BUSINESS VALUATION SERVICES
Lotus Amity provide a range of Business Valuations services. We provide valuations in many matters, including disputes, restructuring, impairment reviews, for tax purposes and in transactions.
We also provide equity valuations, goodwill valuations, minority interest valuations and intellectual property valuations. The valuation can be for a start-up or a well established business.
What information is required?
The information required will depend on the matter, the required outcome, the time available and the complexity of the matter.
For business and equity valuations the information we typically require to begin with includes:
- Last 5 years of financial statements
- Current year-to-date monthly management accounts
- Details of non normal and non business operating revenue and costs
- Details of discontinued businesses and new business opportunities
- Budget & Forecasts (together with performance against budget)
- Business history and background
- Details of key customers, products & services, markets and suppliers
- Any contracts and special or unique relationships held by the business
- Key management and staff
- Business plan and competitive advantage details
- Any IP owned by the entity
Usually once we have had access to the financial information we will have additional questions.
Fees: How much does it cost?
We generally operate on a fixed fee basis where ever possible. Once we have sufficient information we provide a fee based on our understanding of those requirements. Valuation reports start at $5,000 plus GST
Time frame: How long does it take?
It really does depend on the scope of the engagement, complexity and the amount of information involved. For a straight forward valuation report we would prefer 3-4 weeks from the the time of receiving all the requested information. The earlier the notice we get the better we are able to incorporate all relevant information
What does a report look like?
A report will typically be comprehensive but easy to understand. The format will depend on the type of engagement, so for example. a valuation report would typically include:
- Glossary of relevant valuation terms and appropriate rules and standards followed
- Engagement & instruction details, purpose of engagement and scope, definition of value and why, key assumptions, information relied upon (contained in appendix), statement of independence and duties to the court
- Description of the business, business ownership structure and what is being valued (eg. equity or the business)
- Consideration and description of key customers, products & services, suppliers, competitive advantage and risk profile
- Consideration and description of relevant industry analysis
- Analysis of financial information for the last 5 years and analysis of current financial & forecast information, consideration of the accounting policies applied and sources of financial information, eg. audited?
- Consideration and description of any non business and non recurring income and expenses
- Consideration and description of appropriate valuation approaches and explanation for the method chosen
- Consideration and description of any relevant market date, eg. relevant transactions or comparable company data
- Where relevant, the application of a Discount for Lack of Control and the rationale and support for the discount applied
- Where relevant, the application of a Discount for Lack of Marketabilty and the explanation and support for the discount applied
- Where relevant, consideration and description of any surplus assets and liabilities
- Valuation calculation and explanation
- Any methods used as a cross check, eg. rules of thumb
- Consideration of the value applicable to intangible assets, including goodwill
- Qualifications & experience
Simon is a CA Accredited Business Valuation expert, Chartered Accountant and a Certified Fraud Examiner. Simon specialises in providing forensic accounting and valuation services. Prior to founding Lotus Amity, he was a Forensic Accounting partner with BDO Australia and led their National Forensics practice. He has worked as a forensic director for a major offshore forensic accounting practice which included assisting in multi-billion-dollar litigation in relation to giant Bernie Madoff Ponzi scheme. Simon provides valuation services in disputes, for raising finance, for restructuring, transactions and for tax purposes.
Lotus Amity provide Financial Clarity
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