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Corporate valuation

Our Corporate Valuations can serve many purposes – from establishing the transaction price when selling or buying a business to determining the fair value for taxation or financial reporting. Apart from setting the business value, they can also point to areas not previously delved into – problems in the business, areas for improvement and opportunities for the value enhancement.

Corporate business values can be determined by a number of methods; however, no particular one is definitive. This is why, our business valuers use a combination of business valuation approaches and methods when performing valuations for established businesses. These may include:

  • Capitalisation of Future Maintainable Earnings (CFME) – an income-based method most commonly used in Australia to value established private businesses with a history of profit. The business value is calculated by dividing the expected future maintainable earnings by an appropriate capitalisation rate.
  • Comparable Transaction – a market-based method which values a business against recent transactions of comparable businesses in the market. Such market transactions are analysed to derive various price multiples, which are then adjusted and applied to estimate the business value. The method is appropriate for industries where companies are actively transacted and the relevant details of such translations are available to the valuer.
  • Asset-approach methods assume that the value of a business rests in its underlying assets. These methods can be effectively used to value asset-intensive businesses which predominantly rely on its physical assets to generate revenue.

How our Corporate Valuations are presented?

We present the output of our Corporate Valuation service in a formal valuation report which includes:

  • 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 a corporate valuation cost?

Our Corporate Valuation price depends on the business size and the valuation engagement scope. It starts from $2,085 incl. GST for a full-scope engagement. Please contact us to obtain a quote.

How does it work? How long does it take?

  1. Call us on 02 8072 8929 or email us at julia@professionalbusinessvaluers.com.au. We offer valuation services across Australia, including Sydney, Melbourne, Brisbane, Gold Coast, Sunshine Coast, Cairns, Darwin, Perth, Adelaide and Hobart.
  2. Fill in our Corporate Valuation questionnaire (we provide it after the initial communication).
  3. 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)
  4. We will then contact you for more information, if required, advise the available dates to start on your valuation and send you the engagement letter and the invoice.
  5. It will take us from seven business days to prepare your valuation report draft after the required information is provided and the payment is received. We will send you the draft for review and comments.
  6. After your comments are provided, we will take from two business days to finalize your valuation report.