There comes a time in the life of most businesses when it will require a formal valuation, so it’s important to be as prepared as possible for the best result.

There are a number of reasons a business might need to be formally valued, including:

  • To prepare for a purchase or sale
  • Family succession planning
  • To acquire a new loan
  • Partnership dissolution
  • Shareholder disputes
  • Finance restructuring
  • Family law
  • For insurance purposes

There is a range of different methods that can be used to value businesses; however the fundamental preparations remain the same. The below provides an overview of the main information required for a business valuation:

Financial Documents

You will need to demonstrate the business’s financial performance through documents such as profit and loss statements, Business Activity Statements (BAS), tax returns, cash flow statements, debt records, annual turnover and any existing forecasts. It is recommended to provide at least five years’ (and at least three years) worth of documentation for a more accurate evaluation.

Legal Information

For formal valuations, your valuer will require access to the legal details of the business and its ownership. This includes:

  • Business Name
  • Business Type
  • Australian Business Number (ABN)
  • Ownership and Structure
  • Franchise Agreement (If applicable)
  • Licenses and Permits
  • Details of any contingent liabilities
  • Contracts
  • Information regarding intellectual property (copyrights and patents)
  • Shareholder or partnership agreements
  • Employment contracts

Business Summary

The business summary provides an overview of market conditions, company procedures, plans, performance (both historical and current) and any other information relevant to operations. Examples of documents to provide in this section include marketing plans, rosters and customer service procedures.

Employee, Supplier and Customer Information

This section includes:

  • Role descriptions and details of remuneration for Directors and the family members of Directors.
  • General employee details such as contracts, pay, experience and performance history
  • Customer contact information
  • Supplier contact information, pricing and agreements.

With over 60 years of collective industry experience, Ian Hyman CA and Ross Mottershead CA are experts when it comes to business valuations. We can provide accurate valuations for businesses in the $1m to $100m turnover range for all purposes. To get started with your business valuation, contact us here today!


There’s no job too big or too small for the team at Hymans and we always strive to deliver on our clients specfific needs, so please reach out for an obligation free chat about how Hymans can help.


Level 9
171 Clarence Street

T 02 8270 4444


Level 11
167 Queen Street

T 03 8683 0167


Level 37
71 Eagle Street

T 07 3252 2943