Key takeaways
Agree the purpose, subject, date and users before gathering records.
Those four instructions decide which records matter and for which period. A retrospective or tax valuation needs records as they stood at the valuation date, not just the latest accounts.
Send three to five years of accounts with general ledger detail.
Finalised financial statements, tax returns, current management accounts and ledger detail let the valuer test earnings and add-backs rather than relying on summary figures.
Ownership documents can change the value of your interest.
Constitutions, trust deeds and shareholders' agreements may include valuation clauses, transfer restrictions or pre-emptive rights. Loan agreements, including Division 7A loans, affect equity value.
Contracts, leases and staff depth show whether earnings will continue.
Revenue by customer, key contracts, lease terms and who holds critical relationships are the evidence behind transferable goodwill and the risk applied to earnings.
Imperfect records are normal—hidden gaps are the problem.
Missing years can often be rebuilt from tax returns and bank records, and assumptions can be disclosed. Tell the valuer early; only unrecorded income cannot be fixed or counted.
Why preparation changes the outcome
A valuation is only as strong as the evidence behind it. When records arrive complete and organised, the valuer spends time analysing the business rather than chasing documents, and the report can explain every adjustment by reference to a source. When records are missing, the valuer must either make assumptions—and disclose them—or narrow the scope.
This checklist is purpose-neutral: it applies whether you are selling, buying out a partner, restructuring, planning succession or meeting a tax requirement. If your valuation is for capital gains tax, our CGT valuation preparation guide adds the date-specific records that purpose needs. The Australian Government's guidance on valuing a business lists many of the same records, and buyers' advisers will ask for them during due diligence too.
Start with the instructions, not the documents
Before collecting anything, confirm four things with your valuer:
Those answers determine which records matter and for which period. A retrospective valuation, for example, needs records as they stood at the historical date—see our article on retrospective valuations.
The purpose — sale, buy-out, tax, family law, restructure or planning.
The subject — the operating business, all the shares or units, or a specific parcel.
The valuation date — today, a past date such as a restructure date, or the end of a financial year.
Who will rely on the report — you, your adviser, a buyer, a lender or the ATO.
Financial records
Financial statements for three to five years — profit and loss, balance sheet and notes, ideally as finalised by your accountant.
Income tax returns for the same years, for the trading entity.
Management accounts for the current year to date, and the same period last year for comparison.
General ledger detail — not just summaries. The valuer needs to see what sits inside each expense account to assess add-backs.
Business activity statements — useful to reconcile revenue with the accounts.
Aged debtors and creditors at or near the valuation date.
Stock records and how stock is counted and valued, if relevant.
Budgets or forecasts, if you prepare them. They are not required for every engagement, but where they exist they help explain expected trading.
Signed
A clear valuation conclusion starts with an agreed purpose, relevant evidence and disclosed assumptions. The report identifies the interest valued and explains the reasoning behind its conclusion.
Normalisation information
The earnings a valuation relies on are usually adjusted from reported profit. Prepare a short schedule listing:
Our guide to normalised earnings and add-backs explains how each is treated and why evidence matters.
What each owner and family member is paid, and what work they actually do.
Personal or private costs passed through the business, with evidence.
Genuinely one-off income or expenses, with the year and explanation.
Related-party arrangements—rent, management fees, loans—and their terms.
Ownership and legal documents
Company constitution, trust deed or partnership agreement, including amendments.
Shareholders' or unitholders' agreement — it may contain valuation clauses, restrictions on transfer or pre-emptive rights.
Share or unit register showing who owns what.
Loan agreements with banks, financiers and shareholders, including any Division 7A loan agreements.
Security and guarantees given over business assets.
Assets and premises
Fixed asset register with acquisition dates and written-down values.
Equipment and vehicle lists with condition and expected replacement timing.
Premises lease including term, options, rent reviews and assignment conditions.
Property details if premises are owned by the business or a related entity.
Intellectual property — registered trade marks, domain names, software and licences.
Customers, suppliers and contracts
Revenue by customer for the last two or three years. De-identified codes are fine.
Key customer and supplier contracts, especially terms on renewal, termination and change of ownership.
Franchise agreement if applicable, including transfer approval requirements.
Licences and accreditations the business depends on.
People and operations
Staff list with roles, tenure, pay and entitlements—de-identified if you prefer.
Key person dependencies — who holds critical relationships, licences or knowledge.
Organisation chart and a short description of the owner's own duties and weekly hours.
A brief business overview — history, services, market, competitors and any significant changes.
What if your records are not perfect?
Most owners worry about this, and most do not need to. Records are rarely perfect. What matters is that gaps are identified early and dealt with openly.
What cannot be fixed is income that was never recorded: it cannot be counted. A good valuer will tell you what each gap means for the scope and the reliability of the conclusion before work begins, and will disclose material limitations in the report rather than presenting false precision. The ATO's record-keeping guidance for selling or closing a business is also worth reading, because tax records you must keep anyway double as valuation evidence.
Missing years can sometimes be reconstructed from tax returns, BAS and bank statements.
Mixed personal and business costs can be estimated from samples and logbooks, with the method disclosed.
Undocumented arrangements can be confirmed in writing now, describing how they have operated.
Records most often forgotten
Even well-organised owners commonly miss a few items that later delay the valuation or change the conclusion:
These items rarely appear in summary financial statements, yet each can affect earnings, risk or the bridge from business value to the value of your shares. Raising them early is far better than having a buyer's adviser discover them later.
Loan account reconciliations between the company and each shareholder, and between related entities.
Trust distribution minutes showing how income was distributed in each year.
Lease variations, options exercised and landlord correspondence about renewal or redevelopment.
Warranty, refund or rework provisions, especially in construction and trades.
Unpaid superannuation, leave and long service entitlements, which a buyer will treat as liabilities.
ATO payment plans or outstanding lodgements, which may be treated as debt.
Pending disputes or claims, even if you expect them to resolve.
Changes since the last accounts—a key customer lost or won, a new competitor, a price rise, a staff departure.
A simple timeline for preparation
For most owners this takes a few hours of their own time spread across a fortnight, with the accountant supplying most of the financial records.
Week one: confirm purpose, subject and valuation date with your valuer; request finalised statements, tax returns and ledger detail from your accountant.
Week two: gather ownership documents, the lease, key contracts and loan agreements; prepare the add-back schedule and owner-duties description.
Week three: send the complete pack in one folder, with a list of anything missing and why.
Practical tips for sending documents
Use one shared folder with clear sub-folders that match this checklist.
Name files consistently, for example "2024 P&L final" rather than "scan_003".
Send everything at once rather than in instalments where possible.
Remove personal identifiers you do not need to share; IBV™ never publishes client details.
Keep a list of anything you could not find, with a note on why.
How preparation affects scope and fees
Complete, reliable records make it more likely that a Calculated Value or Limited Scope Conclusion of Value will suit your purpose without additional work. Our Fixed Professional Fees page explains what each engagement includes. If you would like to check your records against this list before committing, a short call with a valuer is a sensible first step.
Frequently asked questions
What documents do I need for a business valuation?
Typically three to five years of financial statements and tax returns, current management accounts, general ledger detail, ownership documents, loan agreements, asset registers, the premises lease, key contracts and a staff list. The exact list depends on the purpose and valuation date.
How many years of financial statements does a valuer need?
Usually three to five years, plus year-to-date management accounts. This shows trends and lets the valuer separate ongoing earnings from unusual years. Fewer years may be enough for a young business, with disclosure of the limitation.
Do I need to provide forecasts for a valuation?
Not for every engagement. If you prepare budgets or forecasts they can help explain expected trading, but many valuations rely mainly on historical normalised earnings. Your valuer will confirm what is needed for your purpose.
Why does the valuer need my general ledger?
Summary accounts do not show what sits inside each expense line. The ledger lets the valuer identify personal costs, one-off items and related-party payments that may need adjustment, with evidence for each.
Which legal documents matter in a share valuation?
The constitution or trust deed, any shareholders' or unitholders' agreement, the share or unit register and loan agreements. Agreements may set valuation rules, transfer restrictions or pre-emptive rights that affect value.
Source: APESB: APES 225 Valuation Services (IBV™ aligns voluntarily)
What if some of my records are missing?
Tell your valuer early. Missing years can often be reconstructed from tax returns, BAS and bank statements, and estimates can be disclosed. The valuer will explain how each gap affects scope and reliability before work starts.
Can unrecorded cash income be included?
No. Income that was never recorded cannot be evidenced and cannot support a valuation. Buyers, advisers and the ATO will not accept it.
Do I need to provide customer names?
No. Revenue by customer can be provided using codes. The valuer needs to see concentration and retention patterns, not personal details. IBV™ never publishes client information.
Are different documents needed for a CGT valuation?
Often yes. A CGT valuation centres on a specific date, so records must reflect the business as it stood then, alongside ownership history and acquisition details. Your tax adviser determines the tax treatment.
Source: ATO: Market valuation of assets
How long does it take to gather valuation documents?
Many owners can assemble the core pack within a week with their accountant's help. Organising files into folders matching the checklist and sending them together keeps the valuation itself on schedule.
A clear, independent view of value — with the evidence behind it.
- Understand the conclusion — and what drives value.
- Gain an independent perspective. Move forward with confidence.
- Benchmark your business against industry performance.
- Identify strengths, risks and opportunities through SWOT analysis.
WHAT YOU GET IN A LIMITED SCOPE VALUATION REPORT
Inside your IBV™ report
Executive Summary
Conclusion of value · Method selected · Valuer qualifications
Detailed Report
Maintainable earnings · Cap rate / multiple · Premise of value
The Evidence Pack
SWOT analysis · Top Performers Report · RAVDA score
APES 225 voluntarily aligned. Report depth and supporting analysis follow your agreed package and engagement scope.
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