Buy-sell agreements are among the most important legal documents in a privately held business, but their real value depends on one critical issue, the price mechanism. From a business valuation perspective, an Australian buy-sell agreement only works properly when it sets out how the equity interests will be valued, when that valuation will be tested, […]
Business succession planning is only as sound as the valuation work that supports it. For Australian privately held businesses, the valuation is the reference point for buy-sell agreements, insurance funding, family transfers, shareholder exits, and tax-sensitive restructures. Without a defensible valuation, succession arrangements can create avoidable disputes, insurance shortfalls, CGT exposure, and unfair outcomes between […]
For Australian business owners preparing to go to market, the distinction between vendor due diligence and a business valuation is critical. A valuation determines market value using recognised valuation methodology, while vendor due diligence tests the quality of the financial and commercial information that prospective buyers will rely on. In many transactions, especially for privately […]
Management buy-ins and buy-outs are ownership transitions in which a business is acquired by existing or incoming senior management, and in Australia they are often shaped as much by valuation discipline as by funding structure. For privately held businesses, the key questions are not only who will own and lead the company, but what the […]
A valuation for bank and lender finance in Australia is a forward-looking assessment of what a privately held business is worth to a lending decision, not just what a vendor hopes to achieve in a sale. For acquisition or refinance funding, banks and non-bank lenders want evidence that the business can service debt, support security, […]
Employee share schemes and phantom equity can both help Australian SMEs retain key talent, but they are fundamentally different from a valuation perspective. An employee share scheme gives staff a direct or contingent ownership interest in the business, while phantom equity is usually a contractual right to receive a cash payment linked to the value […]
Scrip-for-scrip rollover is a CGT concession that can materially affect the valuation of a privately held business in an Australian merger or acquisition. Where shares in one company are exchanged for shares in another, the rollover may defer capital gains tax on the original shares, which can influence deal pricing, shareholder negotiations, and the comparative […]
The small business restructure rollover is a CGT mechanism that can defer capital gains tax when an Australian small business is reorganised, provided the transaction meets the legislative tests. For valuation purposes, it matters because the rollover does not remove the need to establish market value. In many restructures, a valuation engagement is needed to […]
Tax structuring can materially change the outcome of an Australian business sale, but from a valuation perspective the key issue is not simply how much tax is paid. It is how CGT, the small business CGT concessions, GST going-concern relief, and related structuring decisions affect the net proceeds to the owner, the risk profile of […]
Unresolved Division 7A loans can materially complicate a business sale because they affect normalised earnings, balance sheet quality, working capital assumptions, and the buyer’s confidence in the integrity of the financial statements. From a valuation perspective, a Division 7A issue is not just a tax compliance matter. It can alter the price a prudent buyer […]