Case Studies

We believe in building strong relationships with our professional partners and knowledge sharing. We regularly publish Case Studies, using scenarios to illustrate the sometime complex interplay of business, finance, regulation and ethics facing the accounting professional today.

Buy/Sell Insurance and Business Valuations

Buy/Sell Insurance Succession Planning Balance Sheet Reporting

This mid-sized construction company took a pro-active approach to insuring Directors. By obtaining an independent business valuation report on a yearly basis, the company avoids any future disputes amongst Director’s and their families.

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SMSF Reporting and Business Valuations

Self-Managed Super Funds Unit Trusts Balance Sheet Reporting

A SMSF owns units in an unlisted unit trust, which in turn owns a moderately sized software company. For reporting purposes the SMSF needed to establish the market valuation of the units held.

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Professional Independence and Business Valuations

Restructure CGT Independence

A discussion with the ATO helped one Accountant elect to engage an independent business valuer. The Accountant was in the process of restructuring a clients business and determined the business held no goodwill. While his assessment was correct, an independent valuation was sought to allay any possible future issues with the ATO.

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Divorce and Business Valuations Explained

Divorce Single Expert Witness Report Family Law

Many people going through the process of divorce are business owners. Family businesses are usually small and can be complex to value. Unfortunately placing a value on a family business is not clear cut and can be an area of contention for many people. This paper looks at the options available which, if approached in the correct way, can result in a cost effective outcome.

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Partner Buy-outs and Business Valuations

Independence Partnership Dissolution Valuation Methodology

Two business partners operate a fitness centre through a company structure. The Directors have chosen to end their partnership as one wishes to leave the business. The firm’s Accountant has been asked to undertake a valuation of the business to enable the buy-out to proceed. Naturally, each of the Directors are hoping the report delivers a different result, leaving their Accountant conflicted.

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Small Business CGT and Business Valuations

CGT Small Business Concessions Restructure Succession Planning

An independent business valuation compiled by an expert helped one accountant crystallise a capital gain while their client was still within realm of the ATO small business CGT concessions. The subsequent sale of the business resulted in non-concessional CGT only being paid on a smaller portion of overall the gain.

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Professional Indemnity Insurance and Business Valuations

Professional Indemnity Insurance and Business Valuations

Professional Indemnity Insurance Buying a Business Independence

A valuable relationship of professional trust, built up over time, often finds Accountants being asked by regular clients to provide services outside their regular sphere of expertise. Common situations include advising in relation to the purchase or sale of a business where perceptions of bias may call into question the independence of financial analysis. Another issue, often not as apparent, concerns the delivery of professional services and exposure in relation to the coverage afforded by PI insurance.

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