The reports costs depend on the size and complexity of the business being valued.
This pricing reflects the increasing complexity of larger businesses. Higher revenue businesses become more challenging to estimate value of, particularly where they are multi-divisional, cross-border, have high growth / volatility estimates or where a significant amount of future potential may be realised through current intellectual assets.
For more details, see Scenarios
Yes. The best results derive from companies that have a demonstrable track record, accurate financial reporting and a clear idea how their industry is heading.
We have performed simulating and modelling in most industries and are as comfortable with industries that participate in manufacturing, wholesaling and retailing products. We type transactions.
Our preference is not to provide services in industries where there are specialised modelling techniques that diversify from the core modelling methods. Such industries include anything involved in extraction, project finance or real estate. Also potential high growth companies seeking investment based on intellectual property are challenging to model because of the level of uncertainty.
Strategic Transactions complex certified valuations will be more useful in situations where we are assessing value for reasons other than sale value or benchmarking – including litigation or tax reporting, or where the client may require an expert witness.
Finally, there are certain types of company structure and operation that would make a complex valuation more applicable. These include: multi-divisional and transnational operations, those with high intangibles and those that would benefit from Real Options modelling where decisions and outcomes taken at multiple future points (defer, flexibility, expand, abandon) would affect present value of outcome.
There are two types of automated value appraisal services typically offered to business owners reviewing value or contemplating a sale.
Value Discovery builds on both sets of services in the following ways:
To achieve the above, Value Discovery utilises a more rigorous initial Q&A, a minimum 1-2 hour 1 on 1 interview process, qualitative industry and buyer volume / perception data.
This simulation is undertaken at arm’s length. We don’t tell our clients what they want to hear in order them to encourage them to go to market early.
Mark Ostryn became frustrated that entrepreneurs, many of whom had dedicated many years to building their businesses, didn’t have access to sufficient quality information to help them time and strategise for their business exit.
Mark, a Registered Business Valuer (RBV) and a master of Applied Finance, co-ordinated much of the available transaction information and set about building a model that would much more realistically simulate a business transaction than the existing models of taking precedent transactions and adjusting them based on a small number of parameters.
This simulation was developed and then tested against the actual sale results from hundreds of mid-market transactions across most key industries. The model will continue to be refined as a predictive tool as more transactions are entered into.
Firstly, an assessment is made of the businesses underlying asset base, historical performance, utilisation of assets and performance synchronisation against industry trends.
These parameters affect future forecasts and Value Discovery applies such parameters against a weighted determination of the most used valuation methodologies (FME, DCF) Such weights are based on the appropriate of the industry, product lifecycle, strengths and weaknesses of company etc.
Then a determination is made of likely buyer interest, and the motivation of one or more strategic buyers that could drive the sale price upwards.
Value Discovery then checks the result against both precedent transactions as well as industry-known rules of thumb that frequently are templates for transactions.
A wide array of both Australian and overseas data sources – both numerical and descriptive are utilised in order to refine the analysis. These include:
We are also continually working to broaden relationships with our strategic partnerships in order to access the maximum information available from private transactions.
In short, Value Discovery is perfect for this. Please contact us, if you would like to have periodic updates that would benchmark whether you, the owner, has been successful in continually creating value.
We’ll try our hardest but human unpredictability and irrational exuberance is no match for our modelling. Realistically, the price and terms that are finally agreed upon between buyer and seller reflect the amount of competitive tension within the transactions and the keenness of the buyer and seller to transact rather than walk away. No amount of crystal ball gazing can predict that. Ultimately, what we are trying to achieve is to tell the seller what we believe a fair market price is for the business.
This could range from over-optimism to sheer falsification. Yes. Garbage in, garbage out! Value Discovery does not include a forensic verification process as part of our process- but we always state the assumptions behind the valuation.
We are absolutely committed to ensure that your data remains absolutely confidential to us. It will never be shared with third parties, and we also ask our clients to use the information derived in the way that it was intended.
Value Discovery is produced simply as guidance to business owner that simulates the current and prospective value of their business. It does not seek to identify or verify all the matters which an audit, extensive examination, formal valuation or due diligence investigation might disclose. In short, if the data provided is inaccurate, Value Discovery has no means of verifying it and thus it has no legal standing. Therefore it should not be presented to third parties (buyers, valuers or any other “interested party”) as “proof.”
The original author of your report is on call to answer any questions you have about it. No question is too simple or dumb for us, and we’ll give you the answers you need to help your gauge the performance of your business so you can make it thrive.
Most of the development work undertaken on Value DiscoveryTM to date has been in house. Now that Value Discovery has launched we are excited to work with other professionals who have day to day contact with business owners in order to help expand their services and provide benefit to those business owners. Please review our Accountant partnership programme.
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