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.

START-UPS AND BUSINESS VALUATIONS EXPLAINED

Start-Ups Methodologies Venture Capital

The dawn of the digital age, and the evolution of the smart-phone as an essential part of daily life, has seen a quantum increase in the number of start-up businesses. But the challenge every start-up entrepreneur has faced remains: mounting a convincing and believeable pitch that will secure the much-needed funding to germinate the seed of a business idea and grow it into a full-fledged, successful business operation. This Bizval paper is intended to shed some light on aspects of this oft-confusing process.

read more

Minority Discounts and Business Valuations

Minority Discounts Partnership Dissolution Shareholder Value

The resignation of a partner in a well-known law firm triggered disagreement as to the value of the departing partner’s shareholding. Fortunately, the firm’s shareholding agreement foresaw this eventuality. It specified an independent business valuation be commissioned to resolve any dispute. The shareholding in question represented a minority interest, adding a further layer of complexity. Discounts to the pro-rata valuation needed to be applied.

read more

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.

read more

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.

read more

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.

read more
Divorce

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.

read more

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.

read more

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.

read more
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.

read more