We give you are a clear Understanding of the Value of your Business and the
TWO steps for you to achieve your desired or targeted Value.
We specialise in Business Valuation and Company Valuation ranging from small to large entities. Our valuations cover all sectors.
Recently over a period of three years for a Retail Wholesale Australian Share Fund licensed under ASIC we have selected the shares to invest in. This selection is based on our valuation and analysis of the Top 200 S&P ASX listed companies. Since inception the Fund was a top performer in the Australian market with returns in the high 20’s.
A key valuation technique which we also incorporated in the selection criteria for the Australian Share Fund mentioned above is that the value of any business is its Future Free Cash Flows discounted back to Present Value at a risk adjusted rate.
We hold strongly to this view and believe that it is invalid not to address the future period projections. Unfortunately we have seen a number of business valuations by other valuers that only look at past and current earnings (and some that only use averages) and ignore any future projections.
Certainly past and future earnings can give confidence to the future projected earnings. However it is important to also take into account future projected cash flows so long as they are realistic and can be supported. Obviously it is up to the vendor to substantiate future projections and naturally for the purchaser to evaluate these projections. For them to be ignored in any valuation report is remiss.
All business valuations are an opinion and based on a number of assumptions. We refer to our business valuation reports as intrinsic valuations as they are based on various listed assumptions. In our reports we also give a range of values based on different sets of key assumptions. The reason for this is to give as much and as clear an opinion on the underlying value of the business as possible. We believe that this then gives you a clearer picture of the underlying value and also narrows any discussion to specific areas.
Business and Company Valuations vary in time to complete and complexity and thus cost. Factors such as size and structure of business, industry, available past, current and future financial information including state of such information, and whether the valuation is for a parcel of shares or for total business. A basic range of prices is $5,000 to $7,000 with the price being set prior to any commencement. An important principle in our Valuation Methodology is to determine the sustainable cash flows into the future.
For information that we need before we can undertake your business valuation click on the following link to download the PDF File:
Valuation Business Initial Meeting Questionnaire
Pricing for your business valuation (POA) is available on application.
T:+618 8295 1546 and 0438 826 685
or Email: es@ecosol.com
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Please contact us if you want to discuss or require further information
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