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 […]
A valuation in the Northern Territory has the same core principles as anywhere else in Australia, but the business mix can be very different, and that matters. Defence-linked contracts, resource services, remote operations, tourism exposure, logistics, and owner-managed trading businesses all present distinct risk profiles, cash flow patterns, and capital intensity. For business owners, buyers, […]
Business valuation in the Australian Capital Territory often centres on two influential market segments, government contracting and professional services. For owners in these sectors, a valuation is rarely just a compliance exercise. It is a structured assessment of economic value that can support succession planning, buy-sell decisions, family law matters, taxation planning, refinancing, capital raising, […]