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Company & Business Valuations
Expert company & business valuation services backed by industry experience
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Groves & Partners offer a range of company and business valuation services to provide accurate and reliable valuation assessments to a diverse range of clients in all industries.
We prepare company and business valuation advice for most circumstances, including:
- Mergers and acquisitions
- Litigation requirements during family law matters, shareholder disputes or succession planning
- Taxation and financial reporting requirements
- Business or company restructuring
- Internal management decision making needs
We are experienced Chartered Accountants and Registered Business Valuers who specialise in providing expert company and business valuation reports. We have appeared in courts throughout Australia as expert witnesses for business and company valuations. We are committed to providing our clients with the highest quality valuation assessments and guidance. We also take pride in our reputation for excellence within the industry for producing reliable, useful and easy-to-understand business and company valuations with short notice.
Our expert valuations deliver an objective and independent assessment of a business or company’s worth. Groves & Partners is highly regarded for our practical and clear business appraisal advice. Most of our business and company valuation clients are referred to us by accountants, lawyers and other professional advisors.
Our Company & Business Valuation Process
All businesses and companies are unique. Our valuation methods are tailored in consideration of the unique nature of your specific business, its industry, risks, stakeholders, purpose of valuation, financial performance and market conditions.
Our typical process is outlined below:
1. Initial no-cost review
We commence by reviewing information regarding the business and/or company to the extent that this is available. In doing so, we will often review documents such as financial statements, the subject business’ marketing collateral, and prepare an addback schedule to understand business performance. This review allows us to make an early determination of the nature of investigations we will need to undertake, as well as to understand the technical approaches required in valuing the business or company.
2. Confirm scope of engagement and advise professional fees
Following the conduct of our initial review, we will advise you of our professional fees to undertake business valuations, and the scope of our engagement.
3. Data and information request
We prepare a thorough information and data request schedule to enable an accurate valuation of your business and/or company. This data request is typically tailored to lessen the stress and the pressure involved when our clients gather their data.
4. Initial data and information review
We review the data and information provided in response to our information and data request schedule. We then conduct technical analysis, and review any additional data or information required to complete our business valuation services.
5. Business valuation report preparation
We will provide you with a report presenting our expert evaluation of the value of the business and/or company. The report will clearly advise the key risks inherent in the business. This includes for example, consideration of the industry, nature of the business, client concentration, and future and historical financial performance. We also provide comprehensive explanations to provide reasoning for selecting specific business valuation methods, and our calculation of value derived from the valuation method.
6. Meetings with you and your advisors
We typically conduct regular meetings with you and your other professional advisors, such as your accountants and lawyers. This is to provide time-sensitive advice regarding the nature of the business and the proposed valuation. We are committed to maintaining ongoing communication and engagement with our clients.
FAQs
How is the value of a business determined?
The value of a business is determined through a combination of financial analysis, market research and industry benchmarks. Factors such as the company’s revenue, assets, liabilities, cash flow and growth potential are considered in the valuation process. Our valuation reports cover all components, which derive the value for the business or the company.
What are the different methods for valuing a business?
There are several valuation methods that can be used to determine the value of a business. The most commonly used methods include:
- Income-based approach: Estimates the value of a business based on the income it generates. It takes into account the future cash flow projections of the business, the risks associated with the business, and the time value of money.
- Market-based approach: Estimates the value of a business by comparing it to similar businesses that have recently sold in the market. This approach requires access to data on similar business transactions, and it takes into account the market conditions at the time of the transaction.
- Asset-based approach: Estimates the value of a business by adding up the fair market value of its assets and subtracting its liabilities. This approach is often used for businesses that own significant tangible assets, such as real estate or heavy machinery.
Which valuation method do you use in valuing my business?
Here at Groves & Partners, we use our years of industry experience and expertise to determine the most appropriate valuation method for your specific business and situation. The selection of the appropriate valuation methodology will also depend on a number of factors. This includes the nature of the business, its financial and operational performance, availability of information and data, purpose of valuation, and the availability of comparable transactions or market data.
What can I do to increase the value of my business?
Our business valuation reports offer a detailed understanding of the value of your business or company. It includes a thorough explanation of the factors that affect its value, such as profitability, costs, revenue, brand and reputation, and growth strategies. Typically, by improving these aspects, you can increase the value of your business. To assist you in enhancing your business value, Groves & Partners also provides Business Value Improvement Advisory Services. We can help you find the most effective solutions and plan for increasing the value of your unique business.
How long does a company valuation take?
The duration required for business valuations depends on several factors. This includes the size and complexity of the business, and the purpose of the valuation. A straightforward valuation may take a few days, while a more complex one could take several weeks. Delays may occur when information or instructions are not promptly provided. However, we pride ourselves on delivering business and company valuations promptly, even with short notice. Our team maintains regular communication with clients, and provides support throughout the entire process.
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