Challenging Business Valuations in Family Law

Challenging business valuations in Family Law

I recently gave a presentation for Legalwise Seminars on Understanding and Challenging Business in Family Law at the Hilton Hotel Sydney. Audience participation really picked up on the two main areas of Future Maintainable Earnings valuations being the valuators subjective opinion on the level of … [Read more...]

Checklist for the Evaluation of an Internet Business

I recently received an email asking us to value an online business and I developed a list of information that you should get to ascertain whether it is worth continuing in your investigations of the business. When we are examining a business for business valuations or commercial litigation, we … [Read more...]

Factors in Determining the Level of Future Maintainable Earnings

Florist

Valuations are dependent upon a number of subjective assumptions. One of the main assumptions involves the level of expected future profitability. It is common to see as a basis for future earnings the average of the previous three years. Whilst the average of the previous three years may be … [Read more...]

Understanding the Capitalisation Factor – Business Valuations

The most common method of valuing small profitable businesses is the Future Maintainable Earnings (FME) method. The formula for calculating the value of a business is: Future Maintainable Earnings X Capitalisation Factor = Value of Business The capitalization factor is defined as: “any m … [Read more...]

Future Maintainable Earnings – Business Valuation Methodologies

balance-sheet-calculator

The Future Maintainable Earnings (FME) methodology is the most common method of valuing profitable businesses in Australia. The future maintainable earnings methodology is a derivation or simplification of the Discounted Cash Flow (DCF) method. Whilst the discounted cash flow methodology is … [Read more...]

Surplus Assets in Business Valuations

FishingBoat

As part of the process of valuing a company, we revalue the balance sheet of a company from book value to market value and then separate the assets and liabilities of the company into three categories: Business Assets and Liabilities Surplus Assets & Liabilities Financing … [Read more...]

Business Valuations – Value to the Owner?

The purpose of business valuations in Family Law is ascertain "the value to the owner but how does the "value to the owner" differ to that of "fair market value"? Fair Market Value Firstly it is necessary to explain the definition and application of “fair market value”. The definition of fair ma … [Read more...]