Time for some good advice

THE COST: There's more to it than just a number on a page, so get good advice at the start of the journey..
THE COST: There's more to it than just a number on a page, so get good advice at the start of the journey..

Most couples don't enter a marriage expecting it to end in divorce, so it is no surprise that parties are often left scrambling to secure their assets and affirm their financial position when they find themselves having to come to terms with the breakdown of a marriage.

We know that there are many determinations to be made when it comes to dividing assets but understanding how much a business is worth better positions individuals to secure their business asset and allow for better decision making.

Getting a valuation boils down to more than just a number.

If you've spent time pouring your heart and soul (and savings) into a business, then you'll want to know how much that investment is worth. But there's more to it than just a number on a page. By conducting regular business valuations you'll have an up-to-date record of your business's value.

There is no question that up-to-date records can be beneficial in legal proceedings such as a divorce or even during a tax audit. An initial valuation is a great place to start in setting a benchmark to compare annual growth.

For those looking to secure their position post-separation, setting a benchmark value can help identify areas for improvement within your business, and ensure you are receiving fair value for previous efforts and contributions. Of course, there is more than one reason to get a business valued. Those looking to sell, expand, future proof, attract investors or renew insurance can all benefit from knowing the true value of a business.

What does a valuation involve and how do I know it's accurate?

There are many determinations to be made when it comes to dividing assets

If you're wondering what to look for in a good business valuation, you can always call the team at MGR to help set you on the right path. But as some general rules, individuals should be looking for the following:

  1. A transparent and repeatable process
  2. Clear statements about what is being valued and on what date.
  3. Clear statements about the type of value being considered i.e. market in fair value, liquidation value or value to the owner.
  4. Concise report of recent performance and an analysis of the business

If you're looking to understand your business better and find opportunities to improve value and promote growth, do not hesitate to contact the team at MGR on 5443 8888 or email mgr@mgr.com.au.

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