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Business Valuation: Insights and Innovations for 2024

Business Value Acceleration

Business Valuation: Insights and Innovations for 2024

By , June 13, 2024
business valuation

The latest research on business valuation multiples highlights several key insights:

In summary, while valuation multiples such as profit, (we normally use NOPAT – check out why here) or in some industries revenue, are widely used and provide a quick way to assess company value, recent research advises caution. It’s important to understand the underlying assumptions and potential biases that can arise from an uncritical application of these multiples. Analysts are encouraged to complement multiples with a thorough analysis of a company’s fundamentals to achieve a more accurate valuation.

Our Capitaliz software analyses nearly 100 non-financial metrics as part of the algorithm to determine the valuation – these lead to an assessment of growth, risk, predicted cash flow performance and ultimately the likelihood of future returns. These metrics are accompanied by detailed analysis of industry benchmarks, used to identify over and under-performance, as well as industry trends and related risk. This then allows us to remove some of the bias and create a reliable valuation model for any business in any industry. This model is used in eight countries around the world and is becoming the benchmark standard for business valuation.

Craig West

Craig West

Executive Chairman | Succession Plus

Craig West is a strategic accountant with over 20 years of experience advising business owners. His background as a CPA in public practice has provided invaluable experience in the key issues of concern to business owners.

In March 2014, Craig was appointed Executive Chairman of the SME Association of Australia, Australia’s largest small business organisation representing over 300,000 business owners.

In October 2014, he was awarded the Exit Planner of the Year at the Exit Planning Institute Annual Conference in Texas, USA, due to his innovative development of an exit planning process to help business owners maximise business value and achieve a successful exit.

Craig’s proprietary structure - a Peak Performance Trust - has won the Australia-wide award for the Employee Share Ownership Plan of the year twice in four years.

In November 2018, Craig launched SME Experts in partnership with Mark Bouris’ Mentored on Podcast One and quickly grew the monthly podcast audience to over 26,500 downloads; in October 2019, he released a new podcast focused on medium-sized businesses - Mid-Market Matters.

In July 2021, Craig joined the NSW Committee for STEP (Society of Trust & Estate Practitioners) – focusing on advising families across generations.

Craig has also launched a SaaS platform, Capitaliz (which captures the 21-step process), to assist other advisers internationally deliver advisory services at scale.

In November 2021, Craig was appointed Executive Chairman of NSW Leaders, a business mentoring group for leading NSW businesses.

In July 2022, Craig West received the award of Doctor of Business Administration for his research thesis titled “Examination of the key factors driving business exit options in Australian Small and Medium Enterprises.”

Craig is passionate about encouraging business owners to think strategically, maximise the value of their business and achieve a successful exit.

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