How do you work out the multiple?

Some valuations, but not all, use a multiple of earnings approach. In a limited number of industry sectors with many participants, market transactions give a guide to likely multiples, though even then there is a range. For other industries the multiple needs to be calculated as a measure of the risk profile of the business and its earnings. Understanding the characteristics of the business and its earnings is essential to getting the multiple right, which is where the valuation process makes the difference.

What happens if a business valuation is contested?

Hayes Knight are expert, independent business valuers. Greg Hayes, the principal business valuer, is a seasoned expert witness, so valuations are prepared to be supportable if they are challenged by regulators, opposing legal counsel, or in a commercial or family dispute.

Are your business valuations produced by software?

No. Clients receive an expert business valuation, not a software-generated number, because software is neither an expert nor accountable for outcomes. Hayes Knight deliver APES 225-compliant valuations using a process refined over decades of experience across multiple industries, designed to fulfil the purpose unique to each engagement.

How quickly can you turn around a business valuation?

Depending on complexity, most valuations take between three and four weeks, as the process is important and takes time to complete properly. Hayes Knight can discuss what is possible and by when for a specific engagement.

How much will a business valuation cost?

As with most advisory services, the cost depends on the scope and complexity of the assignment, but Hayes Knight always quote a fixed fee upfront. A quick turnaround, low-cost valuation may not stand up to scrutiny, so clients get what they pay for.

Can I just use financials for a valuation?

Valuing purely on financial statements is a naive approach because financials don't always accurately reflect the business. Both financial and non-financial indicators need to be considered. For example, many SMEs accelerate expenses or ignore provisions for tax purposes, and events like winning or losing a major contract matter. It is the underlying, normalised or maintainable earnings that count, which will almost always differ from a simple net profit assessment.

Valuation services for accountants

Not all business valuations are the same.

A business valuation is an independent expert opinion on the value of an asset at a point in time. The credibility of the valuation - its independence, methodology and reasoning - is what underpins its purpose to substantiate a position with the ATO, in dispute or family law matters, and in transactions and investments.

Hayes Knight are expert business valuers - our lead business valuer, Greg Hayes, literally wrote the book for the profession on SME valuations (A Practical Guide to Business Valuations for SMEs).

When your clients need a business valuation they can rely on, professional accountants, lawyers and advisers turn to Hayes Knight.

Having a business valuation report and having a business valuation report that is supportable are not the same. A valuation without integrity is open to being contested by the regulators, by opposing legal counsel, and can easily become the centre of a commercial or family dispute.

Hayes Knight have over 25 years experience delivering business valuation services across Australia for a myriad of industries and business assets.

Headed by Greg Hayes, Hayes Knight’s corporate finance team are experienced, knowledgeable and commercial.

The credibility of our valuations is the reason why we’re the trusted experts for accounting, legal and advice firms.

Some valuations, but not all, use a multiple of earnings approach.

In a limited number of industry sectors and where there are a large number of participants, market transactions give you a guide to what multiples might be. But even in these sectors there is a range.

For other industries the multiple needs to be calculated. The multiple is a measure of the risk profile of the business and its earnings. If you don’t understand the characteristics of the business and its earnings, it’s unlikely that you will get the multiple right. This is where the valuation process makes the difference.

Hayes Knight are expert, independent business valuers.

Greg Hayes, our principal business valuer is a seasoned expert witness.

Your clients are paying for an expert business valuation and that’s what they will get. Software is not an expert nor is it accountable for outcomes.

Hayes Knight are expert business valuers that deliver APES 225 compliant business valuations using a process that we have refined over decades of experience across multiple industries.

If you client needs a business valuation it is seldom to give them a calculated number. We deliver business valuations that fulfil their intended purpose unique to that engagement.

Depending on complexity, most valuations take between 3 and 4 weeks. Process is important and the process takes time to complete.

Talk to us about what is possible and by when.

As with most advisory services, the cost of a business valuation depends on the scope and complexity of the assignment. Cost will vary based on this however we always quote a fixed fee upfront.

Clients get what they pay for. A quick turnaround, low cost business valuation may not stand the test of scrutiny.

Valuing purely on financial statements is a naive approach to valuation work - financials don’t always give an accurate reflection of the business.

It's a business valuation and as such, financial and non-financial indicators need to be considered.

For example, many SMEs focus on tax when the annual financial statements are prepared. Expenses may be accelerated for the tax benefit, provisions may be ignored. Or what is the effect of a business winning or losing a major contract in the last financial year? When a business is being valued it is the underlying earnings that are important - net profit should not be confused with normalised or maintainable earnings. Normalising earnings will almost always be different to a simple net profit assessment.