Understanding the market, income, and asset approaches is fundamental to any business valuation under APES 225. These three approaches provide the framework a valuer uses to assess fair market value or market value for a privately held business, with the chosen method depending on the business model, financial profile, asset base, and purpose of the […]
Future maintainable earnings (FME) is the starting point for most private business valuation assignments in Australia. It is the valuer’s estimate of the earnings a normalised business can reasonably sustain going forward, after removing unusual, non-recurring, and owner-specific items from historical results. For SME owners, understanding how profits are normalised is critical because the value […]
Choosing a capitalisation multiple is one of the most important judgement calls in a business valuation of an Australian SME. The multiple converts maintainable earnings into value, so it reflects not just how much profit a business makes, but how reliable, transferable, and sustainable those earnings are. In practice, a well-supported multiple is built from […]
The capitalisation of Future Maintainable Earnings (FME) is one of the most widely used business valuation methods for Australian small and medium-sized enterprises (SMEs). In simple terms, it converts the earnings a business is expected to maintain into a value by applying an appropriate capitalisation multiple, which reflects risk, growth prospects, and the sustainability of […]
Valuing a veterinary practice in Australia requires more than a look at turnover or client lists. The real question is how much of the practice’s earnings are repeatable, how dependent the business is on its principal veterinarians, and how consolidation in the veterinary sector is influencing market benchmarks. For a business owner, buyer, lender, or […]
When a childcare centre owns its freehold property and also operates the childcare business, the two assets often have very different valuation drivers, risk profiles, and buyer markets. For Australian business owners, lenders, accountants, and prospective purchasers, it is essential to separate the value of the underlying property from the value of the operating business, […]
A gym and fitness business valuation in Australia requires more than a simple multiple of revenue. For privately held gyms, the quality of recurring membership income, churn, member retention, and the sustainability of the customer base are often the most important drivers of value. A valuer will assess whether earnings are genuinely recurring, how much […]
A valuation of a panel beating and auto repair business is not driven by workshop size alone. In a proper valuation engagement, the valuer tests how the business earns profit from licensed labour, repair equipment, insurer relationships, and the quality of recurring work. In Australia, these businesses often sit at the intersection of trade capability […]
An automotive dealership valuation in Australia is not simply a review of turnover or vehicle sales volume. A proper valuation considers the franchise agreement, the strength and portability of the parts and service operation, working capital requirements, and the outlook for electric vehicle adoption, all of which can materially affect maintainable earnings, risk, and ultimately […]
A caravan park and holiday park valuation is not just a review of land and buildings. It is a business valuation that must assess how the site mix, occupancy profile, revenue quality, operating performance, and underlying property assets combine to drive maintainable earnings and market value. For Australian owners, lenders, accountants, and potential buyers, the […]