Business valuation in Victoria is a critical process for owners, investors, and advisors looking to determine the true market value of a business. Whether you’re buying, selling, restructuring, or planning for succession, a professional valuation provides clear financial insight and strategic direction.
An accurate business valuation allows stakeholders to make informed decisions, meet tax and legal obligations, and support long-term business planning.
What Is Business Valuation?
Business valuation is the formal process of determining a business’s economic value, based on its assets, earnings, liabilities, market conditions, and future potential.
In Victoria, businesses of all sizes—ranging from sole traders to large corporations—require valuations for a range of purposes:
- Business sales and acquisitions
- Capital raising and investment analysis
- Taxation and financial reporting
- Partnership splits or shareholder exits
- Litigation and family law proceedings
- Succession and estate planning
Common Methods of Business Valuation
Valuers use a range of methodologies depending on the size, structure, and purpose of the valuation.
Income-Based Approaches
These methods focus on the business’s ability to generate future income.
- Discounted Cash Flow (DCF): Projects future cash flows and discounts them to present value, based on the risk associated with the business
- Capitalisation of Earnings: Applies a capitalisation rate to the business’s ongoing earnings, ideal for stable, mature businesses
Market-Based Approaches
This method compares the business to similar businesses sold recently in the same industry or region.
Comparable Transaction Method
Uses sale prices of similar businesses to determine a likely market value.
Asset-Based Approaches
Best for asset-heavy businesses or when the company is being liquidated.
Net Asset Value (NAV)
Calculates total assets minus total liabilities. Often used for companies with tangible assets like manufacturing firms.
Key Drivers of Business Value in Victoria
Several factors influence a business’s value beyond its financial statements.
- Profitability and revenue consistency
- Customer base and market position
- Brand strength and goodwill
- Employee retention and leadership stability
- Industry growth and local market trends
- Licences, contracts, and intellectual property
- Regulatory risks and compliance status
In Victoria, geographic location, access to talent, and infrastructure also play a role, especially for service-based businesses.
When to Get a Business Valuation
Business valuations are not just for sale events. They provide a snapshot of value for planning, growth, and protection.
Selling a Business
A valuation helps set a realistic asking price and supports negotiations with buyers.
Mergers and Acquisitions
Used to assess the fair value of the entity being acquired or merged.
Tax and Compliance
The ATO may require a business valuation for capital gains tax (CGT) or transfer pricing purposes.
Succession and Estate Planning
Essential for transitioning ownership, either within a family or to external stakeholders.
Legal Disputes and Family Law
Courts often request independent valuations for divorce settlements, shareholder disputes, or insolvency matters.
Choosing a Business Valuer in Victoria
In Australia, business valuations should be performed by qualified professionals such as:
- Certified Practising Valuers (CPVs)
- Chartered Accountants with valuation experience
- Members of the Australian Property Institute (API)
- Australian Business Valuation professionals accredited by CPA Australia or CA ANZ
Choose a valuer with:
- Relevant experience in your industry
- Familiarity with Victoria’s economic and regulatory environment
- A track record of delivering clear, legally defensible valuation reports
How Much Does a Business Valuation Cost in Victoria?
Valuation fees vary based on business size, complexity, and the purpose of the report.
| Type of Business | Estimated Valuation Cost |
| Small business (turnover under $500k) | $2,000 – $5,000 |
| Medium business (turnover $500k–$5M) | $5,000 – $15,000 |
| Large business or complex structures | $15,000+ |
Special valuations for litigation, tax disputes, or restructuring may cost more due to the depth of analysis required.
Conclusion
Business valuation in Victoria is more than just a number—it’s a strategic tool for navigating change, attracting investors, and planning your next steps. By understanding the value of your business, you can approach negotiations, succession, or market changes with confidence and clarity.
Whether you’re preparing to sell, planning for the future, or meeting a compliance requirement, working with an experienced valuer ensures you receive a thorough and accurate valuation tailored to your goals.
