The industry dynamics are putrid, with valuation fees from the...

The industry dynamics are putrid, with valuation fees from the major banks spiralling downwards in recent years. Recently CBA announced that HTW and CBRE would be their major providers for residential valuations - not sure if LMW were previously a major provider to them (I worked for a competitor until recently). Westpac recently out to tender for residential valuations and 20% + cuts to fees expected following big cuts to ANZ fees last year. Most NAB residential valuations are done from the desk or kerbside inhouse. Most valuers expect the residential segment of the industry to largely disappear in the next five years, replaced by automated models and desktop assessments, which is seeing firms scrambling to find non-bank work (hence MVS acquisition), and resulting in greater competition in this space. You would have to expect the current fees for government work enjoyed by MVS will see heavy downward pressure come contract renewal time.

Positives are harder to spot, though one would expect they are in a position to financially outlast their competitors. Reckon they will still need to run pretty fast to stand still in a very challenging industry. Clearly they have been able to raise plenty of money recently and I wonder what they are seeing that those at the coalface are missing?