Lloyds Corporate Brokers has formed a unique collaboration with Advisory Partner, a mid-market firm that delivers financial clarity through solutions-focused accounting, advisory, valuations and tax services.
The joint venture provides business valuations for all classes of Private and Publicly owned businesses, up to a valuation of $100,000,000. We conduct market evaluations of business assets and goodwill for the purposes of:
Benchmarking business performance for a business plan or investment portfolio management
Definition: Benchmarking is the process of comparing a business's key performance indicators (KPIs) against industry standards or best practices. For investment portfolio management, it refers to comparing the performance of investments against a market index or peer group.
Explanation: This provides insight into how well a business is doing relative to competitors or the market at large. In business plans, benchmarking helps set realistic goals and measures progress, while in portfolio management, it helps gauge the effectiveness of investment strategies. Benchmarking can cover revenue growth, profitability, cost efficiency, and customer satisfaction.
Partnership dissolutions, disputes, buy-outs, assistance with resolving disputes between shareholders or business partners
Definition: This is useful for where business partners or shareholders disagree or need to terminate their relationship, whether through buy-outs, dissolution, or dispute resolution.
Explanation: In business, conflicts between partners can arise over finances, roles, or vision for the company. Dissolutions may involve selling or dividing assets, while buy-outs allow one partner to purchase the interest of the other. Resolving these disputes often requires legal and financial expertise to ensure a fair outcome and minimize damage to the business.
Marriage breakdown, property settlements, divorce proceedings
Definition: This relates to the division of property, assets, and liabilities during a divorce or separation.
Explanation: When a marriage ends, property settlements involve dividing joint assets like real estate, businesses, and investments. Business owners may need to determine the value of their business to equitably split it between spouses. Divorce proceedings often involve financial settlements that require valuations to ensure fair distribution, sometimes leading to the sale of business interests or other assets.
Succession planning, deceased estates
Definition: Succession planning involves preparing for the transfer of business ownership or leadership. Deceased estates relate to the management and distribution of a person's assets after their death.
Explanation: In businesses, especially family-owned ones, succession planning ensures a smooth transition when an owner retires, passes away, or leaves the business. It may involve grooming successors or selling the business. In the case of deceased estates, determining the value of assets, including businesses, is crucial for distribution according to the will or legal requirements.
Legal disputes, property resumptions, compensation payouts
Definition: These are legal matters where disputes over property, business ownership, or compensation are settled either in court or through arbitration.
Explanation: Legal disputes can range from disagreements over business contracts to ownership claims. Property resumptions occur when a government or authority acquires private property for public use (eminent domain). Compensation payouts relate to the fair market value being paid to the property or business owner. Business valuations are often needed in these cases to ensure fair compensation for lost property or income.
Establishing proper value when buying or selling a business
Definition: This refers to accurately determining the fair market value of a business during a sale or acquisition.
Explanation: Proper business valuation is critical to ensure that buyers don't overpay and sellers receive fair compensation. Various methods can be used. This includes asset based, income based or market comparison approaches. Valuations take into account revenue, profitability, assets / liabilities and growth potential to set an appropriate price.
For transactions such as sales, capital raising or taking on a partner
Definition: These are business events where ownership changes or capital is raised through external investment or new partnerships.
Explanation: Accurate valuation is vital when selling part or all of a business, raising capital through equity or debt, or bringing in new partners. In such transactions, a clear understanding of the business's worth helps negotiate favorable terms, ensuring that the sale or investment aligns with the business's financial and strategic goals.
Tax purposes as part of a restructure or issuing employee incentives
Definition: Re-organizing a business's structure for tax efficiency or issuing employee stock options or shares as part of compensation.
Explanation: Valuation is needed to determine tax liabilities or benefits when restructuring the business (e.g., merging subsidiaries) or issuing equity to employees. Employee incentives like stock options need to be valued correctly to ensure compliance with tax regulations and that the business and employees are fairly taxed on these incentives.
Support critical, strategic decision making, such as planning an acquisition or disposal.
Definition: Using business valuation and financial analysis to guide important decisions such as purchasing, merging, or selling a business.
Explanation: When a business is planning to acquire another company or sell assets an accurate valuation helps determine whether the deal is strategically sound. It aids in assessing the potential return on investment, understanding risks and setting negotiation terms. Disposal of assets can also include divesting non core segments to streamline operations.
Valuation is a complex assessment and involves professional expertise and judgement. All businesses are unique and face different competitive pressures. The value of any company or asset is intrinsically linked to the future income it will generate and future income streams are generally uncertain.
Valuation requires an in-depth understanding of the asset being valued, the market in which it operates, the company that owns it, and its competitive strengths and weaknesses. It requires careful analysis of financial and non-financial information and assesses other factors, such as legal and regulatory environments.
Lloyds Brokers and the Advisory Partner team have extensive experience in valuing companies and assets across a range of industries. We have broad sector knowledge derived from consultancy, business sales, M&A and executive management experience to determine the appropriate valuation methodology to provide well-informed, insightful, robust and transparent valuation opinions.
Brett Plant - Director Advisory Partner
Brett has more than 38 years' experience delivering high quality outcomes for clients. He enjoys working collaboratively with clients to achieve their desired outcomes. Building relationships and developing a deep understanding of clients' businesses is the backbone of Brett's service philosophy.
Qualifications
Bachelor of Business
Master of Commerce
Fellow Chartered Accountant
Business Valuation Specialist
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If you own a business in the import/wholesale, manufacturing, distribution, contracting, services, or online sectors, talk with Lloyds Brokers for advice on how to value, buy or sell a business.
Contact the experts at Lloyds Business Brokers, Australia's industry-leading corporate broker on 1300 366 943.
