You may require a business valuation report for the following reason(s):

• buying a business
• selling a Business
• family matters (including divorce and family settlements)
• litigation
• required by the solicitor
• required by the shareholders
• partnership dissolution
• work out capital gain tax component
• work out goodwill
• stamp duty
• business planning
• others

Being a professional business valuer, we feel that each business operates differently; they may belong to the same industry but running it differently. Each business has its own culture, clientele, suppliers and management style. There is no fixed method to value a business: each business has its own merits and benchmark. Several methods, factors need to be considered to value a business.

We may use one or a combination of the following methods or may add a few more methods to appraise a business:

• Based on sales
• Profit based valuation
• Asset based valuation
• Industry Benchmark
• Rule of thumb
• Comparable Sales method
• Capitalization of Future Maintainable Earnings (CFME)
• Calculating a business net worth
• Based on the business’s income or profits and the expected return on investment (ROI)
• Earning multiple
• Calculation of net assets on a going-concern basis.

Besides the above we will consider the factors such as:

• Age of the business
• Product
• IP (intellectual property) /brand, Social Media reviews
• Industry
• Customers (database)
• Suppliers
• Rent & Lease: Outgoings (included Body Corporation, Promotion and advertising expenses), Rates and business operating expenses.
• Staff wages and KPI, Owner wages (drawings) and their participation/hours in the business.
• Staff and Management skills.
• Business Assets i.e. Chattels / Equipment (owned) and worth of Intellectual properties.
• Business set up costs and fixtures.
• Business location, facelift, papulation, traffic, crossing main roads, Parking and distance from the Big Brands Stores / Retailers.
• License (s), Registrations and approvals (included: council, liquor etc.)
• Health and safety compliance.
• Seating Capacity (approved)
• Financials (Section 52), Profit and Loss and Balance Sheet and Cash Flow Projection) and Business Tax returns.
• Whether the Business will be sold as Going concern or GST applicable.
• If a business is a franchise, the franchise code of conduct, franchise agreement terms, renewal and expiry etc., targets and compliance.