Understanding the Business Valuation Process
Many business owners, accountants and solicitors ask the same question — “How does the business valuation process actually work?”
At BRV Business Valuations, we follow a structured and commercially focused valuation process designed to provide independent, clear and defensible valuation advice tailored to the specific circumstances of each engagement.
Whether the valuation is required for:
- business sales
- family law matters
- taxation purposes
- shareholder disputes
- restructuring
- succession planning
- estate planning
our valuation process is designed to ensure professional and reliable outcomes.
For broader information regarding our valuation expertise, visit:
Step 1 – Initial Consultation
The first stage of the valuation process involves understanding:
- the purpose of the valuation
- the relevant entity structure
- ownership arrangements
- industry characteristics
- historical performance
- key commercial risks
This initial discussion helps determine the scope of work, valuation methodology and information required.
We regularly assist clients requiring valuations for:
- Family Law Valuations
- Business Valuation for Change of Entity
- Professional Practice Valuations
Step 2 – Financial Information Review
The next stage involves detailed analysis of available financial information including:
- profit and loss statements
- balance sheets
- tax returns
- management accounts
- payroll information
- lease agreements
- customer concentration
- industry data
During this stage we assess:
- maintainable earnings
- owner involvement
- unusual or non-commercial expenses
- business sustainability
- profitability trends
Where appropriate, adjustments may be made to reflect the true commercial earning capacity of the business.
Step 3 – Business & Industry Analysis
No two businesses are identical. Industry conditions, competitive pressures and operational risk can significantly influence business value.
Our valuation process includes consideration of:
- industry outlook
- market conditions
- goodwill strength
- management depth
- customer dependency
- future growth prospects
- operational systems
- key person reliance
We have experience across a wide range of industries including:
Step 4 – Selection of Valuation Methodology
A professional valuation requires selection of the most appropriate methodology based on the characteristics of the business.
Common methodologies include:
- Capitalisation of Future Maintainable Earnings
- Discounted Cash Flow Analysis
- Net Tangible Assets
- Market-Based Approaches
The chosen methodology depends on:
- profitability
- business structure
- asset intensity
- future growth expectations
- industry norms
- reliability of earnings
Business valuation is not simply applying a multiple. A proper valuation requires careful commercial judgement and professional analysis.
If you are uncertain about the value of your business, our page:
provides additional guidance.
Step 5 – Preparation of the Valuation Report
Following analysis and valuation assessment, a detailed written report is prepared outlining:
- background information
- financial analysis
- assumptions adopted
- valuation methodology
- industry considerations
- valuation calculations
- conclusions reached
Our reports are prepared independently and professionally for use by:
- business owners
- accountants
- solicitors
- courts
- family law practitioners
- taxation advisers
- financial institutions
Why an Independent Valuation Process Matters
An experienced and independent valuation process helps ensure:
- credibility
- objectivity
- defensible conclusions
- commercially realistic outcomes
- compliance with professional standards
A properly prepared valuation report can significantly assist decision-making, dispute resolution and commercial negotiations.
Why Choose BRV Business Valuations?
Since 1986
Extensive experience advising Australian businesses and professional advisers.
Independent Advice
Objective valuation reports tailored to each engagement.
Commercially Focused
Practical and realistic valuation analysis.
Australia Wide Service
Advising metropolitan and regional clients throughout Australia.
Confidential & Professional
Sensitive commercial information handled professionally and discreetly.
Speak With an Experienced Business Valuer
If you would like to discuss the business valuation process or require an independent valuation report, contact Lee Goldstein at BRV Business Valuations.
Call 0414 252 032 for a confidential discussion.