Business Valuations
A business valuation requires a qualified professional. Someone with in-depth knowledge of forensic accounting and financial management. At Melbourne Property Valuers Metro, we have an experienced team of business valuers with the skills and expertise to help owners and investors with setting and achieving their goals.
What is a business valuation?
A business valuation is a comprehensive report of an entity’s worth. What an owner or investor would like to learn from this assessment determines how this is defined. In general, business valuations examine:
- financial statements
- fixed assets
- cash flow
- and other significant details.
These factors are used in tandem with the most appropriate valuation methods to calculate the value of an entity as a whole or in part as required.
Why are valuations needed?
As there is a great number of businesses operating across many industries, the valuation of a business differs greatly from one to the next. The same can be said for the number of reasons a report may be needed.
Common purposes for a business valuation include:
- Mergers and acquisitions
- Financial reporting
- Related party transfers
- Taxation
- Analysing a current or potential investment
- Litigation
- Shareholder disputes
- Exit or succession planning
How are businesses valued?
Valuers employ many business valuation methods. Their approach is decided by the purpose of the report and the type of value that is to be determined. These values can include:
- Synergistic value
- Going concern value
- Net book value
- Equity value and more.
If your report is needed for taxation or other legal use, the most accepted and utilised methods are:
- Discounted cash flow
- Capitalisation of future maintainable earnings
- Comparable trading
- Comparable transaction
- Net-based assets approach
About our valuers
The business valuers of Melbourne Property Valuers Metro each have well over 20 years of experience. They have helped businesses of all sizes including family-run small businesses, international franchises, and medium-sized entities.
Clients return to us for regular reports as we:
- Deliver reports in a timely manner
- Have given evidence in court including in the Federal Circuit Court of Australia
- Are well-regarded Chartered Practising Accountants (CPAs)
- Have excellent client support
Frequently Asked Questions
Q: How do you calculate the value of a business?
How the value of a company is calculated depends on the type of value, why the figure is needed and the method used by the valuer. One method is comparable transactions which uses the values of comparable companies to calculate value.
Q: What are the 3 ways to value a business?
The three most common ways to value a business are discounted cash flow, future maintainable earnings, and net-based asset methods. Each has its best use cases and aids a company or its investor in a variety of ways.
Q: Who can appraise the value of a business?
Business valuers are Chartered Practising Accountants (CPA). Their expertise allows them to comprehensively analyse an entity’s assets and finances to determine its worth and potential.
Contact our specialists
Get in touch with our dedicated business valuation team. No matter your size or industry, our specialists can help. Call us on (03) 9021 2007 or complete our contact form below. A team representative will respond as quickly as possible.