Five step valuation process
The Process of Valuation varies according to the size & nature of the business, the current state of the business and the date for which the valuation is performed. Regardless of the variables involved, the general steps are as follows.
01.
Interview with Instructing Party
The purpose of this is to establish the reason for the valuation and to advise the client of the most appropriate approach and methods required to achieve the best results.
02.
Business Investigation
An understanding of the business is attained through a thorough inspection of: the business, the relevant documents and data gathered from the owners and key staff (where applicable).
03.
Analysing Data Collected
Establish the level of profitability and observe internal/external influences & levels of risk associated with the business.
04.
Determine Value of the Business
Based on all financial and operational information collected, and utilising several appropriate valuation methods, an opinion of the business value is established.
05.
Production of Valuation Report
A full report outlining processes and justifications is prepared with the capacity to be used for whatever purpose instructed by the client
In the end, every little bit of information matters. The most important part of the machine is to have all necessary information ready and available before the Valuation cogs start rolling.
Frequently Asked Questions
How Much Does it Cost?
Flat Rate of $3,999 plus GST
How long is it going to take?
7-10 working days.
Can we give you tax returns & you give us a quick valuation?
No we can’t. To provide any valuation, an understanding of the risks involved must attained. Tax return – click here!
Do you do valuations if the business is not profitable?
Absolutely, in cases where a business cannot display any profits (ie new businesses/underperforming businesses) a method of valuation is used to identify the value of the assets. This method takes the total value of the assets net of the liabilities.
Can you value a business based just on the turnover without the full financials?
No. Without taking into account the liabilities, cost of goods, expenses and adbacks the Adjusted Profits cannot be calculated. On top of this, a full understanding of business operations is needed for an accurate valuation.
