About IBV™ | Independent Business Valuers Australia

Many standard valuation engagements can be completed within approximately five to seven business days after:

• the Engagement Letter has been signed;
• the requested information has been received in a usable form;
• any material questions have been answered; and
• the agreed IBV fee has been received.

More complex matters may take longer, including disputes, historical valuations, multi-entity structures, comprehensive valuations, discounted cash flow analysis, incomplete records or engagements requiring extensive research.

The expected timeframe will be confirmed in the engagement proposal.

The information required depends on the business and the purpose of the valuation. It commonly includes:

• recent financial statements and tax returns;
• current year-to-date management accounts;
• details of business ownership and related entities;
• information about owner remuneration and non-recurring expenses;
• forecasts or budgets, where available;
• details of debt, assets and working capital;
• information about customers, suppliers, employees and key contracts;
• any matters that may materially affect future earnings or business risk; and
• completion of the online IBV™ Risk And Value Driver Assessment (RAVDA) by an owner or other key person.

IBV will provide a tailored information request once the engagement has been scoped. You do not need to organise every document before contacting us.

The usual process is:

• an initial confidential discussion about the business, the purpose of the valuation and its intended users;
• a written proposal from IBV confirming the scope, fee, timing and required information;
• acceptance of the Engagement Letter and payment of the agreed fee;
• collection and review of the relevant financial and commercial information;
• valuation analysis and, where required, follow-up questions;
• factual review of a draft report, where appropriate; and
• issue of the final valuation report.

Submitting an enquiry does not create a professional engagement. An engagement begins only when IBV has confirmed acceptance and the Engagement Letter has been agreed.

Subject to the purpose of the valuation, the information available and the agreed scope, IBV can value:

• privately owned businesses;
• small and medium-sized enterprises;
• professional and service businesses;
• companies, partnerships and business operations;
• shares, units and other ownership interests;
• controlling and non-controlling interests;
• client books and certain identifiable intangible assets; and
• business interests held through more complex entity structures.

IBV does not provide:

• real property valuations, such as land or buildings; or
• valuations prepared for litigation, expert evidence or court proceedings.

Where required, IBV can work alongside an appropriately qualified property valuer, forensic accountant or litigation valuation specialist.

Before accepting an engagement, we assess whether the matter falls within our competence and service scope. Where another specialist is required, we will explain this at the outset.

The fixed fee covers the agreed scope of work, review of the information supplied, financial and commercial analysis, valuation conclusion and written report.

It also includes reasonable clarification of the report following delivery. If additional entities, expanded scope, substantial new information or other work outside the agreed engagement is required, this will be discussed and agreed before additional work is undertaken.

The report is prepared for the client, purpose and intended users identified in the Engagement Letter.

It should not be used for another purpose or relied upon by another party without IBV's prior written agreement. Additional users or reliance requirements should be identified before the engagement begins, as they may affect the scope and reporting requirements.

Yes, but an updated valuation is usually a new valuation engagement rather than a simple amendment to the original report.

A valuation applies at a particular valuation date. If financial performance, ownership, market conditions, business risks, available information or the intended purpose have changed, the earlier conclusion may no longer remain appropriate.

The scope and fee for an update will depend on the time elapsed, the extent of the changes and the amount of new analysis required. In some cases, a focused update may be sufficient; in others, a new valuation and report will be required.

A previous valuation should not be relied upon for a later date or different purpose without first confirming that it remains suitable.

A valuation may be required or useful for purposes including:

• the proposed sale or acquisition of a business;
• shareholder or partner entry and exit;
• succession and estate planning;
• restructuring and taxation support;
• capital gains tax;
• financial reporting;
• lending or security assessment;
• non-litigious shareholder, partner or commercial negotiations;
• insurance and risk-management planning; and
• internal business planning.

The purpose of the valuation must be identified before work begins, as a valuation prepared for one purpose may not be suitable for another.

IBV does not prepare valuations for litigation, expert evidence or court proceedings.

There is no reliable one-size-fits-all multiplier.

Depending on the engagement, IBV may consider recognised valuation approaches based on:

• maintainable earnings or cash flow;
• comparable market transactions;
• relevant industry valuation evidence;
• business assets and liabilities;
• growth prospects;
• customer and supplier concentration;
• reliance on owners or key employees;
• business systems and transferability;
• financing and working-capital requirements;
• industry and economic conditions; and
• the rights and level of control attached to the interest being valued.

Relevant methods are selected according to the purpose of the valuation, the available evidence and the characteristics of the business. Conclusions are cross-checked where appropriate.

No valuer can guarantee that a regulator, lender, auditor, court or other third party will accept a particular valuation conclusion.

IBV prepares reports for their stated purpose using transparent methodology, clearly identified assumptions and supporting evidence. It is important to tell us at the outset who is expected to receive or rely on the report so that the appropriate scope and reporting requirements can be considered.

IBV does not prepare valuations for litigation, expert evidence or court proceedings. Auditor enquiries, lender requirements or proposed third-party reliance may require an expanded scope or separate engagement, which will be discussed before work begins.

IBV provides objective, evidence-based valuation conclusions. We do not advocate for a predetermined or “highest” value, and our fees are never contingent on the valuation conclusion or the outcome of a transaction.

Each proposal and report identifies the responsible valuer, together with their current qualifications and professional designations.

Where appropriate, our work has regard to recognised Australian and international valuation principles and guidance. Any actual or potential conflicts of interest, or relationships material to the engagement, are considered before the engagement is accepted.

Yes. Client information is handled confidentially in accordance with the engagement terms, IBV’s Privacy Policy and applicable legal obligations.

Information may be disclosed where authorised by the client, reasonably necessary to perform the engagement, or required by law, a court or a regulatory authority.

IBV provides business valuation services only.

IBV does not hold an Australian Financial Services Licence and is not an authorised representative of an AFS licensee. We do not provide financial-product or investment advice.

A valuation of shares, units or another ownership interest is an estimate or opinion of value for the purpose stated in the report. It is not a recommendation to acquire, dispose of, hold or finance a financial product.

Unless separately and lawfully agreed, IBV also does not provide legal, taxation, accounting, audit, insurance-product or business-broking advice. Clients should obtain advice from appropriately qualified and, where required, licensed advisers.

Contact us even if your records are not yet complete.

IBV will identify the information required and explain any gaps that may affect the valuation. In some cases, reasonable adjustments or alternative evidence may be considered. Where the available information is insufficient to support a reliable conclusion, we will explain this before proceeding or issuing the report.

APES 225 Valuation Services is a professional standard covering the ethical, engagement, reporting and documentation obligations of members of CPA Australia, Chartered Accountants ANZ and the Institute of Public Accountants who provide valuation services.

IBV is not subject to APES 225 as a professional-body membership requirement. However, our valuation process and reporting framework have been developed with regard to its relevant principles, including:

• clearly defined engagement terms, purpose, scope and valuation date;
• independence, objectivity and conflict-of-interest considerations;
• recognised valuation methodologies supported by relevant evidence;
• transparent assumptions, limitations and conclusions; and
• appropriate documentation of the valuation process.

Our business valuation reports are also designed to address the ATO’s expectation that tax valuations be objective, supported by credible evidence, and capable of being replicated and defended.

A business valuer assesses the value of a business or ownership interest for a specific purpose and valuation date.

A professional business valuer typically analyses financial performance, relevant market evidence and appropriate valuation methodologies, while also considering commercial risks and value drivers such as owner dependency, customer concentration, recurring revenue, key people, systems, contracts and competitive position.

The role is not simply to produce a number. A good business valuer should explain how the value was determined, the assumptions made and why the conclusion is supportable.

Business valuations may be required for tax and CGT, succession planning, shareholder transactions, funding, insurance, sale preparation and other commercial purposes.

Choose a business valuer with appropriate qualifications, relevant valuation experience and a clear, evidence-based methodology. Independence is also important, particularly where the valuation may be relied on for tax, shareholder, funding or other formal purposes.

Ask how the valuer determines value, what market evidence they use, how they assess business-specific risks and value drivers, and what the final report will explain.

A good business valuer should be able to clearly explain their approach, assumptions and conclusions — and why the valuation is supportable.