A business valuation is the most reliable way of finding out the value of a company. The process is led by expert financial analysts with experience preparing certified valuation reports for all sorts of business sizes and types.
Knowing the worth of your organisation is vital in a number of circumstances. An independent business valuation in Darwin can give owners an informed point of view, allowing them to make smart financial decisions going forward.
The valuations are performed by senior business valuers with qualifications and experience in commercial accounting and financial management. As specialised experts, they have a comprehensive skillset that allows for a unique insight into the intricacies of business operations.
A certified business valuation from a qualified expert serves as conclusive proof of an organisation’s worth in the existing market conditions. Valuers have access to business valuation records and other existing public and private data that can be used in the assessment.
The report can stay valid for up to a year after the date of completion and can be hugely beneficial for all sorts of legal, private, and commercial negotiations and transactions.
How to look up a business valuation?
A company’s value can be estimated with one of the various available online tools. These services use automatic valuation models to make an estimation of the property’s worth in the current market.
Unfortunately, they do not have the same standard of reliability as independent and certified business valuation reports. If you want a precise and detailed analysis of your company’s worth, you’ll need to reach out to one of the several valuation firms in Darwin.
A business valuation firm can assign a qualified expert with the relevant experience to prepare a comprehensive report specifically designed to suit your needs. By meeting every regulatory and legislative requirement, these reports are accepted as valid in courts throughout the country.
As market conditions are subject to constant change, it’s important to get an up-to-date assessment of the company to know where it stands in existing conditions.
The crucial business valuation information
Valuers use a combination of different valuation methods when preparing the reports, and it’s important to ensure they have all of the necessary information for accurate calculations.
Getting all of the necessary documents prior to the valuer’s inspection and assessment is thus key. Some of the documents you’ll need to have on hand include:
Financial statements
A business valuer will likely need the last three to five years of financial records including the most recent period. These must include a balance sheet, cash flow statement, and income statement. This information can help the analyst get a clear idea of how the business is performing.
Tax returns
Information regarding the tax returns of a company should always be given to a valuer. Typically, they will need the tax data from the past two years.
Intellectual capital
The intellectual capital of a business is a supremely valuable intangible asset. These include goodwill, copyrights, trademarks, patents, and more.
Business forecasts and projections
Any cash flow forecasts or predictions on the business’s future earnings should be included as part of the information given to a valuer as it gives an idea of the projected income.
Loan agreements
Any agreements regarding the rental space and/or assets being loaned should be given to the valuer prior to the assessment.
Why get a business valuation?
A business valuation serves many purposes and can be useful for organisations of all shapes and sizes. With this independent service, owners can strategically plan for the future direction of their company.
A few of the most common reasons that companies request business valuations are:
- Tax planning
- Succession planning
- Pre-purchase or pre-sale guidance
- Settlement purposes
- Litigation purposes
- Exit planning strategy
- Family law and planning
- Future planning and forecasting
Valuers will use the key information regarding the business and perform meticulous calculations to reach figures that accurately represent the organisation’s worth in the existing market. Each report is drafted to suit the purpose of the report while remaining entirely objective and independent.
Summary
Anyone who owns a company will need a business valuation at some point. A valuation is the most trusted method of determining a company’s worth in the existing market.
A valuation is performed by a qualified expert with experience in commercial and management accounting. Experienced valuers will have the necessary know-how and unique insight needed to perform precise assessments.
Owners may find online business valuation tools helpful, but an independent valuation is a more accurate, accepted, and detailed method of finding a company’s value. An online valuation can merely serve as an estimate, while independent valuations are seen as conclusive proof of the value.
A business valuation can serve several purposes, from assisting with tax planning to helping out in divorce settlements. Each objective report is crafted to suit the client’s needs and written from an entirely independent perspective.
For more information on how to find a business valuation, contact us today and speak to one of our highly qualified experts.