Business Valuations

Businesses Valuations in the NT

What is a Business Valuation?


A business valuation is the process of calculating a fair Market Value for your business if you were to exit at the time of the valuation. Market Value is “the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion” – International Valuation Standards.


Most business values have either a strong relationship with the profits a future owner is likely to receive if they were to own and run the business standing in the place of the current owner, or alternatively, they may reflect the value of the fixed assets of the business – ie Plant and Equipment, premises fit-outs and trading stock.

How is a Business Valuation Undertaken?


A range of financial data is reviewed including trading statements, tax returns, sales and purchase records and staff payments. The valuer will also ask a broad range of questions about the business itself to get an understanding of its history, operations, underlying culture and trading outlook in addition to the general economic environment it operates in and its industry. Key points of difference are noted along with any significant weaknesses and upcoming opportunities and threats.



All of this data is compiled and analysed and then Market Sale Data is sourced from our network of brokers and business valuers on a range of comparative businesses. All of this is used to produce an evidence based report which accurately describes the current value of the business along with the reasoning to substantiate that value.

Appraisal or Valuation?


Both Appraisals and Valuations look at the Market Value of a business – the difference is in the depth of research undertaken and detail in the report. An appraisal is generally done in a couple of hours, reviewing core documents only and filling in the information gaps from an interview with the owner. Appraisals generally provide ranges of fair value rather than a specific dollar amount. They are intended for the recipient to use as a guide in moving forwards – eg Should the owner proceed to market, this is what would reasonably be expected. Appraisals generally only have a limited report which may be limited to a short email discussing a summary of the appraisal value.



Valuations on the other hand entail a far greater degree of investigation, detail and time. They will generally take 15+ hours and will provide for a comprehensive evidence backed report of up to 100 pages (with supporting documentation). Valuations will generally provide a specific dollar amount as at the Valuation Date rather than a range. Due to the degree of work involved, valuations are significantly more expensive than appraisals. Valuations are used where there is significant reliance on the figure – ie Family Law proceedings, Tax Office issues and business restructures or decisions to purchase a business. 

Registered Business Valuer

Registered Business Valuer NT

Andrew Hahn is a Registered Business Valuer – RBV S202105

Registered Business Valuers specialise in the provision of Market Based Valuations of SME businesses up to $20 million. All of our valuations are undertaken in compliance with the International Valuation Standards. Market based valuations are the preferred approach for most business valuations under the International Valuation Standards to determine Market Value. This is a key point of difference from the Income Approach historically used by many accountants who generally don’t have access to Market Data.


Professional Indemnity is held covering valuation work. Market data is sourced from a wide network of other Business Brokers and Registered Business Valuers around Australia to ensure valuations are kept current as economic conditions change. If a particular valuation is outside of our sphere of expertise, we have an excellent network of other valuers who cover most specialities that we can refer onto.

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