Business Valuations Canberra
It’s important to regularly get your business valued, especially in this economic climate where conditions can rapidly change. A business valuation is an assessment of what your company is worth and could be a critical factor in helping you secure finances, attract investors, or sell the business on the open market.
Getting your company valued by a business valuation specialist can give you clarity and a comprehensive understanding of the entity’s strengths and weaknesses. This in turn can help you make business decisions that increase profitability and minimise risks and liabilities.
There are four different methods our business valuers use to find out how much your company is worth. These include:
- Asset valuation method This is based on calculating the value of the assets and then deducting any liabilities such as bank debts or payments.
- Capitalised earnings method This is where the valuer will review the average net profit for the past three years with a consideration of market conditions. The valuer then calculates the anticipated ROI and then divides the anticipated profit by the cost and works out the percentage. Afterwards, it will be multiplied by 100 to determine the value of the business.
- Earnings multiple method This is where different businesses are compared to each other and then the earnings before interest and tax are multiplied to generate a value.
- Comparable sales method This is the simplest method and involves reviewing recent sales of businesses in your sector and region.
Valuations ACT is a completely independent business valuation company in Canberra. We value entities in several sectors including, but not limited to:
- Hospitality and tourism
- Retail
- Accounting firms
- Transport businesses
- Medical practices
- Mining and mining-related businesses
- Insurance broker companies
- Wholesale trade businesses
- Manufacturing companies
- Building, construction, and engineering organisations
- Law firms
- Other professional service businesses
Before you arrange a business appraisal, you should prepare certain documents and relevant information including:
- Financial statements from the last five years including your latest tax return
- Details of assets such as physical and goodwill or intellectual property
- Legal documents such as leases, insurance policies, business name and ABN registrations, licenses, permits and any other compliance papers
- Business information including the market conditions (with an analysis of how you compare to your competitors), sales information, business history, business procedures (with marketing plans, rosters, and any other procedures), staff, supplier, and customer information
- Comprehensive information about wage, salary, and contractor expenses
Although this information helps our experts complete their business valuations, we understand that it’s not always possible. Our valuers have over 20 years of experience in conducting business valuations in Canberra. With their years of expertise, they can work with the information available.
Valuations ACT valuations are completed to a high standard and the finished reports are accepted by all government agencies and private companies. Our reports have also been submitted to various Australian courts including:
- Federal Court of Australia
- Federal Circuit Court of Australia
- Family Court of Australia
- ACT Supreme Court
- ACT Magistrates Court
- NSW Land and Environment Court
- Supreme Court of Queensland
- Family Court of Western Australia
- County Court of Victoria
Valuations ACT has a brilliant reputation for creating comprehensive and accurate valuation reports so you can be assured that you’re getting a high-quality valuation. To set up an inspection time, give our friendly team a call at (02) 6189 2232 or fill out the enquiry form.