Startup Business Valuation services

Startup Business Valuation

​​Our startup business valuation services help startup entrepreneurs understand what business stake it is necessary to sell to obtain the required startup funding. These business valuation services also help investors evaluate the targeted business.

Our business valuers use various business valuation approaches and methods to determine a startup business value:

  • Discounted Cash Flow (DCF) method is an income-based business valuation method which estimates business value based on the business earning potential. Under the DCF method, the business value is determined by discounting the future business earnings for time (a dollar received in the future is worth less than a dollar today) and risk using an appropriate discount rate. This method relies on accurate earnings projections, which for many startups is quite a guessing game.
 
  • 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, such as multiple of gross revenue, and discounting for various business aspects, if necessary.
 
  • Cost to Create method is an asset-based business valuation method which estimates the business value based on how much it would cost to build a similar business (a business producing similar economic benefits) from scratch.
 
  • Rule of Thumb valuation methods for startups review a set of financial and non-financial aspects of a business to estimate the business value. As startups don’t have a financial history and rely on projections and estimates, the business valuation process should focus on analysis of non-financial business aspects such as business quality (concept soundness, product readiness, team capacity, etc.), risk profile and commercialisation activities progress. In our startup valuations, we use various rule of thumb methods to bring the business value to a realistic figure. 

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What is included in our Startup Business Valuation reports?
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  • ​Executive summary
  • Description, nature and scope of the business valuation assignment
  • Industry/market overview
  • Business/concept overview
  • Financial Plan with business financial projections for five years, including:
    a.    Summary of start-up costs and funding requirements
    b.    Sales projections by month
    c.    Cash Flow projections by month
    d.    Annual Profit and Loss account projections
  • ​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 of work and other details
  4. We request additional 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 five 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 Startup Business Valuation cost?
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Our Startup Business Valuations cost from $945 (for a Calculation Engagement) . ​Please contact us to obtain a quote.

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Benefits of a professional Startup Business Valuation:
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  • Indicates what business stake is necessary to sell to obtain the required startup funding (for startup entrepreneurs)

  • Helps entrepreneurs to negotiate and secure required funding for their startups
 
  • Indicates how much equity in a target startup to ask for in return for the startup funding (for investors)
 
  • Helps investors to determine the value of a targeted startup
 
  • Summarises the start-up costs and funding requirements
 
  • Provides entrepreneurs and investors with professionally prepared detailed financial model in the form of a 5-year Financial Plan
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  • 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.

Why choose Professional Business Valuers?
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  • ​Our valuation reports are prepared by experienced valuers who are CPA accountant​s
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  • We are objective and independent, 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 affordable, 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
Professional Business Valuers logo
​ABN 98 102 344 585​
​​​Liability limited by a scheme approved under Professional Standards Legislation

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