Business valuations are expert reports providing comprehensive yet concise guidance on a value of a business, clearly explaining the rationale and methods used in determining a business’ value.
Business valuations are designed to be user friendly and compiled with the user and end purpose clearly in mind. On this basis, business valuations compiled for use in the courts may take a different format to those written for confidential use by business owners for the purpose of planning for the future.
1.Why Might Your Client Require a Business Valuation M&A
• Sale of Business
• Share Transfers
• Planning for the Future
• Partnership Disputes
• Family Law Matters
• Estate Planning
• Company Restructures
• Taxation Purposes
2. What Should a Business Valuer Consider When Forming Their Opinion?
Business valuers should consider all manner of financial, non-financial (including but not limited to operational matters, contracts, employees, suppliers and customers), industry and broader economic factors in forming a justified and defendable opinion of value.
3. Who Can Value a Business?
Business valuers should have sufficient experience and expertise enabling them to provide logical and defendable valuation advice.
Although there are no licensing requirements for business valuers offering their services in New South Wales, it is imperative that your valuer has completed education relating specifically to valuation matters. Such education can be completed through accounting bodies (including the institute of Chartered Accountants) and the peak industry body for Business Brokers, the Australian Institute of Business Brokers.
4. Key Considerations
There are a number of key considerations that are universally applicable to the value of all businesses. Things such as real property leases, employees, customers and clients, suppliers, the economy, goodwill and finances all play an important role in helping the business valuer determine the worth of the business. All of these considerations can have a significant impact on a final value of a business.
Find Out More
If you would like some more detailed information please download a copy of our Business Valuations Comprehensive Reference Guide or give at Quinn M&A a call to have a confidential discussion with one of our valuation experts.