Case Studies from Brisbane Business Valuation Clients
When a Business is Affected by a Divorce
A divorce is an exceptionally stressful time for anyone. It is especially true when a business is involved in the split. Even if the business is only owned by one of the former partners an impartial and professional business is essential.
The Team here at Brisbane Business Valuations are well versed in precisely this circumstance. All our Valuers have over 20 years’ experience and in this time, they have developed the proper skills to help you during this difficult time. You can rely on us to be understanding and helpful.
We treat each case as a unique situation because they are. Our service philosophy is built around care and understanding and that is why we have so many satisfied clients. During this stressful time, we can at the very least take this stress away when it comes to the purpose of your valuation.
Take John and Jane. These two have been married for many years but over the years they have grown apart. They both choose to settle out of court to avoid any unnecessary fees but to complicate the matter neither one can agree on what to value their business at. Both have built this business up from the beginning and believe that they know it's true value.
These are situations we thrive in. We proved a certified report that can put both parties' minds at rest. We use various sources of data and different methodologies to make sure that we calculate the correct value for your business. You can trust our professionalism and discretion to get you what you need, when you need it.
So, for clients like John and Jane we can take the pain out of this part of the divorce process. We know you have more important things to be worried about at a time like this, let us worry about this one.
Business Valuations for the purpose of a Will.
Formulation and enacting a Will can be stressful and complex. You might be dealing with the grief of losing a loved one or close friend or trying to work with those that have. Legal complexities can become overwhelming in the best of times let alone in the process of enacting a Will.
For example, Tom’s mother, Susan, has recently passed. Through years of struggle and hard work she created a successful catering business that is now to be passed on to her two children. Tom’s brother does not want to be a part of the business but thanks to Susan’s foresight the Will has stipulated that Tom can buy-out his brother's new share of the business.
But here is the difficult part. How much is that share worth? Both brothers had different ideas on the exact value, and this would affect the amount Tom needed to pay his brother. Both siblings were obviously already going through a hard time, dealing with the death of their mother, and didn’t need a possible point of disagreement.
This is where we shine. We always act as an unbiased and impartial authority. Our only goal is to work with you to find the true value of your business. Our detailed and certified valuation reports give you all you need to know about how we value a business and your outcome. Each of our valuers have over 20 years of experience in the field and can be trusted to give you the service you need.
So, in cases like Tom’s, we can provide a value that all can agree on. We can’t promise that both parties will like the value, but you can be sure that both can agree it's the right one.
Don't hesitate to give us a call today at (07) 3067 7233 or you can fill in the contact form.
Business Valuations and the Australian Tax Office
It can be difficult to understand if your business fits with the ATOs current regulations. The value of your business, plant or property can often be used as variables that the ATO needs to know. When you call on our valuers and there more than 20 years of experience with valuation for tax purposes you can be sure that the work we do is of the highest quality and will be accepted by the ATO.
Business Restructuring and the ATO
It might not always be clear when your business requires a business valuation. Many people are surprised that what seems like a very simple internal business restructuring can trigger an investigation by the ATO. In the 20 years that each of our valuers have been working in the field they have seen this happen all too often.
Take David and Sons, a medium size building company. David Snr. has decided that it is time to bring his sons more officially into the business. This required a restructuring of the business so that his two sons could become part owners.
David Snr. had worked hard with the two David Jr’s. over 15 years to achieve the high level of professionalism and quality that their customers rely on. After talking with his financial adviser David Snr. decided that he needed a business valuation to protect himself and his sons from any later taxes or fines from the ATO.
This is where we come in. We provide an exceptional service that has been proven trustable and more than sufficient for the ATO time and again. No matter your business type, we are the right team for you.
Business Valuations for a Small Business
The team at Brisbane Business Valuations have the experience necessary to value your business. Each of our valuers have over 20 years of experience in valuations and in that time have dealt with valuing business both big and small.
We know that many small businesses might seem unconventional. It doesn’t matter what your business is, it can be valued. With a range of methodologies, no matter the business type, we can help.
George ran a small business providing specialised makeup and instructions for clowns. He had been a practising clown and make-up artist for over 10 years and found that the regular range of makeup available in stores wasn’t suitable for a professional like himself. So, he started a business that provided clowns like him with what they needed.
George may have been a clown, but his business was no joke. He decided that he needed a valuation for tax purposes but was worried that his business would be too unusual to be valued or that he and his passion wouldn’t be taken seriously.
We are professionals here at Brisbane Business Valuations. Like you we take the work we do seriously and always provide a reliable result. Someone like George doesn’t need to worry about us. We can value your business and our team members approach each case with respect and professionalism.
Buying out a Former Partner
Ending a business relationship can be difficult, especially if the partnership has built up a business together. In these circumstances it is imperative that a value for the business can be agreed upon by both parties. During times like this one there are a range of different issues and problems. This is one problem that we can help with.
Each of our valuers have at least 20 years of experience in the field. We have proven that we can be trusted to perform the valuation you need in a professional manner. We use a range of methodologies to ensure that we provide you with the valuation report you need.
Johnson, De lotto, and Partners are a successful law firm in the heart of Brisbane. Mr. Johnson and De lotto each own 40% of the company's shares. Their two non-founding partners each held 10%.
One of their non-founding partners was leaving for another firm and Johnson, De lotto and partners needed to establish the value of their business so that they could buy out their former partner.
The leaving partner obviously wanted the business to be valued at as high a price as possible. Johnson and De lotto thought a lower value were more correct. To solve this issue, they needed an impartial review.
Brisbane Business Valuations are committed to a business valuation that stands outside of any bias. Our experienced and professional team of valuers produce a detailed report that goes through every pertinent piece of information about your business.
In examples like Johnson, De lotto and Partners we provide a service that can’t be beaten. We explain the process in clear and detailed language so there can be no doubts as to our process and trust ability of our reports.
So, reach out to us today at (07) 3067 7233 and we can begin your valuation process.
Patents and Valuations
We can put a value to all parts of a business. That means that our valuations don’t stop at your tangible assets and cash flow. Intangible assets like Goodwill, Patents, Brand Recognition, and trademarks are all vital parts of your business that our experienced team of valuers will take into account when determining the value of your business.
Patents can add a large amount of value to your business. Your business’ patent is important whether it is a new form of software to help doctors better personalise their care or a new design that has started a small revolution in safety ware.
There are many occasions when you might need to value your patent. Hopefully this scenario will help explain.
Harry had started ‘The Carpenter's Shed’ a woodworking business in his shed 10 years ago. Through years of passion and late nights he has managed to build up his business from making a few tables for friends to moving out of the shed and into a custom fitted warehouse.
Over years of tinkering Harry has devised a new method for fitting legs on the furniture. This method allows Harry and his growing staff to cut down on the time it takes to finish the pieces of furniture while not having to sacrifice the quality of what they make.
Realising that his new method of woodworking is sure to be valuable Harry has it patented to ensure that his innovation is protected.
Many other businesses are now interested in licensing Harry’s patent and some others are looking to purchasing it out right. To understand what route, he should take Harry knows that he needs to have his patented independently valued.
In this case we first need to determine the value of the patent. Our expert valuers determined the Enterprise Value of the business. Once this value has been calculated a simple deduction of all tangible assets will show the value of ‘The Carpenter’s Shed’ intangible assets.
The next step is where our experience is most important. The value of all the intangible assets must be separated into the values of each individual asset. This process is not straightforward and requires extensive knowledge and an experienced eye to perform.
After this Harry needs to know the value of licensing his patent. While a more straightforward process involving market approach many factors need to be considered before this value can be calculated.
From these two different valuations Harry can now confidently choose the right option for him.
The Effect of Owners Remuneration on a Business' Value
Many factors go into a business valuation. Most of the time these will be concerned with the business’ income and future performance.
This might at first look like a simple process, but in fact its rather complex. More than just adding up income over a section of years many valuations involve a more detailed and exact calculation.
One of the more common variables that must be considered involve the amount of money a business owner pays out to themselves as a salary. This salary cannot be treated in the same way as other employees of a business. A valuer must compare it to the market rate of the owner's position within the business before that business can be properly valued.
The following example will further explain this process.
Rachel is having her music supply store valued. Her salary of $30,000 must be compared against the market value of her position.
To determine this our valuer will look at what others in Rachel’s positions are being paid. Our expert team of independent valuers will take into consideration her experience, qualifications, responsibilities, and business' size to ensure that the salaries they are comparing to are the right ones.
This lets them determine what salary Rachel’s businesses would need to be paying in salary if she was not working in her position. From this information they can now move forward with the valuation process.
To simplify this example, we will say that our valuers have determined the market value of Rachel's position to be $50,000. Her businesses net income is $100,000 but this number must now be changed to reflect the difference in what she is paying herself as posed to the pay others in her position are making.
Depending on your business, its important to stay ahead of the industry, seek out one of our business valuers today at (07) 3067 7233 so we can help determine what service would best benefit your business-related purposes.