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Business Valuation

How does a business valuation work?

Your Succession Plus Accredited Adviser will undertake a thorough analysis of your business from a buyer’s perspective, identifying gaps that may prevent you from maximising your return.

After an initial fact-finding mission and collating financials, a comprehensive valuation usually takes around two weeks to deliver. Our process has minimal impact on staff during the review so business can continue as usual.

 

What you receive:

  • A comprehensive and clear 65-page report
  • Clarity on how you stack up against industry benchmarks
  • 3-hour workshop to identify business priorities
  • Recommendations on what to address to increase your business value

More than simply a valuation, your 65-page report will highlight unmanaged risk and recommend options to help maximise your business value in the near- and long-term.

If you want to understand how market, income and asset-based valuations work, we’ve prepared the Demystifying Business Valuations Guide. It’s free, so get your copy below to read at a time that suits you.

Get the Guide

Our valuations also identify the risks that reduce value.

In our experience it is unmanaged risk that most often makes a potential buyer walk away. It’s these same risks that probably keep you up at night. The good news is there’s no risk we haven’t seen before and nothing that can’t be resolved with the right step-by-step process.

  • Reliance On Key Personnel
  • Expensive Revenue
  • A Mismatch In Management
  • Underinsurance
  • Un-systematised Work Processes
  • Poor Technology
  • Lack Of Documentation
  • Sick Finances

Read more about the six causes of business devaluation and how to avoid them in our guide here.

Read: how to avoid business devaluation

Getting a valuation to sell or exit?

Many business owners make the mistake of going to market and taking their foot off the accelerator. Our advice is to carry on business as though you were still going to be at the helm in five years. If you’re keen to improve your valuation, our Five-Stage Succession Process can help you target risk areas step-by-step, even if you exit earlier.

BENEFITS

Business Valuation Service Benefits

Easy

Our unique process is designed to provide you with an accurate assessment of your business performance and value, while not significantly affecting your day-to-day operations in the process.

Thorough

We will examine financial aspects of the business as well as quantifying non-financial and operational issues. Planning derived from the valuation is created based on the personal goals of the business owner.

Tailored

We will design a valuation model to accurately assess the business and outline the best way to address key issues including tax planning, risk management, and exit readiness.

Practical

A Succession Plus valuation that meets the requirements of APES 225 can be relied upon for calculating equity for capital gains tax, IP value, and in stakeholder disputes. Note that valuations do not constitute an audit procedure for general business tax purposes.

Frequently Asked Questions on Business Valuation

  • What is a business valuation?

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  • How do you value a business?

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  • What business valuation method should I use – EBITDA or NOPAT?

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  • When should I get a business valuation?

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  • Should I get a business valuation before I sell my business?

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  • What is included in a business valuation?

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  • How long does a business valuation take?

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  • What is the difference between a business valuation and a business appraisal?

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  • What is goodwill?

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  • How do you calculate goodwill in a business?

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