Key takeaways
Company value must identify what is being valued
The operating business, the company’s equity and a particular shareholding are different subjects. Agree the interest, inclusions, date and basis in writing before comparing figures or commissioning the report.
A percentage holding is not automatically a percentage of whole-company value
Share classes, voting and distribution rights, transfer restrictions and the valuation basis can affect a specific interest. Neither a minority discount nor a control premium should be applied without supporting evidence.
Cash and liabilities need one consistent reconciliation
Operating cash, surplus assets, financing debt and shareholder loans must be treated consistently with the selected method. Avoid double counting working capital or assuming the share sale automatically transfers a shareholder’s loan claim.
The company’s turnover does not choose the engagement
Purpose and permitted reliance determine the appropriate scope. IBV requires at least Limited Scope for tax, ownership changes and related-party transfers; its Calculated Value is restricted to the client’s own preliminary planning.
A valuation is evidence, not a guaranteed transaction outcome
A report explains the defined value, methods, assumptions and limitations. It does not establish tax eligibility, guarantee recipient acceptance or calculate after-tax sale proceeds unless separately and appropriately scoped.
Company valuation services for the decision in front of you
Are you selling your company, transferring shares, planning succession or preparing evidence for your tax adviser? You need more than a figure labelled “company value”. You need to know what that figure values, which date it describes and who may rely on it.
IBV™ provides independent company valuation services for Australian private-company owners and their advisers. Dr Patrick Hillenbrand, AVI Certified Business Valuer, leads the agreed analysis and signs the report. We define the business or ownership interest, review the evidence and explain the reasoning, assumptions and limitations behind the result. The Certified Business Valuer designation is issued by the Australian Valuers Institute.
Your company valuation service starts with a confidential conversation—not a preselected package or a multiple promised before the records are reviewed. Tell us the company structure, why the value is needed, the relevant date and intended users. We then agree the scope and Fixed Professional Fee before work begins. Discuss your company valuation.
What needs valuing: the business, the company’s equity or your shares?
These can be different numbers. A company is a legal entity; its business is the activity it carries on; your shares are an ownership interest in that entity. ASIC explains that the company has a separate legal existence and its assets belong to the company, not directly to its shareholders.
The operating business
An operating-business valuation considers the defined trading activity and the assets, rights and resources required to generate its earnings. For a proposed asset sale, the instruction must specify what transfers and what stays behind. Stock, debtors, equipment, contracts and working capital cannot simply be assumed to be included in every quoted business value.
The company’s equity
Where an operating enterprise value is assessed, a consistent reconciliation is needed to reach the value attributable to shareholders. Relevant financing debt, cash and non-operating assets may require adjustments. The treatment depends on the method, valuation basis and assets already included; a mechanical “add all cash, subtract every liability” rule risks double counting.
A particular shareholding
The value of a specific interest also depends on its rights and restrictions. Ordinary and preference shares may carry different economic rights. A minority holding is not automatically worth a straight percentage of a controlling interest—and a discount is not automatic either. The purpose, basis, governing documents and evidence must support the treatment. For a defined parcel, see our private shares and trust units service.
Ask for the subject of value in writing. “The company is worth this amount” is incomplete unless the report identifies the business or share interest, inclusions, valuation date and basis.
When an independent company valuation helps
Selling or buying a company
A share transaction and a business-asset transaction can transfer different obligations and assets. An independent valuation provides a documented reference for the defined interest before negotiations—not a guaranteed sale price. Your transaction advisers separately assess warranties, indemnities, payment terms, tax and legal due diligence. Review our selling a business valuation service for sale preparation.
Shareholder exits and ownership changes
A departing owner, incoming shareholder or family transfer may need a common evidence base. Identify the parcel and check whether the shareholders’ agreement specifies a valuation basis or process. A loan owed to a departing shareholder is a separate claim; do not assume selling the shares also assigns, repays or releases that loan. Our shareholder valuation guide explains the ownership questions in more detail.
Tax and related-party transactions
Your accountant or tax adviser identifies the applicable tax question, transaction and required date. IBV provides the separately agreed valuation evidence. Market value may be relevant under particular tax rules; it is not the universal basis for every company valuation. Tax and ATO purposes require at least Limited Scope under IBV policy, not because the ATO universally mandates that service label. See CGT valuation reports and related-party transfers.
Succession and private planning
Understanding the company and ownership interests can help owners explore a staged exit or family succession. Personal preliminary planning differs from an actual share transfer or a report others need to rely upon. We confirm that distinction before recommending an engagement. The valuation does not settle inheritance, duty or concession questions; your legal and tax advisers address those separately. Explore estates and succession valuations.
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.
How we assess a private company’s value
The method follows the instruction, business economics and available evidence. It does not follow turnover alone or a generic industry multiplier.
For an established trading company, maintainable earnings analysis examines whether reported profit reflects the earnings a market participant could sustain. Owner remuneration, related-party rent and non-recurring items require evidence. Replacing an owner’s operational work may carry a real cost. Drawings or dividends that did not reduce reported profit are not expenses to add back.
Where forecasts are sufficiently reliable and within scope, a discounted cash-flow method may be appropriate. Forecasts need to reflect investment, working capital and operating risks—not simply growth targets. The discount rate must match the cash flow’s enterprise or equity perspective and tax treatment. A rate cannot be borrowed from a different measure just because it produces a convenient result.
Asset-based analysis may be relevant to an asset-holding company or another instruction where the asset base is central. Accounting carrying amounts are not automatically market values. Property or specialist assets may need separately scoped specialist valuations. Market evidence can inform the assessment where the businesses, interest, earnings and transaction terms are sufficiently comparable.
A second method is useful when reliable evidence supports it, not as a number to average mechanically with the first. The International Valuation Standards provide a recognised valuation framework. Read our business valuation methods guide for the deeper explanation. IBV’s report explains why the chosen approach fits the particular company and identifies material uncertainties.
Cash, debt, shareholder loans and group structures
A company can hold assets beyond the trading business. Surplus cash, investments or non-operating property may need distinct treatment, while some cash may be required for ordinary operations. Debt and debt-like items need to be reconciled to the same date and value perspective. Working capital already reflected in the operating valuation must not be added again without justification.
Provide the terms and reconciliations for shareholder loans, related-party balances, guarantees and securities. A loan’s face value is not automatically its market value: recoverability, repayment terms, ranking and enforceability can matter. Your lawyer advises on whether a claim can be transferred and the documents required; your accountant addresses the tax consequences.
If several entities share premises, employees, intellectual property or customers, explain those relationships. Identify who owns each asset, who earns the revenue and whether commercial access continues after the proposed transaction. Consolidated profit can obscure entity-level rights and obligations. We agree which entities and interests are included before accepting the instruction.
For a clearer explanation of the reconciliation, see enterprise value versus equity value. Company value, share consideration and after-tax sale proceeds remain separate measures.
Records to prepare for your company valuation
Start with the structure and purpose, then assemble the supporting records. Depending on the instruction, useful information includes:
Missing records do not automatically prevent an enquiry. Tell us what is available so we can assess whether the instruction is workable and what restrictions may arise. For a historical date, supply the evidence relevant to that date rather than assuming today’s performance can be projected backwards. Authority to share confidential records should be agreed with the relevant owners and advisers.
Financial statements and tax returns for approximately three years, plus current management accounts and an explanation of unusual periods.
The company’s share register, share classes, constitution, shareholders’ agreement and the specific interest being valued.
Detailed cash, borrowing and shareholder-loan balances, including terms, security and related-party reconciliations.
Asset schedules, stock information, property interests and identification of non-operating assets.
Key contracts, lease terms, customer concentration, staffing arrangements and the owner’s actual duties.
Budgets and forecasts where relevant, with assumptions and evidence rather than an unsupported target.
The proposed transaction, valuation date, intended users and any recipient-specific requirements confirmed by your advisers.
Scope, Fixed Professional Fees and permitted reliance
The engagement is chosen by purpose and reliance, not turnover. Our valuation and fee comparison sets out the current Fixed Professional Fees, methods, supporting reports and delivery arrangements in one place.
Calculated Value is for the client’s own preliminary planning only, not third-party reliance. Ownership changes, restructures, related-party transfers and tax matters require at least Limited Scope under IBV policy. Limited Scope produces a Conclusion of Value; its name describes the scope, not a grade of quality. Restrictions expected to materially affect value may arise from the instructions or during the work, and a fuller engagement may have produced a different result. Method count alone does not establish Limited Scope.
Full Conclusion of Value is IBV’s service name, not a separate APES 225 category, with which IBV voluntarily aligns, and is quoted on instructions. The fee is agreed before work begins; all fees are + GST and payment is due on signing. Calculated Value and Limited Scope generally take 5–7 business days after required information, clarifications, signed documents and payment are received. Full Conclusion timing is agreed individually; complex matters may need longer.
Identify everyone who needs to rely on the report before engagement. Supplying records, reviewing a draft or discussing assumptions does not automatically authorise reliance. Neither a valuation credential nor a standards reference guarantees acceptance by the ATO, a lender or another recipient.
Independence you can understand, reporting you can follow
The IBV™ Independence Guarantee means no commissions, no hourly billing, no fee linked to the value concluded and no interest in buying or selling your company. We also assess conflicts for the particular engagement. A Fixed Professional Fee alone establishes neither independence nor quality.
IBV voluntarily aligns its processes and reporting with relevant principles of APES 225 Valuation Services. This is distinct from the membership-based obligations of accounting bodies that have adopted the standard. Your accountant can explain financial records and tax requirements while IBV undertakes the agreed valuation; collaboration does not blur the scope or permitted users.
The report identifies the subject, date, basis and purpose; explains the selected analysis; and records material assumptions and limitations. Review inside a Business Valuation Report before discussing your requirements. IBV does not accept expert-witness or court-appointed valuations. Start with a Free Valuation Call to confirm whether we can undertake your matter.
Sources and further reading
This page provides general service information, not legal, tax or investment advice. Confirm the transaction requirements with your advisers and the valuation instructions with IBV.
ASIC — Shareholder rights and responsibilities: separate company ownership, share registers and voting rights.
ATO — Market valuation for tax purposes: valuation evidence and processes for the applicable tax purpose.
APESB — APES 225 Valuation Services: engagement definitions and reporting principles; IBV’s alignment is voluntary.
Frequently asked questions
What do company valuation services include?
The agreed analysis of a defined business or ownership interest at a specified date, with a report explaining the basis, evidence, methods, assumptions and limitations. Inclusions depend on the engagement. Identify whether you need operating-business value, company equity or a specific shareholding, and disclose intended users before work begins.
Is a company valuation the same as a business valuation?
Not always. A business valuation may assess the operating activity and defined assets, whereas a company equity valuation considers the interest attributable to shareholders. A valuation of your shares also considers the particular rights and restrictions. Ask for the exact subject and inclusions, rather than relying on the label alone.
Do you value privately owned and family companies across Australia?
IBV accepts enquiries for Australian private-company business interests, including owner-operated and family companies, subject to competence, conflicts, information access and agreed scope. Explain any group entities or non-operating assets. Property or other specialist assets may need separately scoped specialist valuations.
How are cash, debt and shareholder loans treated?
Their treatment must match the valuation method and subject. Surplus assets and financing debt may bridge operating value to equity value, while working capital already reflected must not be added twice. Shareholder loans are distinct claims: review terms and recoverability, and obtain legal and tax advice on repayment, assignment or release.
Is my minority shareholding worth a straight percentage of the company?
Not necessarily. Consider the share class, voting and distribution rights, transfer restrictions, agreements and valuation basis. A minority discount is not automatic, nor is a control premium. The treatment must be justified for the particular interest and purpose. Provide the constitution, share register and shareholders’ agreement.
Can the valuation support CGT or a related-party share transfer?
Yes, where IBV accepts the instruction and agrees the required interest, date, basis and users. Your tax adviser identifies the applicable tax rules and eligibility questions. IBV requires at least Limited Scope for tax and ownership changes; that is IBV policy, not a universal ATO service-label requirement or an acceptance guarantee.
What information is needed to value my company?
Typically several years of financial statements and tax returns, current management accounts, share and ownership documents, asset schedules, debt and shareholder-loan terms, key contracts and owner-duty details. Forecasts may be relevant to the agreed scope. Explain missing records and provide evidence relevant to the valuation date.
How do you choose the company valuation method?
The method depends on the purpose, company economics and reliable information within scope. Maintainable earnings, discounted cash flow, asset-based analysis and market evidence have different uses. Rates must match the earnings or cash flow being valued. Method count alone does not determine engagement type, and alternative results are not mechanically averaged.
Can my accountant or a buyer rely on the company valuation?
Only where authorised under the engagement terms for the stated purpose. Providing records, discussing assumptions or reading a draft does not automatically confer reliance. Identify intended users and their requirements in advance. Calculated Value is restricted to the client’s own preliminary planning, not third-party reliance.
How do I get a Fixed Professional Fee and confirm timing?
Start with a confidential call about the company, purpose, date, users and available records. IBV agrees the scope and Fixed Professional Fee before engagement; all fees are + GST and payment is due on signing. Calculated Value and Limited Scope generally take 5–7 business days after required information, clarifications, signed documents and payment; Full Conclusion timing is agreed individually. Review the linked fee comparison for current prices.
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.
Free Valuation Call