Disclaimer

General information only

The guides, examples and tools on this website explain how industrial businesses are usually valued and what tends to move their value. They are general information only. They do not take your circumstances into account, and they are not legal, taxation or financial advice. Which method suits a particular business depends on that business and on why the valuation is needed, and it is settled in the engagement for each matter.

This disclaimer applies to everything published on this website by Valuation Group Pty Ltd, trading as Industrial Business Valuations, and forms part of our terms of use.

Do you give financial or investment advice?

No. We prepare business valuations. We do not hold an Australian financial services licence, and nothing we publish or say is financial product advice or a recommendation to buy, sell, hold or restructure a business or an interest in one. ASIC states that a person who wants to run a financial services business generally needs to be authorised under an Australian financial services licence.

Whether you need a valuation for a tax, legal or transaction purpose, and at what date, is a question for your accountant, tax adviser or lawyer, who can take your circumstances into account.

Is the value estimator a valuation?

No. This estimate is not an independent business valuation and should not be relied upon for legal, taxation or transaction purposes.

The value estimator works from a handful of answers. It cannot see your normalised earnings, the age and condition of your plant, the work in progress on your floor, the terms of your largest customer contract or the payout figure on your equipment finance, and any one of those can move value more than the factors a short tool can score. The valuation readiness check measures whether your records are ready for a valuation, not what the business is worth.

What is a valuation, and what is it not?

A valuation is an independent opinion of value, at a stated valuation date, for a stated purpose, of a stated interest, based on the information supplied and the assumptions set out in the report. Change any of those and the conclusion can change. A buyer's offer reflects its own plans, funding and deal terms, so a valuation does not forecast what any one buyer will offer, and we do not promise that a buyer, lender, tax authority, court or other party will accept it.

The interest matters as much as the figure. Enterprise value, the value of the operations before debt, is not what the owners receive: equipment finance, surplus cash, working capital above or below a normal level and employee provisions such as long service leave sit between enterprise value and the value of the shares. A minority parcel is not always worth its proportion of the whole. How we value explains the steps.

What information does a valuation rely on?

A valuation relies on financial statements, management accounts, registers, contracts and explanations supplied by the business and its advisers. Unless the engagement letter says otherwise, we do not audit or independently verify that material, and a valuation is not an audit, a due diligence review or a fraud investigation.

We do test what we receive for consistency, for example reconciling the equipment register to the balance sheet and the work in progress schedule to job costing, and the report states what we relied on. Before the final report is signed, the client signs a representation letter confirming that the key information supplied is complete and accurate.

Plant, machinery and property

We value the business. A formal plant and machinery valuation for finance, insurance or a sale of assets is a separate discipline done by a plant and machinery valuer, and land and buildings are valued by a property valuer. Where such a valuation exists, we can use it as an input. A figure in an equipment register, an insurance schedule, a finance payout letter or an auction estimate is not a value of the business.

Can a report be used in court?

Not unless the engagement letter expressly provides for it. A report prepared for commercial purposes is not a court expert report. Court or tribunal work is a separate engagement with its own scope and fee, and any expert report must meet the rules of the court or tribunal concerned. Nothing limits compliance with a legal disclosure obligation, a subpoena or a court order.

Examples and the sample report

Examples on this website are labelled as illustrative, and the excerpt on our sample report page is labelled as a fictional sample. Their figures are invented to show method. They are not drawn from client matters, and they are not evidence of the value of any business, industry or transaction.

References to law, tax and industry conditions

Where we refer to legislation, tax rules, regulators, awards or industry conditions, we do so in general terms as at the date shown on the page. Rules change and their application depends on the facts. Check the current source, and speak to your adviser, before you act.

Links to other websites

Links are provided so you can read the original source. We do not control those websites, and a link is not an endorsement.

Liability

Nothing in this disclaimer excludes, restricts or modifies any right or remedy under the Australian Consumer Law that cannot lawfully be excluded, restricted or modified. Subject to that, and to the extent the law allows, we are not liable for loss arising from reliance on the general information on this website. The limits that apply to a valuation are set out in the engagement letter for that matter.

Questions about this disclaimer can go to hello@industrialbusinessvaluations.com.au or 0433 475 518 (Mon to Fri, 9am to 5:30pm AEST). See also our privacy policy.