Business Valuation
Business valuations are required at many different stages in a business cycle.
When commencing a business you want to ensure the value is fair.
On sale of a business you want to ensure you are obtaining the best possible price.
At other times a valuation may be required for the following reasons:
• Finance
• Capital raising
• Partner/Shareholder entry or exit
• Ownership disputes
• Matrimonial proceedings
• Compensation claims
• Land resumptions
At Cooper Reeves we undertake valuations at every level. From a detailed due diligence that seeks to unlock fair value to high-level valuations to assess indicative business value.
Case Study - Retailer subject to resumption due to public infrastructure project
We acted for the business owner. The negotiation was concluded quickly with the owner achieving 4.4 times EBIT as a cash price. This allowed the owner to immediately commence searching for new premises.
Case Study - Manufacturing Business In acting for the seller we found that the value sought was underpinned by sale of a particular product in a region outside its written authority specified in a licence agreement. We negotiated with the neighbouring licence holder who acknowledged the agreement with a sub-licence.
The business was then offered for sale and was concluded with a cash settlement of $17.25m which was 5.75 X EBIT.