Selling a business
An independent valuation before you go to market helps you set a realistic price, understand what a buyer will question, and negotiate from evidence.
Business Valuation
Independent Business Valuations in Melbourne
A clear, reasoned opinion of what a business or shareholding is worth, prepared for the decision or dispute in front of you.
- An independent value for your business or shares
- A written report showing method, numbers and judgements
- Clear scope and fixed fee, agreed before work starts
What we do
We value private businesses, shares and partnership interests for owners, buyers, investors, lawyers and accountants.
Each valuation starts with the purpose. A value for a sale negotiation, a partner buyout, a family law matter or a restructure can rest on different assumptions, and the report needs to say which ones were used and why.
You receive a written valuation that sets out the method, the earnings and assets relied on, the key judgements, and what would change the result.
Common situations
Partner buyouts
An independent valuation can help establish what the shares may be worth and identify the financial issues affecting the buyout.
Inviting investment
An independent valuation helps you decide how much of the business to offer, and gives you evidence to support your price when the investor pushes back.
Planning retirement
Knowing what your business is worth today, and what a successor could realistically pay, is the starting point for a retirement plan that works.
Separation and family law
Independent valuations of businesses, shares and trust interests for property settlements, prepared so both parties and the court can follow the reasoning.
ATO and CGT requirements
Market value support for restructures, rollovers, transfers between related parties and capital gains tax calculations.
Shareholder interest disputes
When shareholders cannot agree on what an interest is worth, an independent valuation gives the parties, their lawyers and if needed the court a reasoned figure to work from.
Buy-sell agreements
A buy-sell agreement only works if the value it uses is realistic. An independent valuation helps owners agree a figure or formula, and set insurance cover at the right level.
What usually drives the number
Maintainable earnings
Reported profit often includes one-off items, owner salaries set for tax rather than market rates, and related-party costs. We normalise these so the earnings reflect what a new owner could expect.
Owner reliance
If customers, suppliers or key know-how sit with one person, some of the goodwill may not transfer. We test how much value depends on the current owner.
Assets, debt and working capital
Surplus assets, loans to and from owners, and unusual working capital levels can move the equity value well away from the headline enterprise value.
Basis of value and interest being valued
Market value, fair value and value to a particular buyer are different questions. A minority shareholding may also be worth less per share than a controlling one.
Our approach
- Confirm the purpose, valuation date, interest being valued and basis of value before work starts.
- Review financial statements, management accounts, tax returns and the ownership documents.
- Normalise earnings and test their sustainability against the business's history and its market.
- Apply the method that suits the business, usually capitalised maintainable earnings, net assets or discounted cash flow, with a cross-check.
- Explain the judgements in plain English so the reader can follow how the value was reached.
A valuation is an opinion at a stated date, based on the information provided and the assumptions disclosed. We do not guarantee a sale price or a court outcome.
Principal
Principal
Erin Huang, CPA
Principal, Maxwind
Erin is the principal of Maxwind Analytics. Her background combines corporate finance, building and running businesses, and specialist valuation and forensic work.
Maxwind Analytics has advised Melbourne businesses and their advisers since 2020.
About ErinHow the engagement works
- Initial discussionTell us what is happening and why a value is needed. We confirm whether we are the right fit and check for conflicts.
- Scope and quoteWe agree the purpose, the interest being valued, the form of report and a fee.
- Records and questionsYou provide records through a secure link. We follow up on gaps and meet management where useful.
- Analysis and reportWe prepare the valuation and walk you through the conclusions before the report is finalised.
Fees and timing
Most valuations are offered with a clear scope and a fixed fee, agreed after a quick look at the records. The fee depends on the purpose, the business and the type of report. A short report for an owner's decision costs far less than a court-ready expert report.
Questions people ask
When should an accountant bring in a valuation or forensic specialist?
Bring in a specialist when a client needs an independent opinion that others will rely on or test, such as a valuation for a dispute, buyout or related-party transaction, or analysis of missing funds or a loss claim. Independence and report standards matter most in these matters.
Read the full answerCan an incorrect business valuation cost you the small business CGT concessions?
Yes. One way to qualify for the small business CGT concessions is the $6 million maximum net asset value test. If goodwill or other assets are understated and the true figure exceeds $6 million, you may fail that test, and the concessions could be denied if the ATO reviews it. A supportable valuation protects your position.
Read the full answerQuestions we are often asked
How long does a business valuation take?
Most valuations take two to six weeks once we have the records. Matters with incomplete records, several entities or court deadlines are scheduled individually.
Do I need a valuation if I already have an offer?
An independent valuation tells you whether the offer is within a reasonable range and which parts of the business are driving it. It is often most useful before you negotiate.
Can you value a minority shareholding?
Yes. We consider the rights attached to the shares, any shareholder agreement, and whether a discount for lack of control or marketability is appropriate for the purpose.
Discuss your business valuation
A short conversation is usually enough to tell whether we can help and what the work would involve.
