What is a business valuation?
A medical business valuation is where the economic value of a medical business is determined, which can help establish the fair value of the company. The valuation incorporates the business’s value, intangible assets, and securities that are required for taxation, disputes, accounting, and transaction reasons.
We recognise the need for the business valuation industry to continually develop as fair value reporting and the International Financial Reporting Standards (IFRS) gains global acceptance.
You need to stay up-to-date with current standards, work practices, and resources if you are providing valuation services to allow you to support professional development and provide insight.
The Accounting Professional and Ethical Standards Board (APESB) sets business valuation standards and governs all engagements and assignments is Australia. These standards apply to all accountants who work in the government and corporate sector.
There is no single way to determine what a business is worth, as a business’s value can be different to different people. One person may believe a business is worth more because of its connections to the community, while another may believe a business’s value is defined by its historic income. Economic conditions can affect how people view a business’s worth, and when there are fewer jobs, increased competition causes a business’s selling point to rise.
A business’s value can also be affected by the circumstances of its sale. If a business has a well-planned effort it will attract more buyers and the assets of the business will sell faster at auction.
Melbourne medical business valuation
There are many reasons to find out the value of your Melbourne business, as it is necessary when you are:
- Selling shares in a business
- Buying or selling a business
- Finding your own net worth
- Attracting investors
- Getting a business loan
There are several different ways to perform a business valuation, with each method having its own advantages and disadvantages, and some being more complex than others. Business valuation usually uses a combination of different methods.
It is best to get a professional valuer or business broker to assess your business, as buyers and sellers can have their own ideas about how much a business is worth. A business’s overall value can be can become more complete and negotiations can be sped up if you have a balanced and independent business valuation.
- We will provide supporting material and appropriate reasoning to support any assumptions in the report.
- It will only take 7 to 10 days from receiving instructions to begin the business valuation to finalise each report
- Reasoning and appropriate documentation will be given to support clearly set out options
Our Melbourne-based business valuers can give evidence to support a report when requested and prepare all reports to a court standard.
We provide business valuations to a number of different industries, including:
- Medical practices such as specialist, GP’s and other allied health practices
- Manufacturing businesses
- Retail businesses
- Law firm businesses
- IT business valuations
- Café business valuations
- Hospitality business valuations
- Hotel business valuation
- Other accommodation valuation
- Building, engineering, and construction firms
- Restaurant business valuations
- Insurance broker business valuation
- Wholesale trade business valuations
- Valuation of royalty income
- Mining business valuation
- Transport business valuation
- Financial planning practice valuation
What information is needed for a medical business valuation
For your financial advisor or valuer to correctly value your medical business, they will need to see at least five years of financial statements, if possible. Your business’s assets and operations may need to be checked during a visit to the premises. Intellectual property, goodwill and future outlook of the business will also be considered as intangible assets, and your business will be compared to other similar businesses on the market.
You will receive an answer to the following questions with a complete medical business valuation:
- Who is the valuation for (lender, investor, buyer, seller, or other reasons)?
- How was the business started?
- What is the business’s reputation?
- How long has the business been in operation?
- Have the business’s goals changed?
- What is the facilities condition?
- Are any specialist skills required to run the business?
- How is staff morale?
- Who is the business reliant on?
- What are the employee pay rates?
- What are the staff job descriptions?
- Are environmental and work health and safety laws being met by the business?
- Are all necessary permits, licences, and registrations held by the business?
- Are there any long-term contracts held by the business?
- How long are any contracts and how much are they worth?
- Does the business have any lease arrangements?
- Is the business part of any current or pending legal proceedings?
- Does the business have sufficient cash flow or working capital?
- How much of a profit is your business making?
- Does your business have any tangible assets, such as buildings, machinery, or equipment?
- What is the book value of your business’s stock?
- What is your business’s annual turnover?
- Has your business’s turnover and profit increased, decreased, or remained the same?
- Can your cash flow support a loan?
- What is the value of your business’s current assets?
- Can shareholder dividends be paid with your business’s current working capital?
- Does your business have any liabilities?
- Are any of your business’s stock obsolete or unsellable?
- Does your business have any goodwill attached to it, and if so, can it be transferred to a new owner?
- Are intellectual property and other intangible assets for sale?
- What is your business’s long-term and short-term industry outlook?
- Is your business’s market growing, shrinking, or steady?
- Does your business have any competitors?
- Does your industry have any entry barriers?
- Does your business have any competitive advantages?
- Are there any specific economic factors that will affect your business directly?
- What is your business’s market share?
- Will the departure of the current owner or managers have any impact on the business?
- What is the market price of similar businesses?
Contact Medvisor for more information on medical business valuations in Melbourne.