Corporate Business Valuation

​​​Corporate business valuation services can be required for a number of purposes, including establishing the price when selling or buying a business and determining fair value for taxation or financial reporting. Apart from setting the business value, a business valuation can point to areas the buyer or seller had not previously delved into – it may highlight problems the business has, identify potential improvements and opportunities to increase the business value.

Business value can be determined by a number of approaches and methods, yet no one business valuation technique is definitive. Therefore, our professional business valuers use a combination of various business valuation approaches and methods when performing corporate business valuations:

• Capitalisation of Earnings method (also referred to as Capitalisation of Future Maintainable Earnings, FME) is an income-based business valuation method which estimates business value by converting expected future earnings of a business (derived based on the past earnings) into a value by dividing them by an appropriate capitalisation rate. The method is a reliable methodology to use for mature profitable businesses as it relies on achieved business results.

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• Comparative Transaction method is a market-based business valuation method which values a business against recent acquisitions of comparable businesses in the market using various price multiples: multiple of gross revenue, multiple of net sales, multiple of Seller’s Discretionary Cash Flow, multiple of Net Cash Flow and so on. Various adjustments can be applied to the derived value, if necessary, to reflect specific aspects of the business. 

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• Capitalised Excess Earnings method is an asset-based business valuation method (sometimes referred to as a hybrid asset/income method) which calculates the business value as the sum of the fair market value of the business net tangible assets and the business goodwill (determined through the capitalisation of the excess earnings).

 

• Rule of Thumb valuation methods for established businesses are typically market-based methods that estimate business value based on the evidence of business selling prices in the same industry. As rule of thumb business valuation methods generally rely on industry averages and do not consider qualitative aspects of the business being valued, we only use them in conjunction with other, more analytical, valuation methods and techniques.

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​What is included in our Business Valuation Reports?

Our standard Business Valuation reports cover the following content:

• Executive summary
• Description, nature and scope of the business valuation assignment
• Industry overview
• Business overview: non-financial information
• Business overview: financial information (historical and forecasts)
• Valuation context
• Valuation assessment
• Conclusion of value

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How does it work? How long it takes?
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1. Call us on 02 4295 0079 or Request a Call Back
2. Book a time to brief our valuer over the phone
3. Telephone briefing is conducted to confirm the scope and pick up the details
4. We request additional information: 
   a.    financial statements for the last three years (Profit & Loss, Balance Sheet)
   b.    interim financial statements 
   c.    tax returns
   d.    forecasts/budgets for future years (if available)
   e.    other financial and non-financial information (if required)
5. We send you an invoice for the full amount
6. We send you a draft business valuation report for review and comments in seven business days (for small businesses) following our receipt of the full payment and the required additional information
7. We send you the final business valuation report in two business days after our receipt of your comments

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How much does a Business Valuation cost?
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Our Business Valuations cost from $945. The price depends on the size of the business and the scope of the valuation engagement. Please contact us to obtain a quote.

Benefits of a professional Corporate Business Valuation:

For business sellers:

• Indicates and reasons how much your business is worth
• Highlights potential improvement areas and gives you a chance to address them to increase the business value

For business buyers:

• Indicates and reasons how much the targeted business is worth
• Highlights errors, irregularities and potential exclusions in the seller’s financials statements

For both sellers and buyers:

• Independent evaluation of the business value
• Helps sellers and buyer negotiate the best selling/buying price 
• Prepared by a professional valuer/accountant with appropriate qualifications and experience in accounting, business and finance

Professional Business Valuers 
is a CPA Practice

For more information about
​CPA Australia, click here.

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Why choose Professional Business Valuers?
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• ​​Our valuation reports are prepared by experienced CPA accountant​s

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• We are objective and independent, we are not affiliated with any third parties

• Our valuation reports comply with professional and ethical standards issued by the Accounting Professional & Ethical Standards Board Limited (APESB), Australia

• Our valuation reports comply, if required, with the International Valuation Standards (IVS) issued by the International Valuation Standards Council (IVSC)

• We offer competitive, fixed prices

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• We offer fast, on-time service

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• We maintain high level of professional competence, excellent skills and good judgement

ABN 98 102 344 585​
​Liability limited by a scheme approved under Professional Standards Legislation

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​Our business valuers provide professional corporate business valuation services for clients across Australia, including Sydney, Melbourne, Brisbane, Gold Coast, Sunshine Coast, Cairns, Darwin, Perth, Adelaide and Hobart.​
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