Business Valuation · Partner buyouts
Buying Out Your Business Partner?
An independent valuation can help establish what the shares may be worth and identify the financial issues affecting the buyout.
- A value for the interest changing hands
- Loan accounts and drawings reconciled
- Can act for one side or both jointly
What we do
We value the interest being bought or sold, applying the basis and any formula set out in your shareholder or partnership agreement.
Where the parties disagree, we set out the key assumptions clearly so the difference can be narrowed and discussed on evidence rather than position.
We can act for one party or, where both agree, as a jointly appointed independent valuer.
Issues that often complicate the work
What the agreement says
Many shareholder agreements set a valuation basis, a date, or a rule about minority discounts. These terms can matter as much as the numbers.
Maintainable earnings
Partners often draw different salaries, or none. Earnings need to be normalised so the value is not distorted by how profits have been paid out.
Goodwill tied to the departing partner
If clients follow the departing partner, the remaining business may be worth less to the buyer. We assess what goodwill stays.
Loans and drawings
Partner loan accounts, unpaid entitlements and personal expenses through the business affect what is actually owed on settlement.
Minority or control
Whether a discount applies to a minority interest depends on the agreement, the purpose and the basis of value adopted.
Our approach
- Read the ownership documents first and confirm the basis of value with you, and with your lawyer where one is involved.
- Normalise earnings and reconcile loan accounts and drawings to the settlement date.
- Value the business, then the specific interest, and explain each adjustment.
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
- EnquiryTell us about the matter by phone or through the enquiry form.
- Conflict and scope checkWe confirm we can act independently and agree what needs to be answered.
- RecordsYou provide the records we need through a secure link.
- Analysis and deliverableWe complete the work and explain the findings before finalising.
Fees and timing
Most buyout valuations are offered with a clear scope and a fixed fee, confirmed after an initial look at the agreement and the financial statements.
Questions we are often asked
Can one valuer act for both partners?
Yes, if both parties agree to a joint engagement and the terms of independence are set out in writing. This often saves cost and time.
What if our agreement has a valuation formula?
We apply it as written and, if asked, explain where it produces a result that differs from market value. Interpretation of the agreement itself is a legal question for your lawyer.
Does a minority discount always apply?
No. It depends on the agreement, the purpose of the valuation and the basis of value. We state which approach we adopted and why.
Discuss your business valuation
A short conversation is usually enough to tell whether we can help and what the work would involve.
