Business Valuations

Maximise business value.

When you’re getting ready to sell a house, you’ll most likely spruce it up first – a bit of fresh paint, doing the gardens, last-minute renos – and preparing your business is no different. We put ourselves in the shoes of a potential buyer to determine what might prevent a sale, what could be reducing the value, and any risks that exist. Appealing to a broad market can help maximise business value by attracting a diverse client base and enhancing investment performance.

We put our ‘business value’ hats on and dive deep into what drives business value and how we can improve this to gain a higher multiple and better exit outcome for you.

Benchmark your business growth and build value to drive success.

Every business owner aspires to maximise the value of their company. This goal is vital, whether you are considering selling your business in the future or intending to keep it within the family for generations. Understanding how to increase its value is crucial for long-term success and sustainability.

By benchmarking your business growth against industry standards, you can identify areas for improvement and strategic opportunities. This process involves analysing financial metrics, assessing operational efficiencies, and evaluating market trends. Selecting the appropriate business valuation method is essential for accurate benchmarking and building value. Building value is not just about enhancing financial performance but also strengthening brand equity, expanding customer loyalty, and fostering innovation.

Engaging with professionals and advisers can provide insights and strategies tailored to your specific business needs, helping you navigate the complexities of valuation. By focusing on these elements, you can ensure your business is well-positioned in the market, enhancing its appeal to potential buyers or securing its legacy for future generations.

Understanding business valuations.

Business valuations are a cornerstone in determining the true worth of a company. This process involves a thorough assessment of various factors to arrive at a fair market value. For entrepreneurs, investors, and stakeholders, understanding business valuations is essential for making informed decisions about buying, selling, or investing in a company.

A business valuation provides a clear picture of a company’s financial health and potential, helping to set realistic expectations and strategic goals. Whether you’re planning an exit strategy, seeking investment, or simply aiming to understand your business’s standing in the market, a comprehensive valuation is indispensable. It not only highlights the current value but also identifies areas for improvement, ensuring that your business is well-positioned for future success.

Free business valuation survey

Complete our business valuation survey to learn more about factors that influence your business value. Financial statements play a crucial role in understanding these factors by showcasing past financial trends and potential future profitability. Completing the survey will give you a personalised scorecard including an industry benchmarking value analysis.

Take the survey

Completing an independent business valuation.

Independent business valuations are not only there to set realistic expectations when selling your business, but can (and should!) be used well ahead of time to grow your business and build its value over a long-term period.

Selecting the appropriate business valuation method is crucial for accurate independent valuations. So when the time does come to sell, your business is worth so much more than if not. Sure, you may have a rough idea of what your business could be worth, but this is not going to be entirely accurate.

At the end of the day, though, your business is only going to be worth what another is willing to pay for it. That’s why our team is here and focused on how to make your business as attractive as possible to potential buyers.

Discover your business's true value with professional valuation services.

Engage with our valuation services to confidently navigate business complexities and make informed decisions for success.

Independent business valuations can also be used to:

obtain finance - help to gain finance from the banks or alternative investments
buy & sell - simplify buy-sell situations and funding of the agreement
family law matters - assist in arising family law matters such as relationship breakdowns
spot weaknesses - identify any reduction in business value or the need to restructure
identify opportunity - find areas of the business that are underperforming
benchmark success - measure the growth and performance of your business
resolve disputes - settle shareholder or partnership disagreements or buyouts
negotiate terms - evaluate offers, negotiate a strategic sale, or plan an exit strategy
determine value - assign a value to goodwill or other intangible assets
showcase financial statements - demonstrate past financial trends to secure financing or determine a selling price

Value gap risk.

A value gap represents the discrepancy between your business's current worth and the value it must reach to fulfil your financial independence goals. Alarmingly, 8 out of 10 SMEs are unaware of their existing value gap risk, which could impact their long-term success and financial planning. Understanding the actual worth of your business is crucial not only for planning but also for strategic decision-making. Appealing to a broad market can help reduce value gap risk by diversifying your client base and enhancing your company's overall value. We offer a comprehensive range of business valuation services to assess the true value of your business and identify opportunities for value enhancement. Our services include:

Industry valuation benchmarks: comparing your business against industry standards to understand where you stand.
Business advisory valuations: tailored advice and evaluations to guide your business strategy.
Value improvement solutions: strategies and insights on enhancing your business’s value over time.
Formal business valuations: detailed assessments for various purposes, such as selling, buying, or planning.

To learn more about how these services can benefit your business, download our Business Valuation flyer. Additionally, complete our Business Valuation Survey to uncover the key factors influencing your business value. Completing the survey will provide you with a personalised scorecard, including an industry benchmarking value analysis, to help you better understand and manage your business’s worth.

Factors impacting business value.

Several key factors can significantly impact the value of a business. Understanding these elements can help you enhance your company’s worth and make it more attractive to potential buyers or investors.

Tangible assets: Physical assets such as property, equipment, and inventory play a crucial role in determining a business’s value. These assets are often easier to quantify and can provide a solid foundation for the valuation.
Intangible assets: Non-physical assets like intellectual property, patents, and trademarks also contribute significantly to a business’s value. These assets, while harder to quantify, can offer substantial competitive advantages and future revenue streams.
Market trends: The current market conditions and trends within your particular industry can greatly influence your business’s value. Staying abreast of market trends and adapting accordingly can enhance your business’s appeal and valuation.
Past performance: A company’s financial history, including revenue, profits, and growth rate, provides a snapshot of its stability and success. Consistent past performance can positively impact the valuation, showcasing the business’s reliability and potential.
Future profits: The potential for future growth and profitability is a critical factor in business valuation. Projections of future profits can attract investors looking for long-term gains.
Intellectual property: Ownership of unique intellectual property, such as patents or trademarks, can significantly increase a business’s value. These assets can provide a competitive edge and open up new revenue opportunities.
Company owes: The amount of debt a company owes can negatively impact its value. High levels of debt can be a red flag for potential buyers, indicating financial instability.

By understanding and optimising these factors, you can enhance your business’s value, making it more attractive to potential buyers and investors.

Business valuation methods.

Determining the value of a business involves several methodologies, each offering a unique perspective. The choice of valuation method depends on the specific circumstances of the business and the purpose of the valuation. Here are some of the most commonly used business valuation methods:

Asset-based valuation: This method calculates the value of a business based on its tangible and intangible assets. It involves summing up the value of all assets and subtracting liabilities. This approach is particularly useful for businesses with significant physical assets.
Income-based valuation: This method focuses on the business’s expected future income. It involves estimating future profits and discounting them to present value. This approach is ideal for businesses with stable and predictable income streams.
Market-based valuation: This method determines the value of a business based on the value of similar businesses in the market. It involves comparing the business to others in the same industry, considering factors like size, revenue, and market position.
Discounted cash flow (DCF) valuation: This method calculates the value of a business based on its expected future cash flows. It involves projecting future cash flows and discounting them to present value. This approach is useful for businesses with strong future growth potential.
Comparable company analysis: This method involves comparing the business to similar companies in the same industry. It looks at metrics like revenue, profit margins, and market share to determine a fair value. This approach provides a market-based perspective on the business’s value.

What is the business valuation service offered by Trekk Advisory Accountants?

Curious about the business valuation service from Trekk Advisory Accountants? Our approach provides a clear and thorough understanding of your company’s true worth. We dive into the details, identifying your business’s strengths and areas for improvement. This helps enhance its value and make it more appealing to potential buyers. Selecting the appropriate business valuation method is crucial for accurate valuations, ensuring that the method aligns with your specific business circumstances. Our business valuation service is designed to provide you with a comprehensive understanding of your company’s true worth. We delve into the intricacies of your business, identifying strengths and areas for improvement to enhance its value and appeal to potential buyers.
Why should I consider a business valuation?

Why consider a business valuation? Think of it as setting the stage for your success. Whether you’re planning to sell, fine-tuning your financial strategy, or exploring funding options, a business valuation gives you clarity and confidence. It helps simplify buy-sell situations, uncovers underperforming areas, and can even smooth over any shareholder disagreements or buyouts. Let’s make sure your business is ready for every opportunity! A business valuation can set realistic expectations for selling your business, verify financial planning, assist with obtaining finance, simplify buy-sell situations, identify areas of the business that are underperforming, and resolve shareholder disagreements or buyouts.
What benefits does electronic bookkeeping offer?

Electronic bookkeeping streamlines business record-keeping with features like automatic tallies, ready-made reporting, and real-time data access. It's also more environmentally friendly, saves storage space, and allows for easy backups to protect your financial records. The ATO is moving toward all-electronic records, making it a timely investment for your small business.
What does it mean to maximise business value?

It’s about more than just boosting financial performance; it’s about building brand equity, nurturing customer loyalty, and sparking innovation. Imagine your business being so appealing that buyers or investors can’t resist. That’s the goal we’re aiming for—making your business shine with potential. Maximising business value is about enhancing not just financial performance, but also strengthening brand equity, expanding customer loyalty, and fostering innovation. It includes preparing your business to make it as attractive as possible to potential buyers or investors.
What is a ‘value gap risk’?

Ever wondered about value gap risk? It’s the difference between your business’s current value and the target value needed to achieve your financial independence goals. We’re here to help with business valuation services that uncover your business’s true worth and pinpoint opportunities for growth. Let’s work together to bridge that gap and enhance your success!
What other services are included in your business valuation offerings?

Our comprehensive services encompass industry valuation benchmarks, where we compare your business’s performance against industry standards to provide valuable insights. Our business advisory valuations offer expert guidance tailored to your unique situation, helping you make informed decisions. We also provide value improvement solutions, focusing on strategies to enhance your business’s worth over time. Additionally, we conduct formal business valuations for a range of purposes, including selling, buying, estate planning, or succession planning, ensuring a thorough and accurate assessment of your business’s value.

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QPaint, Brisbane.
"Thought our business was challenge-free until Trekk Advisory opened our eyes. They highlighted unseen opportunities in our numbers. We've been on an upward trajectory ever since!"

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MC Scaffolds, Mt Isa.
"Trekk, recommended years ago, has been indispensable for our growth. Their brilliance and client-centric approach enhanced our business acumen and work-life balance considerably."

Ashley Haywood
Writer, Alstonville.
"Tony and the team at Trekk are an essential part of our business for over 10 years. We constantly challenge the team to demonstrate value and they consistently deliver."

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Red Earth Engineering, Brisbane.
"We've partnered with Trekk Advisory for a few years now and really value the personal attention and responsiveness we receive. They genuinely regard your business as if it was their own. Highly recommend.

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Saltair Modular, Brisbane.
"Trekk's unmatched advisory and accounting expertise over the last ten years has driven our consistent business growth. They've provided exceptional aid even in the face of pandemic challenges. Absolutely top-tier."

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Focussed LM, Brisbane.