Traditionally, financial information has been seen as the primary source of information to value businesses.

The updated International Valuation Standards (IVS)(now being widely adopted by professional associations) say historical performance can ‘give guidance’ for future expectations and should only be ‘part of a business valuation engagement’.

IVS requires for business and business interest valuations ‘economic and industry’ factors should be considered. Matters such as location, political outlook, government policy, exchange rates, inflation, interest rates, market activity, nature of the business and location of customers and suppliers are factors important to valuing businesses.

Those parties seeking business valuations should ensure more than just financial information is investigated if a valuation engagement is to be reliable for important decision making.

If you need more information, talk to us.
Negotia Group

1300-551-757
Disclaimer: The views expressed in this article are those of the Writer. The information is not meant to be exhaustive. Readers are responsible for making their own inquiries and assessments as to the truth and accuracy of all the information given and should seek advice from professionals. No liability (in contract, tort or otherwise) will be accepted for any loss or damage incurred as a result of reliance upon any material contained in this publication or any information or advice provided in this publication or incorporated in it.

Kevin Lovewell
M: 0401 308 385
P: 1300 551 757
E: Click here to contact Kevin Lovewell
Member & Registered Business Valuer
Australian Institute of Business Brokers

Jessica Holbrook
P: 1300 551 757
E: Click here to contact Negotia Group
Business Analyst