Corporate Business Valuation service
Our corporate business valuation service 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. Some of the methods include:
Capitalisation of Earnings
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.
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, multiples of earnings and so on. Various adjustments can be applied to the derived value, if necessary, to reflect specific aspects of the business.
Capitalised Excess Earnings
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
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.
Benefits of a professional Corporate Business Valuation service:
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
- Helps business sellers negotiate the best selling price
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
- Helps business buyers negotiate the best buying price
For sellers and buyers
- Independent evaluation of the business value
- Prepared by a professional valuer/CPA accountant with appropriate qualifications and experience in accounting, business and finance
What is included in our Corporate Business Valuation reports?
Our standard Corporate 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
- Valuation context
- Valuation assessment
- Conclusion of value
How much does our Corporate Business Valuation service cost?
The Corporate Business Valuation service price depends on the size of the business and the scope of the valuation engagement.
Our full-scope Corporate Business Valuation service costs from $1,885, including GST.
Our Calculation Engagement valuation service costs from $945, including GST.
Please contact us to obtain a quote.
This is how we would deliver your Corporate Business Valuation service:
- Call us on 02 4295 0079, email us at firstname.lastname@example.org or Request a Call Back
- Fill in our Corporate Business Valuation questionnaire (we provide it after the initial communication)
- Provide the following information in addition to the competed questionnaire:
- financial statements for the last three years (Profit & Loss, Balance Sheet)
- interim financial statements
- tax returns
- forecasts/budgets for future years (if available)
- other financial and non-financial information (if required)
- We will then contact you for more information, if required, advise the available dates to start on your Corporate Business Valuation service and send you the engagement letter and the invoice
- We will take from seven business days to prepare the Corporate Business Valuation draft after the required additional information is provided and the full payment is received
- We will send you a draft business valuation report for review and comments
- After your comments are provided, we will take from two business days to finalize your valuation report