Determining a reliable valuation requires more than just strong accounting knowledge. It requires professional judgement and discretion. Contrary to common belief, it is not about 'getting to a number'.The consequences of an unreliable business valuation could mean paying too much in a transaction, selling for too low, shareholder conflicts and disputes, legal cases (and the associated costs) and failed start-ups.
Getting around this means engaging with a valuations advisor that takes a structured approach, provides clear rationale behind assumptions, displays sound judgement, and considers more than one valuation methodology. They undertake their work with a deep understanding of your business's operating model and the industry in which it operates; deriving a reliable valuation estimate from which key decisions can be made with confidence. Be wary of those that emphasise a speedy turnaround or quick 'back of the hand' answers. You could be leaving large sums of money on the table.
From a local cafe chain, to a large listed telecommunications company - our valuations have enabled businesses to be bought, sold, or restructured; accounts to be properly recognised; and capex projects to be approved & implemented successfully.
"I was very happy with the professional valuation services provided. Samuel & Sonz was very professional and we received prompt and good services." - Business Broker, Sydney
Many situations require a valuation to be done. These are some of the situations that we have come across, which we can group into three categories:
1. Business valuations
- Business mergers, acquisitions or minority investments
- Business sales, carve-outs, or minority divestments
- Start ups seeking seed funding or Series A, B, etc.
- Succession planning and exit- Shareholder disputes, or divorce
- Compulsory acquisitions
- Business restructures as part of a turnaround strategy
2. Valuations for accounting
- Accounting for share based payments & options (AASB2)
- Purchase price allocations & goodwill (AASB3)
- Accounting for intangible assets (e.g. intellectual property) (AASB138)
- Impairment testing (AASB136)
- Accounting for assets held at market value (AASB 139/AAS 25)
3. Capital expenditure (capex) investment cases
- Growth capex projects for businesses looking to expand operating capacity
- Infrastructure projects (e.g. for Governments, or family offices)
Our experience providing independent valuations has covered a broad range of industries: