Our clients make significant decisions based on the results of our valuation services and therefore we take great care when giving out an opinion and always provide written advice so that our clients can fully understand the basis for our opinion.

Our Valuations are an assessment of the market value of the business assets and relationships that would be transferred if the business was sold by private treaty on the open market under normal arrangements for businesses sold in Queensland, Australia as at the date of the valuation.

Market Value is defined by the International Valuation Standards Committee as:

"Market value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgably, prudently and without compulsion."
(International Valuation Standards; 2005; Seventh Edition, IVS 1, Market Value Basis of Valuation/Scope, p82)

There are numerous documented methodologies that can be applied to business valuation.  While we often use multiple methodologies in a valuation, we tend to rely on the following two approaches:

• Capitalisation of Earnings
• Net Asset Value

Each approach uses a subjective component (usually the multiple or cap rate) and an objective component (usually the historical earnings and asset value)