Company valuation, Australia-wide
Why pay $5,000 for a company valuation? Ours is $1,495 + GST.
For selling or buying, partner or shareholder buyouts, restructures and transfers, tax or CGT, and family law.
- Signed report in 2 business days
- A proper report, not a template
- Fixed fee, agreed before we start
- Free 15-minute call with the valuer
A company valuation is an assessment of what a company, or a parcel of its shares, is worth at a specified date and for a stated purpose. It starts with the value of the business the company runs and ends with the value of the equity, or of the particular shares in question.
Company valuation or business valuation: what is the difference?
A business valuation values the operating business: its earnings, assets and the goodwill that sits on top of them. That figure is usually an enterprise value, the value of the business before anyone asks who is owed what.
A company valuation goes two steps further. First it bridges from enterprise value to equity value by taking account of debt, cash, surplus assets and loans to or from shareholders and related parties. Then it values the particular shares in question, which depends on the rights attached to them, the degree of control they carry, the constitution and any shareholder agreement, and how readily the parcel could be sold.
If you are selling or buying shares, admitting or buying out a shareholder, restructuring, or need a market value your accountant or the ATO will rely on, it is the equity or the share value you need, not the headline business value.
When a company valuation is needed
A sale or purchase of shares rather than assets; a shareholder joining, leaving or being bought out, including a buy-sell agreement that calls for a valuation; a restructure, rollover or related-party transfer where market value must be documented; a capital raising or investor entry; an employee share scheme; and succession or estate planning where shares pass between generations.
Shareholder disagreements are a frequent starting point. Where two shareholders each have a number in mind, an independent valuation with a fee fixed in advance gives both sides the same report to work from.
How the fee is set
The fee is set by the annual turnover of the company: $1,495 + GST under $2 million with the signed report in 2 business days, $2,495 + GST from $2 million to $3 million and $3,495 + GST from $3 million to $10 million, each with the signed report in 3 business days, and above $10 million a fee quoted in writing before work starts, with the delivery date agreed before commencement. Each additional entity is $795 + GST and each historical valuation date $495 + GST. Delivery time starts once payment and all required information have been received.
Purpose, structure and how difficult the answer turns out to be do not move the fee, and it is confirmed in writing before any work starts.
Valuing a minority shareholding
A 25 per cent holding is rarely worth 25 per cent of the equity value. A minority holder usually cannot set dividend policy, appoint directors or force a sale, and there is no ready market for the parcel. The constitution and shareholder agreement may also fix a price mechanism, a pre-emptive right or a compulsory transfer that changes what the shares are worth to the holder. Each of these is examined against the documents, not assumed.
The report identifies the company and the shareholding valued, the valuation date, the purpose and the basis of value; reviews the financial record and normalises earnings with each adjustment explained; sets out the method, the enterprise value, the bridge to equity value line by line and the analysis of the particular parcel; and states the conclusion with its assumptions and limitations, signed by the valuer you have been speaking with.
Common questions.
How much does a company valuation cost in Australia?+
At Oliver Group a signed company valuation is $1,495 + GST for a company with annual turnover under $2 million, $2,495 + GST for turnover between $2 million and $3 million, and $3,495 + GST between $3 million and $10 million; above $10 million it is quoted. Each additional entity and each historical valuation date is quoted separately, and the fee is fixed in writing before work starts.
How long does a company valuation take?+
A small-company report is delivered in 2 business days and a medium- or large-company report in 3 business days. Above $10 million of turnover the delivery date is agreed before commencement. Delivery time starts once payment and all required information have been received.
Do you value shares in a Pty Ltd company?+
Yes. Most of the companies we value are private companies. The report values the business, bridges to the value of the equity, and then considers the particular parcel of shares: its class, its rights, the degree of control it carries and any shareholder agreement that affects it.
Can you value a start-up or a company that is not yet profitable?+
Yes. A company that is not yet profitable is valued under the package for its annual turnover, and the method differs from an established profitable company: the report explains why. A start-up is valued by our dedicated start-up practice, Start-Up Valuations (startupvaluations.com.au), which publishes its own fixed fees.
What if the shareholders disagree about the value?+
An independent valuation with a fee fixed in advance gives everyone the same report to work from. Shareholders can instruct us jointly, and the conclusion follows the evidence rather than the position of whoever is paying. Where an agreement sets a valuation mechanism, we apply it and say so.
What information do you need?+
Purpose, and who will rely on the report; which shares or interest, and the valuation date; the last three years of financial statements and current management accounts; the constitution, shareholder agreement and share register; and loans to or from shareholders and related parties. Nothing is needed before the first conversation.
Talk to a valuer
Tell us what you need valued.
A fifteen-minute call confirms the package, the fixed fee and the delivery date, before you commit to anything.
03 8375 4177Mon to Fri, 9am to 5:30pm Melbourne time
Send the form and we reply within one business day. No documents needed to start.
Small Business Valuation
$1,495 + GST
For a business with annual turnover under $2 million. Signed report in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the outcome.
Larger business? Tell us in the form and we recommend the right package. All fees
Fixed fee from $1,495 + GST, confirmed in writing before we start.