How to select a Business Valuation expert
It may be surprising that there are no formal restrictions to practice business valuation in Australia, unlike tax agents, auditors and business agents.
What qualifications?
Fortunately both Chartered Accountants and Australian Institute of Business Brokers have identified the need for a business valuation specialisation and each have developed separate accreditations.
Chartered Accountants have recently introduced a new CA Business Valuation Specialist accreditation. They recognised that business valuation is a specialist skill and not all Chartered Accountants have the necessary knowledge and experience to professionally undertake business valuations. The first group of CA Business Valuation Specialists has been accredited.
Australian Institute of Business Brokers created a Registered Business Valuers (RBV) course designed for valuing Small to Medium Enterprises in Australia.
Peter Wallace, Managing Director of Endeavour Capital, is the only person with both Chartered Accountants Business Valuation Specialist and Australian Institute of Business Brokers Registered Business Valuer qualifications. Peter has the technical skills as a Chartered Accountant Business Valuation Specialist and the market knowledge of a business agent to professionally value smaller and mid-market businesses.
Professional and ethical standards?
As a Chartered Accountant, I have professional obligations its codes of practice including Statements issued by Accounting Professional & Ethical Standards Board, APES 215 Forensic Accounting Standards and APES 225 Valuation Services.
What specialty?
Business valuation covers a wide variety of arears including expert’s reports for takeover bids, family law, partnership disputes and purchase price allocation. Just because a valuer has the necessary qualifications, does not necessarily mean that they are an expert in the type of valuation you are seeking. For instance, Endeavour Capital focuses on smaller and mid-market business valuations.
What cost?
Like many things in life, you get what you pay for. There is no point in going with a supposed bargain valuation only for it to be discredited.
The cost of a professional business valuation varies depending on its purpose, the size of the business and its complexity. Endeavour Capital can provide a fixed quote for a valuation prior to engagement.