are transferrable. Ask for a summary of user roles, audit logs and AVETMISS reporting settings. If you change ownership, you may need to transfer the licence formally.

At minimum, the RTO should have public liability insurance and professional indemnity cover. If they deliver in-person, premises insurance and workers’ compensation may also be required. Ask for the certificate of currency for all relevant policies. Ensure the coverage amount meets regulatory and lease requirements (e.g. $10M public liability). If you’re taking over leases or staffing, check that coverage will continue or be reissued under your entity post-sale.

Ask for a full software list, including LMS, SMS, compliance platforms, financial packages (Xero, MYOB), CRM tools and any content creation tools (Articulate, Canva). Check licensing terms, expiry and user access. Integration between systems is a key issue. Well-run RTOs will use 3–5 main systems and have documentation on workflow, user roles and reporting outputs. Avoid ‘Frankenstein systems’, those cobbled together without structure.

Most modern RTOs use an LMS such as Moodle, aXcelerate, Cloud Assess or Canvas. You’ll want to confirm whether it tracks engagement, progress, trainer interaction and integrates with their SMS. Ask for screenshots or demo logins. Online delivery must still meet ASQA’s evidence requirements, just having a login isn’t enough. Also ask who owns the platform (licensed, proprietary or hosted) and how it’s maintained.

If you’re buying a newly registered RTO awaiting audit, you may or may not need to attend depending on whether ASQA schedules a post-registration site visit. If you take over post-registration, you must notify ASQA of a material change of control. Costs may include updating policies, new TASs, trainer matrices and updating LMS/SMS. Expect $5,000–$15,000 depending on compliance gaps. Ideally, retain the vendor temporarily to smooth handover.

Staff retention varies by deal. If you’re buying a going concern, clarify whether admin, compliance and trainers are staying. Retained staff reduce onboarding risk and offer continuity for students. Ensure their employment agreements are valid, transferrable and compliant with the relevant Awards. You may also negotiate retention bonuses or transitional consulting with key people. In some cases, the vendor will agree to stay short-term as part of the sale terms.

This depends on the business. Many small-to-mid-sized RTOs have owner-operators with limited formal management structures. If a team exists, ask who oversees compliance, enrolments, finance and delivery. You’ll want to confirm whether they are contractors or employees, their tenure and whether they intend to remain post-sale. A strong middle layer of managers can be a key value driver, especially if the owner is stepping away. Vendor commitments should be formalised in the Share Sale Deed if ongoing involvement is critical.

Some RTOs have internal marketing and enrolment teams, others outsource lead generation. Ask to review their CRM, campaign performance and enrolment conversion rates. A team that understands compliance limitations in advertising (e.g. no guaranteed jobs, accurate qualification codes) is worth retaining. You’ll want to know whether digital channels, SEO and referral partners are producing sustainable leads. If marketing is vendor-driven, a handover strategy is essential to avoid a sales cliff.

Request an org chart, position descriptions and a breakdown of trainer types (contract, casual, FTE). Most RTOs use contract trainers for flexibility, but you need to confirm they meet Clause 1.13 requirements. Ask for trainer matrices, evidence of recent PD and course allocation by trainer. Also determine who oversees compliance and student support. A well-structured team with redundancy and compliance oversight adds operational value.

Yes, if it’s a campus-based RTO, there may be AV gear, desks, simulators or trade-specific tools (e.g. CPR manikins, construction frames, beauty beds). Request an asset register and depreciation schedule. Check for leased items and finance liabilities. In some cases, equipment is owned by the vendor personally and may be excluded. Confirm in writing what is included, what is leased and what is excluded from the deal.

You should inspect in person or request a video walkthrough. Review size, layout, compliance (disability access, WHS), student amenities and overall fitout. Ask for the lease terms, rent per sqm, outgoings, renewal options and landlord consent to assign. A well-maintained facility boosts student retention and staff satisfaction. Also check whether the training rooms match the delivery model listed in the TAS.

Yes. Most vendors will provide professional photos or a virtual tour upon request. Compliance includes room size, emergency exits, signage, accessible toilets and equipment relevant to the qualifications delivered. Cross-check photos with your expectations and request a copy of the latest WHS audit or landlord inspection if available. For funded RTOs, facilities must also meet contractual standards of the funding body.

Correct, some qualifications (e.g. construction, traffic control, forklift or community care) require minimum space for simulation. Ask for the floor plan and square meterage of the warehouse or practical training area. If in doubt, confirm with the relevant training package or ASQA guidance. If the facility is borderline, you may need to upgrade or relocate. Also confirm any zoning, DA approvals and council restrictions on student numbers or operating hours.

This is a fair question. Many RTOs are priced based on non-financial value, like clean compliance, long registration, funding contracts, resources or location. Even if EBIT is negative, a buyer may value the business as a turnkey solution, avoiding the time and cost to start from scratch. Infinity valuations typically use CFME, rule of thumb and market comparisons. Where EBITDA is weak, we look at asset value, replacement cost and risk profile. The price must reflect both tangible and strategic value, and we’re happy to walk you through the rationale in any specific case.

We provide a current student report under NDA, including course, enrolment date, progress stage, expected completion and fee status. You’ll want to distinguish between funded and fee-for-service students and confirm if any refunds, deferrals or suspensions apply. For CRICOS, include visa status. Unpaid fees must be factored into working capital and cash flow modelling. Also check how progress is tracked, via LMS, SMS or manual record, so you can continue delivery seamlessly.

We break down revenue by course, funding stream and delivery mode. This shows your reliance on certain quals and highlights high-performing products. It also reveals risk, e.g. 80% of revenue coming from one cert in one state is a red flag. This breakdown helps with diversification planning, scope changes and operational focus. Ask for 2–3 years of data to assess trends and drop-off rates.

Most vendors will have annual budgets or cash flow projections prepared for internal use or bank finance. Projections for Jan–Jul 2020 would be historical now, so ask for actuals instead. But if you’re looking forward (next 6–12 months), ask for enrolment forecasts, course profitability, cost assumptions and marketing expenditure. We can help validate or adjust these forecasts as part of our buyer support or valuation service.

Yes. We always request YTD financials and last 3 months P&L for all active RTO listings. You’ll want to confirm revenue recognition policy (cash vs accrual), any spikes or anomalies and seasonal variations. Also check margin stability and fixed vs variable costs. A 3-month P&L is useful for trajectory and cash flow but must be viewed alongside annual data for context.

The balance sheet reveals the true health of the entity: liabilities, intercompany loans, tax debts and cash reserves. Key focus areas include: unearned income (deferred revenue), lease liabilities, aged payables and staff provisions. Check for shareholder loans, ATO repayment plans and funding reconciliation liabilities. We always recommend a forensic accounting review before purchase, especially for share sales.

Yes. Tax returns validate reported earnings and confirm tax compliance. Ask for 2–3 years of lodged tax returns and accountant-prepared financials. Review consistency between reported revenue, taxable income and declared expenses. Also check for amended returns or audit flags. Tax returns help normalise EBITDA and reveal discretionary or one-off items that don’t appear on the P&L.

Yes. These are essential. Ask for ASQA audit reports, rectification notices and DTDW (state funding) audits. Look for critical or major non-compliances, how they were addressed and if they reoccurred. Audit history shapes both risk and value. Also ask whether any reviews, investigations or compliance agreements are pending. A clean audit history strengthens buyer confidence significantly.

For corporate RTOs, this is key to understanding revenue concentration risk. Ask for top clients by revenue, volume and contract length. Look for signs of reliance on one or two customers, especially if tied to a single industry. If the RTO is primarily B2C, this data may be less relevant. In all cases, confirm whether relationships are personal (vendor-linked) or company-held and if continuity post-sale is likely.

In a Registered Training Organisation (RTO), the true value often lies in what you can’t physically see or touch.

While premises, computers and training equipment can be recorded on an asset register, it is often the intangible assets that can make or break an RTO’s success, increase value and provide maintainable earnings. These can include:

• Registration – including length held and length remaining
• Funding contracts
• Intellectual property
• Compliance
• Clients
• Market footprint
• Market reputation, etc

These unseen drivers influence the true value and future profitability. These intangible items are often what buyers prize most when assessing an RTO’s worth.

In Australia’s competitive training market, understanding and maximising these assets is essential for long-term growth and resilience.

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Yes, we are very proud of our work and every single word in our testimonials comes from the exact words of our buyers and sellers. The common thread would be our experience, integrity, knowledge and patience.

Feel free to contact us directly via phone, email, or our website contact form. Our team is always ready to assist with any additional questions or provide further information as needed.