Working capital true-ups are a common but often underestimated feature of Australian business sales. In valuation terms, they matter because they directly affect the equity value a seller ultimately receives, the price a buyer is willing to pay, and the way a valuer translates enterprise value into sale proceeds. For privately held businesses, especially those […]
Customer concentration can materially affect business value because it changes the quality, reliability, and risk profile of future earnings. Where a private business relies on one customer, or a small group of customers, a valuer will usually assess whether those revenues are stable enough to support market multiples or a DCF-based valuation at the same […]
Comparable sales evidence is one of the most practical inputs in an Australian business valuation because it shows how real buyers and sellers have priced similar businesses in arm’s length transactions. For privately held businesses, especially SMEs, transaction evidence helps a valuer test assumptions, cross-check earnings multiples, and determine whether an indicated value is consistent […]
A partnership or shareholder dispute can change the value of a business more quickly than any market shift. In those situations, a valuation is not just an accounting exercise, it is the foundation for resolving exit prices, buyout rights, oppression claims, deadlock disputes, and unfair prejudice allegations. For Australian privately held businesses, a properly prepared […]
In family law property settlements, the valuation of a privately held business is often one of the most influential, and most contested, issues in the overall asset pool. For Australian business owners, the outcome can turn on how a business valuation is prepared, what level of market evidence is available, and whether the valuer applies […]
A shareholder buy-out is one of the most valuation-sensitive events in a privately held business. The price paid for the departing owner’s interest should reflect the business’s maintainable earnings, growth prospects, risk profile, and the rights attached to the shares or units being transferred. In an Australian valuation engagement, the question is not simply what […]
Earnouts are a common feature of Australian business sales where part of the purchase price is deferred and linked to future performance. For a business valuer, an earnout is not just a deal term, it is a pricing mechanism that can materially affect enterprise value, equity value, risk allocation, and the final consideration a seller […]
Plant and equipment can materially affect the value of an Australian business, but only when they are assessed correctly. For valuation purposes, the key distinction is between written-down value in the accounts and market value in a sale context. Written-down value reflects accounting depreciation, while market value reflects what a willing buyer would pay for […]
Key-person risk is one of the most common reasons a privately held Australian business is worth less than its headline revenue or earnings may suggest. In a business valuation, owner dependence is not a side issue, it directly affects maintainable earnings, forecast reliability, customer retention, key supplier relationships, and the discount a prudent buyer would […]
In Australian business sales, goodwill and going-concern value are often used interchangeably, but they are not the same thing in valuation terms. For owners, buyers, and advisors, the distinction matters because it affects how much of the sale price is supported by identifiable tangible and intangible assets, how the business is valued under APES 225, […]