The Business Valuation Specialist

A business valuation is an opinion expressed by an expert as to the value of a business asset on a particular date.

You might require a business valuation for the following purposes:
Litigation, restructuring of ownership, accounting/tax purposes, sale of business, purchase of business, partnership dissolution/redistribution, expert opinion (litigation) and any other purposes.

This will depend on the size of the business, the purpose of the valuation and whether or not it is for litigation purposes. Our general range is $2,900-$5,900 plus GST and can be higher. We would be happy to quote you and for this purpose, please use the form below

We will provide you with a Letter of Engagement outlining the process, then obtain a full information brief including financial history and documentation. We work with your financial advisor or accountant to obtain the information we need.

Market value is the value of an asset according to how that asset would be transacted in normal market conditions. It is often defined as the price at which a willing but not anxious buyer and a willing but not anxious seller would do a deal over the transfer of a particular asset. The valuer will be looking for good data and using all his or her experience in arriving at the value of that asset in consideration of the evidence. Above all, it is an expert opinion about the value of an asset involved in a potential transaction at the date of the valuation.

A reliable Business Valuer should
– Have undertaken a course of study
– Be able to prove considerable experience in valuing businesses of the type under consideration
– Have access to and use evidence to support the expert opinion.

If you find all these things in a business valuer, you are on the right track!

Using the income approach, the valuer is expressing an opinion as to the value of the business at a particular date, based on an assessment of future income. Then the valuer will assess the risk of that future income being maintainable post hypothetical transaction and assess what return on investment (multiplier) should be applied considering that risk

The cost approach will be used by a business valuer when the value of the assets of the business would be worth more than the value of the business if an income method was applied.

This involves valuing the assets in one of three ways:
* Fire sale (urgent)
* Quick sale
* Ordinary sale (often when the assets are sold as a whole)

Obviously, the value would be higher for a quick sale and higher still for an ordinary sale. An ordinary sale would normally involve valuing the business assets on a going concern basis

These are two ways of looking at the same concept. If a business valuer assesses that the RISK of potential earnings been maintained into the future is high then that valuer will apply a smaller multiple to the earnings. Let’s say that valuer chooses a multiple of two. Then return on investment sought is 50%. If the multiple were three the return on investment sought would be 33.3%.