BUSINESS VALUATION METHODOLOGY
Difference between capitalisation and discount rates in business valuations
In business valuations, capitalisation and discount rates are used to convert anticipated business incomes into business value estimates. Both capitalisation and discount rates are divisors applied to business income measures under the income-based valuation approach; however, the application methods differ... Read the article...
Business valuation approaches and methods for startups
The business valuation approaches commonly used for established business - income approach, market approach and asset approach - can be applied for valuing startups, but only to some extent. This extend is limited by the fact that startups do not have established revenue streams... Read the article...
Business valuation approaches and methods
There are three major commonly used business valuation approaches: income approach, market approach and asset approach. Under each approach, the value of a business can be determined by a number of methods... Read the article...
BUSINESS VALUATION PRACTICE
Important aspects of a business valuation service
Before a business valuation service commences, it is important to establish the business valuation purpose – is it transaction-driven (for a buyer, seller, investor), litigation-driven (divorce, shareholder disputes), tax-driven (CGT, related parties’ transactions) or to be used for accounting and financial reporting... Read the article...
Types of business valuation services in Australia
APES 225 Valuation Services indicates that the following three types of business valuation services can be provided by qualified Australian accountants, members of professional bodies such as CPA Australia or Chartered Accountants Australia and New Zealand... Read the article...
Who can perform a professional business valuation in Australia?
In Australia, no specific qualifications are required to provide business valuation services. In practice, the majority of business valuations are prepared by accountants, in particular qualified professional accountants... Read the article...