What is Valued

The  hypothetical sale of a Company to arrive at a 'Value" for that Company can be achieved in two ways.  By sale of Assets (without the sale of the corporate entity) or by sale of Shares in the Corporate entity.  (Businesses that are Sole Traders are assessed as Asset Sales as there is no corporate entity)

Our Fair Market Value Appraisal Reports reflect a hypothetical ASSET SALE of  the Business which involves assessment of the two elements that make up the business namely the Tangible Assets - Plant & Equipment and Intangible Assets - Goodwill. 

The sale or transfer of Shares (in a private or company) as a method for disposing of the business assets is considerably more complex because the Buyer is assuming the current and future Llabilities of the legal entity that the shares relate to and is subject to a complex set of Tax and Corporation laws related to the sale.  Please consult your Accountant/Lawyer if contemplating purchase or sale (in full or in part) of any business by transfer of shares. Tax and Legal advice must be given by qualified professionals based on individual circumstances.

WHAT IS BEING VALUED IN OUR FAIR MARKET VALUE BUSINESS REPORTS:

The Fair Market Value  Business Appraisal Report and the analysis of value assumes an “Asset Sale” and does not reflect the “Share Value” of the Company or any interest in any Partnership or Trust  associated with the Company.  This methodology presents a 'level playing field' where comparisons with actual sales of like businesses in the marketplace can be made objectively to arrive at a supported conclusion.

The reported value does not include “Current Assets” such as Cash, Accounts Receivable, Prepaid Expenses and other Llquid Assets that would normally show up on the Accountants Balance Sheet for the Company and would vary from business to business.

It does not take into account the Intellectual Property of the Bsiness or any Partnership or the Cost to Create this Intellectual Property which in relation to Business Systems, Trade Marks or Patents  could vary  considerably from business to business.  (Specialised reports are able to be provided for these)

FMV Asset reports do not take into consideration any of the Companies Liabilities including any loans to the Directors (or others) of the Company by the Company.  Reports do include an unsubstantiated estimate of the Fair Market Value  of the ‘Tangible’ (Physical) assets that a Seller would receive  and  the Seller woul be responsible for fpaying off any debts that the Company would owe on these assets at the time of sale.

FMV business asset reports do not take into consideration any Real Estate that the Company owns and considers this to be an “Investment Asset”.  A separate Valuation on any ‘real property’ should be done by a Licensed Property Valuer*. 

Please call 07 3010 9711 if you require clarification of any of these points.

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