Insights into business valuations
To help our clients understand business valuation aspects better, we share some insights into business valuation methodology and practice.
BUSINESS VALUATION METHODOLOGY
Business valuation approaches & methods
last updated February 2024
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 methods for established businesses in Australia
June 2025
There is a number of valuation methods which can be used to determine business value of an established private business. However, no one business valuation method is definitive. Hence, it is common practice to use several methods in such valuations… Read the article…
Business valuation methods for startups
last updated June 2025
Business valuation methods appropriate for startups differ from methods used to value established businesses. As startups do not have established revenue streams, a history of earnings or significant assets; their valuation process relies heavily on projections and assumptions provided by the founders… Read the article…
Difference between capitalisation and discount rates in business valuations
April 2019
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 PRACTICE
Important aspects of a valuation service
April 2020
Before a business valuation 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 valuation services in Australia
last updated March 2024
APES 225 Valuation Services indicates that the following three types of business valuation engagements 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…
Qualifications required to prepare business valuation reports in Australia
April 2017
In Australia, no specific qualifications are required to prepare business valuation reports. In practice, the majority of business valuations are produced by accountants… Read the article…