A business valuation determines the value of a business and can be used for a variety of reasons including purchase or sale of a business, business restructures, legal disputes including matrimonial resolutions and tax compliance.
Our Business Valuation Services
Business valuation services are a specialised area and can only be carried out by a specialist with appropriate skills and expertise as set out by accounting ethical standards. Our Business valuations team has the necessary expertise and skills to meet all of your business valuation needs. We recognise the importance of the business valuation process and therefore the integrity of our valuations is paramount.
At PAL Accounting & Advisory we provide valuations for businesses of all entity types across all industries. We use a methodology that is highly regarded within the industry and is accepted by law courts across Australia. Our team takes the time to get to know your business intimately through initial conversations with the main stakeholders. We then analyse the financial position taking into consideration the industry, structure, strategic vision and other aspects of the business.
We work closely with stakeholders to ensure all assumptions used in calculating the value are correct and take the time to explain the methodology and outcomes. Our detailed valuation report is delivered in an easy to read format, clearly setting out the scope, methodology, assumptions and outcomes of your business valuation.
Frequently Asked Questions
Business valuation services is the process of estimating the value of a business. The process relies heavily on professional judgment of an expert business valuation accountant who considers factors such as profits, net assets, industry factors and many other relevant aspects.
There are three key business valuation methods that are generally accepted:
Asset valuation method
Calculates the value of tangible and intangible assets
Discounted cash flow analysis
Determines the present value of future opportunities or cash flow
Capitalisation of profit method
Multiplies a business’s adjusted net profit by a capitalisation rate
The circumstances of your business will determine the valuation method used. Business valuations can be impacted by multiple factors. Thus, it’s best to talk to a professional business valuation accountant for a recommendation on the best valuation method for your situation.
To determine your business’s valuation, you can speak to a recognised business valuation accountant. Professional business valuation accountants such as those from PAL Accounting & Advisory have the knowledge and skills to analyse all the details related to your business and calculate your businesses value.
Costs for business valuations can vary significantly depending on the business and the purpose of the valuation. For valuations suitable for business purchases and sales, restructures and income tax purposes as well as short form valuations, these start from $2,000 + gst. Costs may increase if the valuation is required for legal purposes as the report must be more in depth and comply with the expert code of conduct for each specific court.