What are business valuation firms?
In Queensland, business valuation firms can be crucial to the economy. They provide significant value to businesses, investors and other stakeholders in various key ways. These centre around establishing the market worth of companies. This is used for mergers and acquisitions, financial reporting, tax purposes, dispute resolution, strategic decision-making and more.
Business valuation companies in Brisbane look at entities in terms of:
- financial performance
- market conditions
- industry trends
- future growth prospects.
Moreover, business valuation firms help establish fair and transparent transactions. In mergers and acquisitions, for instance, these firms ensure that both buyers and sellers receive equitable outcomes by determining a fair market value.
This fosters trust and reduces the risk of disputes arising from subjective valuations. It also contributes to the overall efficiency of the financial system.
To assist this, business valuation companies are multi-disciplined institutions that rely on various kinds of technologies and professionals. For starters, they employ licensed valuers with qualifications such as Chartered Practising Accountant (CPA) or Chartered Business Valuator (CBV) certifications.
They also devote a significant amount of resources to financial analysis and industry specialisation to make sure they can account for clients in a wide range of industries.
Finally, they include sizeable research and support teams for gathering relevant data, tracking industry developments, overseeing due diligence, handling administration and project management and utilising advanced valuation software, databases and modelling tools.
Why you need a business valuation expert
There are many reasons why companies in Queensland work with qualified business valuation specialists. Suitable firms come with decades of combined experience accurately calculating the value of various businesses. They are certified accountants backed by expertise in the property market.
These valuations are designed to be entirely objective. Valuers in no way benefit from the final results of a valuation and so only look to establish fair market value.
A completed business valuation report includes a:
- thorough strength and risks analysis of the company
- detailed descriptions of the methods used throughout the investigation
- statement of true market value
- an in-depth summary of the above results
- comprehensive appendices including comparable and normalisation calculations, findings and tables used across the process.
Developing these reports requires strict attention to detail and a focus on forensic accounting practices. Their unique qualifications and expertise allow qualified valuers to take a microscope to every aspect of a business’s operations and performance to uncover its value.
Such a valuation can be conducted no matter the organisation’s performance. Companies undergoing expansion are just as in need of valuations as those struggling to perform or unlikely to turn a profit.
What is the purpose of working with business valuation companies?
Business owners seek out valuations for the quality and utility of their services. Calculating a business’s value can be used for much more than just buying and selling.
No other service boasts the requisite combination of skill sets required to analyse a company’s place in the larger market and deliver a statement of value specific to its industry. Business valuers are equipped to access the most humble operations as well as multi-million-dollar earners with the same levels of accuracy, honesty and integrity.
Valuations reports can assist with a range of purposes including:
- family, exit and succession planning
- litigation, deceased estate, probate, settlements and other legal matters
- calculating a company’s tax obligations or disputing taxes.
This is why every valuation report is different. They are fully customised to the client’s needs and work to achieve different ends for different purposes. Everything from the format of the report to the language used and the overall content is liable to change depending on the client’s needs.
When done correctly, these reports can be safely admitted to courts across the country. They are legally certified and recognised as accurate and objective. It’s for this reason that clients in every industry trust business valuers to help drive critical decision-making.
Business vs real estate valuation companies
Business valuation companies are often compared to the more commonly talked about real estate valuation firms. Of course, the primary difference is that the former values enterprises, while the latter is focused on residential, commercial and industrial real estate.
Business valuation is more concerned with an organisation’s intellectual property, brand value, customer base and future earnings potential than the condition and general desirability of any buildings under their ownership, though this is also a relevant consideration in most cases.
Both fields are highly regulated to ensure accuracy and transparency.
This is even more vital when serving investors, entrepreneurs and corporate entities involved in mergers and acquisitions, internal restructuring, shareholder disputes or financial reporting.
Ultimately, the true value of either company is in helping key stakeholders make informed decisions about their assets. In business valuation, this simply includes a far wider range of potential assets, as well as industry-specific considerations, customer goodwill and market positioning.
Summary
Business valuation companies play an essential role across practically every industry. Their services represent the single most dependable avenue for businesses to calculate their market value for numerous reasons. With a business valuer by their side, companies can effectively plan for the future, gauge their performance, make sound investments and pay the right amount of tax.
Licensed, independent business valuers are specialised in numerous industries and their services are known to be accurate, transparent and honest. These multifaceted professionals are experienced in everything from small start-ups to large national chains.
If you’d like to learn more about how a valuation can help your business, contact one of our certified valuers today.