Buying a business is as much a valuation exercise as it is a commercial decision. For Australian buyers, the price you agree should be tested against maintainable earnings, cash flow quality, growth prospects, customer concentration, working capital needs, and the level of risk you are taking on. A disciplined valuation helps you avoid overpaying, structure […]
Buying a business in Sydney, or anywhere in Australia, is fundamentally a valuation exercise. A purchaser is not just buying revenue or goodwill, they are buying future cash flows, balance-sheet quality, customer retention, working capital discipline, and the risks attached to each of those factors. A sound valuation helps a buyer test whether the asking […]
Founder secondary sales, where an owner sells some of their existing shares rather than issuing new equity, are an important valuation event in Australia because they crystallise part of a business’s market value without changing the business itself in the same way as a full sale. For founders, investors, and advisers, the key question is […]
Valuing a business for an employee ownership transition in Australia requires more than a standard market multiple. Whether the transaction involves a management buy-in, a management buy-out, an employee share ownership plan, or a gradual transfer of ownership to key staff, the valuation must reflect the business’s maintainable earnings, growth outlook, control dynamics, and the […]
The R&D Tax Incentive can materially influence the valuation of an early-stage Australian company because it affects cash runway, reduces near-term funding needs, and can support a more credible growth pathway. For a business valuer, the incentive is not valued as a standalone tax benefit in isolation. Its significance lies in how it changes expected […]
For Australian startup founders, investors and advisers, a term sheet is not just a funding document, it is a roadmap to the economics that will ultimately shape enterprise value and, in many cases, the outcome of a future valuation engagement. Liquidation preferences, option pool sizing, anti-dilution protections, and control rights can materially affect the value […]
A down round occurs when a company raises capital at a valuation lower than the previous equity round, and it can have immediate consequences for founders, investors, and staff. For Australian business owners, the valuation impact is often more important than the funding mechanics themselves, because a down round can reset market expectations, affect dilution, […]
Employee share scheme (ESS) valuations are a critical part of how Australian startups grant equity, manage dilution, and support tax compliance. For privately held companies, the valuation of ESS interests is not simply an administrative step, it shapes the commercial terms of a grant, informs employee expectations, and underpins the market value evidence relied on […]
Cap table modelling is not just a financing exercise, it is a core valuation tool for Australian startups and privately held companies. A well-constructed capitalisation table shows how equity shifts through seed funding, later rounds, employee share scheme (ESS) pools, and converting notes, and it gives the valuer a clear basis to determine ownership percentages, […]
Pre-money and post-money valuation terms often appear in equity funding discussions, but for Australian founders they matter most because they shape dilution, investor return expectations and, ultimately, the assessed value of the business before and after new capital enters. When option pools are introduced or expanded as part of a transaction, the headline valuation can […]