Short answer
Start with three years of financial statements, year-to-date management accounts and tax returns. For a manufacturer, add the plant and equipment register with finance balances, revenue and gross margin by customer, stock and work in progress listings, key customer and supply agreements, the premises lease and a staff list. The engagement letter confirms the exact list.
Which financial records are needed?
| Document | Why it is needed |
|---|---|
| Profit and loss and balance sheets for three years | To see the trend in sales, margins and overheads, not one year in isolation. |
| Year-to-date management accounts, with the same period last year | To test whether the current year is tracking above or below the history. |
| Tax returns for the trading entity | To reconcile the accounts and identify items treated differently for tax. |
| Details of owner pay, family wages, related-party rent and one-off items | To normalise the earnings to what a new owner would actually earn. |
| Loan, overdraft and equipment finance schedules with payout figures | To move from the value of the business to the value of the shares. |
| Aged debtors and creditors at the valuation date | To test working capital against the level the business normally needs. |
Which operational records matter for a manufacturer?
- Plant and equipment register. Each machine's make, model, year, condition, whether owned or financed, and the payout figure. Add recent and planned capital spending.
- Revenue and gross margin by customer and product line. Ideally for three years, so concentration and margin trends are visible.
- Stock listing with ageing. Raw materials, work in progress and finished goods, with slow-moving and obsolete lines identified.
- Work in progress on jobs. For job shops and project work, the percentage complete and billing position of open jobs.
- Key agreements. Supply agreements with major customers, critical supplier terms, and any distribution or licence agreements.
- Premises. The lease, or details of the related entity that owns the factory and the rent it charges.
- People. An organisation chart, key staff and their roles, and the award or enterprise agreement that applies.
- Approvals. Quality certifications, customer approvals and food safety or product registrations that the business depends on.
The list shifts with the industry and the purpose. Our manufacturing business valuation page lists the documents we usually ask for, and how working capital affects a manufacturing valuation explains why stock and work in progress get so much attention.
Read the full guide
- Manufacturing business valuationHow a manufacturing business is actually valued in Australia: what we look at, what buyers pay for, and what quietly takes value away. Independent...
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- Engineering business valuationIndependent valuations for engineering consultancies, contract engineering and maintenance businesses, and precision engineering workshops. We look...
- How to value a manufacturing businessA manufacturing valuation is a sequence of tests, not a multiple. This guide follows the order a valuer works in, from defining what is being valued...
- How we value industrial businessesThe methods we use, what we analyse and what the report contains.
- Fixed fees, confirmed before we startFees are priced on annual turnover. No hourly billing.
Related questions
Do I need a plant and machinery valuation before you start?
No. A clear equipment register is enough for most business valuations. If you already have a plant and machinery valuation, we can use it as an input.
More short answers
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Last updated . General information only, not advice about your circumstances. A valuation depends on the facts of the business and the purpose it is for.