Business & Shares Valuation Services

Business and Shares Valuation

Are you a business owner looking to understand the true value of your company? Or an investor seeking accurate share valuation information?

Verus Accountants, a leading business valuation firm in Sydney, is here to assist. Our team of expert business valuation accountants specialises in providing comprehensive business valuation services tailored to meet your specific needs. With our expertise and experience, we can help you understand the true worth of your business or company shares.

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Understanding Business Valuations

Business valuations play a pivotal role in a range of business applications. By understanding the value of your business, you can gain insight to improve your business’s overall health and well-being.

A well-executed business valuation is crucial for:

Mergers and acquisitions
Partnerships
Shareholder disputes
Taxes
Business planning
Financial planning
Estate planning
Exit strategy planning
Asset management

Chartered Accountants for Business Valuations

Chartered Accountants have higher qualifications and deeper experience with businesses that give them the expertise to provide accounting services for businesses that take the big picture in mind.

At Verus Accountants, we only employ the most qualified Chartered Accountants. As our team carries with us a diverse range of experience, we’re able to anticipate the needs of our clients to provide thorough and holistic business valuation reports.

Unlocking the Value of Company Shares

If you’re a shareholder, whether in a public or private company, knowing the value of your shares is paramount. Share valuation determines the worth of your investment and can impact decisions such as buying or selling shares, equity dilution, or calculating returns on investment. Our accountants possess in-depth knowledge of share valuation methodologies, including market multiples, discounted cash flow analysis, and comparative analysis.

Whether you’re an individual investor, a corporate entity, or part of an employee stock ownership plan (ESOP), our team at Verus Accountants is skilled at conducting accurate and reliable share valuations. We consider various factors such as company financials, industry performance, market conditions, and regulatory frameworks to determine the fair value of your company’s stock.

How Does Verus Conduct Your Market Value Of Shares?

No valuation case is the same. It’s essential to make use of comprehensive business valuation services that consider your business’soperational structure, stakeholder expectations, and long-term strategic plans of the company.

At Verus, we consider all elements to collate insights into your business to build a valuation approach that best maximises your share values. We can provide the following:

Retirement and introduction of Stakeholders in a Business
Marriage Breakdowns
Business Restructures
Net Asset Valuations
Tax Compliance such as Capital Gains and Stamp Duty
Related Party Transactions
Shareholder Disputes

Benefits of a Business Share Valuation

We are not your average accountant who is likely to give you a “back of a notepad” valuation which is expected to be inaccurate and misleading. Our comprehensive services can deliver the following advantages

Gain Understanding Of Your Company’s Assets

It is essential to gain an accurate business assessment. We can help you obtain specific numbers from our valuation processes so that you (as a business owner) obtain the correct insurance coverage, and know precisely how much to reinvest and how much to sell your business so you can gain a profit.

Understand Your Resale Value

Selling your business? Then understanding its worth and how it's valued is critical. With our business valuation services, we give you more time to improve the company's value to achieve a higher selling price when it goes on the market.

Be In A Better Position During Mergers/Acquisitions

You must demonstrate how your firm's value, asset withholdings, growth, and future potential are valued by showing them what you can provide. Major businesses will try to buy or merge with yours for the lowest possible price. We help you negotiate for the appraised valuation numbers provided by a well-known and reputable valuation determination service so that you can get the most out of your business.

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Unlock the True Worth of Your Business and Shares

Unlocking the true worth of your business or company shares is essential for making informed decisions, attracting investors, or planning for the future. At Verus Accountants, our expert business valuation accountants are ready to assist you with comprehensive business valuation services. With our expertise, experience, and client-centric approach, we’ll help you uncover the true value of your business or shares.

Contact us today for a consultation and take a step towards maximising your financial potential.

Alternatively, explore our other solutions for your personal or business accounting needs.

FAQs.

What is the difference between a Business Valuation and a Business Appraisal?

A business valuation and a business appraisal are both very similar in what they do: provide an understanding of a business’s financial situation. However, they mostly differ in depth and purpose.

Business owners need business valuations; while most business or share buyers need a business appraisal.

Business valuations are formal, extensive documents that provide comprehensive granular insight that take much more factors into account, which provide a lot of weight for solving or preparing to solve business disputes.

Business appraisals on the other hand are much simpler assessments, that help you understand how much to sell or buy a business.

How do Business Valuations work?

There are different ways to value a business, and the approach taken will vary depending on the purpose of the business valuation and the size and type of business in question.

These are some of the approaches our accountants may use to evaluate your business:

a) Income Approach
b) Capitalisation of Earnings Method
c) Discounted Cash Flow Method
d) The Market Approach (or Market Price)
e) Guideline Public Company Method
f) Guideline Transaction Method
g) The Asset Approach
h) Adjusted Net Asset Method
i) Liquidation Value Method

It’s important to note that on top of these factors, your debts and liabilities also negatively affect your overall business valuation.

Our accountants can also help advise you on whether a full business valuation better suits your needs or if a simple business appraisal is efficient to cover your needs.

What are the 3 most common ways to value a business?

The three most common approaches to valuing a business are by income, by the market or by assets:

The income approach calculates a business’s value based on its ability to generate income.
The market approach compares the business to similar companies in the same industry.
The asset approach calculates a business’s value by adding up its assets and subtracting its liabilities

Why is Business Valuation important?

Knowing your business’s value is a critical component of managing your business. It provides insight so you can identify leverage or liabilities when buying or selling businesses, assets, technology stocks; succession planning, exit-planning, doing taxes, resolving a dispute, and more.

Having the proper insight into the health and wellness of a business helps you act proactive and create strategies to ensure that your business is on the right track.

How long does a Business Valuation take?

A business valuation usually takes up to 2-3 weeks to prepare after all the relevant information is provided.

What is Share Valuation?

Share valuation refers to the intricate process of determining the intrinsic value of a company’s stocks or shares. Many of the same methods used to calculate a business valuation are also methods used for share valuation in accounting:

a) Net Asset Method – by assets
b) Capitalisation of Earnings Method – by earnings
c) Discounted Cash Flow Method – by income
d) The Market Approach – by the market price (selling price of similar assets)
EV/EBITDA Multiple Method – by dividing the Enterprise Value by (Earnings Before Tax + Interest + Depreciation + Amortization)
e) Guideline Transaction Method – by similar companies

Share valuation is also an integral finding in most business valuation findings.

How to calculate the share price from the valuation?

Our accountants can provide you with share valuation services as part of your business valuation.

However, for investors looking to buy stocks in a publicly traded company, the process is based more on coming out with estimates. To get an understanding of how valuable a company’s stock is, take the last updated value of the company stock and multiply it by the number of outstanding shares.

Why is Share Valuation important?

For business owners dividing or selling shares, share valuation is important so they can have an understanding and confidence on how much to price their shares.

Share valuation is critical for investors to find success in their investments, as the intrinsic market value of a share may be different (higher or lower) than the market price. Share valuations help let buyers understand whether a share is worth buying and/or prepare to buy when it meets a certain threshold.