A business valuation provides an independent assessment of your business and it’s potential value. But when should you arrange a valuation and why is it important?
Typically, clients utilise this service for:
- Sale of business and succession.
- Assessing a business opportunity or merger.
- Strategic planning.
- Capital raising and other financial requirements.
- Where there has been a death or family law dispute.
- Tax requirements (to validate tax planning strategies – don’t let the tax man be the valuer)
- Shareholder disputes.
What does a business valuation do?
A valuation provides an independent opinion and provides a basis to confirm the value of your business. What is being valued also varies from business to business and the needs of the client. For example, it might be the whole business, only the business assets, a minority or controlling interest, or intangibles.
A valuation may also help identify areas where value could be enhanced over time. For example, if your business has a pattern of low profitability and under-performance in its sector, you can focus on establishing a pattern of profitability over a few years to enhance the value of your business.
A business valuation is more than an assessment of the financial statements of the business. We explore factors such as the history of the business, the business model, business sector prospects, an analysis of key revenue and profit streams, current and forward period budgets, the organisation and its people structure, competitor and sensitivity analysis, limitations, and material events and transactions. This will mean visiting the business, compiling key documentation and talking to you to clarify key issues and events.
The resulting valuation report documents our valuation opinion, the purpose and scope of the valuation, what has been valued, the assumptions we have made to arrive at our valuation opinion, and any necessary disclaimers on the valuation opinion.
To arrange an independent assessment of your business’s value call (03) 5331 3711.
DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.