Business Valuations

In any economic climate it is wise to know what financial position your business is in. To understand the financial position of the business it’s worth getting a professional business valuer to inspect your business. A professional business valuer will bring with them a wealth of knowledge and skills to accurately value your business. An accurate property valuation can be critical when your bank or lender is deciding whether or not to increase your finance facility, when you’re trying to entice new investors and if you’re selling the business.

A professional business valuation can give you a clear picture of what the business’s strengths and weaknesses are. You might discover things that you previously didn’t know about your business and so you’ll be able to make decisions based on the new information that has come to light. These decisions could help you increase your business revenue, whilst at the same time minimising your business risks and liabilities. This could see you increase the value of your business and secure your financial future.

Our valuers will use one of four valuation methods to determine the total value of your business: 1. Asset valuation method which is based on adding up the value of all the assets and then deducting any liabilities such as debts or other payments (such as insurance). 2. Capitalised earning method which involves a review of the average net profit for the last three years and then considers that in relation to the current market condition. The valuer will then determine the anticipated ROI and will divide the expected profit by the cost and comes up with a percentage. The percentage is then multiplied by 100 to assess the value of the business. 3. Earnings multiple method is where different your business will be compared to other businesses. The earnings before interest and tax will then be multiplied to ascertain a value. 4. Comparable sales method which is simply where we review recent business sales in your area and region.

NT Valuers takes pride in our independence and we are have expertise in a variety of industries including, but not limited to: Accounting and finance; Building, construction and engineering; Hospitality and tourism; Insurance brokerages; Law firms; Manufacturing companies; Medical practices; Mining and resource companies; Transport companies; Wholesale trade businesses.

Before organising your business valuation you should get all the documents prepared so our valuers can accurately value your business. These documents should include: A list of all the assets the business holds including physical assets and goodwill or intellectual property; Business details including the market conditions (with an analysis or how you’re going in comparison to your competitors), sales records, business history and business procedures (with your marketing plans, staffing rosters and any other important procedures), staff (including contractors), supplier and customer information; Comprehensive wage, salary and contractor expense records.

Whilst having this information makes the job easier for our business valuers, we understand that it’s not always possible for you to supply the information. As our valuers have more than 20 years of business valuation experience they can work with the information you’re able to provide them.

Every business valuation that NT Valuers completes will be undertaken to the highest standard so they are accepted by every government agency as well as private companies.

Our valuation reports have also been submitted to many Australian courts such as: ACT Supreme Court; ACT Magistrates Court; Federal Court of Australia; Federal Circuit Court of Australia; Family Court of Australia; NSW Supreme Court; NSW District Court; NSW Land and Environment Court; Supreme Court of Queensland; Family Court of Western Australia; County Court of Victoria.

NT Valuers has established an excellent reputation of preparing detailed and reliable valuation reports. To organise a valuation call our friendly staff on (08) 8911 1505.