CAPITAL GAINS TAX — BUSINESS VALUATIONS

Independent CGT business valuations prepared for ATO review.

A valuation of a business, shares or units may be required for CGT purposes, depending on the transaction and circumstances. We prepare independent, fully reasoned valuations — current or retrospective — documented for ATO review. Your accountant or tax adviser should confirm the tax treatment, eligibility and applicable valuation date.

Request a CGT Valuation Call 1300 710 000

We respond to every enquiry within one business day.

HOW WE WORK

Business Valuations prepared in accordance with ATO guidelines.

Prepared to ATO guidelines

Reports set out the methodology, evidence and reasoning relied upon, in the form the ATO’s market valuation guidance calls for.

Current or retrospective

Valuations as at today, or as at a historical date where the CGT event occurred years ago and was never documented.

Independent of the transaction

We do not broker, advise on, or take a fee contingent on the outcome of any sale, restructure or dispute we value.

Reasoned, not asserted

Every method selection, adjustment and discount is explained. A conclusion without reasoning is an opinion, not a valuation.

Fixed fee, agreed first

Scope, fee and timeframe confirmed in writing before work begins. No variation unless the scope changes and you approve it.

Supported if it is queried

We retain the working papers and evidence file, and the valuer who signed the report is available to explain and support it.

WHEN A VALUATION MAY BE REQUIRED

When a business valuation may be required.

There are various reasons a business valuation may be required for CGT purposes. The need for a market valuation depends on the circumstances and any applicable exemptions, concessions or rollovers.

Transfers to related parties

A market valuation may be required where parties are not dealing at arm’s length. Your accountant or tax adviser should confirm the application of any market value substitution rule and the relevant valuation date.

Small business CGT concessions

Valuation evidence may assist an adviser assessing the maximum net asset value and active asset tests under Division 152. Eligibility and tax treatment should be confirmed by your accountant or tax adviser.

Restructures and rollovers

A valuation may be required when business interests are transferred between entities or within a group. Your accountant or tax adviser should confirm any rollover conditions and tax consequences.

Buy-ins, buy-outs and equity issues

A valuation may assist when partners join or leave, shareholders transfer interests, or equity is issued to key people. We consider control, minority position and marketability where relevant.

Deceased estates and succession

A valuation of shares, units or business interests may be required for estate or succession matters, depending on the circumstances.

Pre-CGT interests

A valuation may be required at a historical testing date for certain pre-CGT interests. The tax classification of the interest and any continuity requirements should be confirmed by your accountant or tax adviser.

Employee equity and incentive plans

A valuation may be required for shares or options in an unlisted company at the relevant grant or acquisition date. Your advisers should confirm the applicable legal and tax treatment.

Self-managed superannuation funds

A valuation may be required where a fund acquires, disposes of or holds an interest in a private company or trust.

THE EVIDENCE STANDARD

Evidence that explains the valuation.

A defensible valuation report sets out the methods, evidence, assumptions and reasoning behind the assessed market value.

Limitations of informal value estimates

An earnings multiple applied without explaining where the multiple came from, or why it fits this business.
An internal management estimate prepared for another purpose, later repurposed as tax evidence.
A price negotiated between related parties, offered as proof of market value.
A figure with no stated date of valuation, no basis of value, and no assumptions disclosed.
A valuation by a party with an interest in the transaction, or a fee tied to its outcome.
A one-page letter of opinion: a conclusion with no reasoning, evidence or cross-check.

What we document

The purpose, the interest valued, the basis of value and the exact date of valuation.
The valuer’s qualifications, experience and declaration of independence.
Normalisation adjustments to reported earnings, each identified and explained.
The methods considered, the method adopted, and the reasoning — with a cross-check on a second basis if appropriate.
Analysis of the P&L and normalisation of line items.
Every material assumption, the evidence relied upon, and the limiting conditions of the report.

THE DELIVERABLE

What the report contains.

A signed valuation report prepared for taxation purposes — prepared in accordance with ATO guidelines.

Instruction and scope

Who engaged us, the purpose of the valuation, the interest valued, the basis of value adopted and the date of valuation.

Credentials and independence

The valuer’s qualifications and relevant experience, with a declaration of no interest in the outcome.

Entity and business overview

Structure, ownership, operations, customer and supplier concentration, key personnel dependencies and industry context.

Financial analysis

Historical results reviewed, with normalisation for owner remuneration, related party dealings, one-off items and non-operating assets.

Methodology and selection

The approaches considered — capitalisation of future maintainable earnings, discounted cash flow, net tangible assets, comparable transactions — and why the adopted approach fits.

Evidence relied upon

Comparable transaction and market evidence, industry data, and the source for every input, referenced to the date of valuation.

Adjustments to the interest

Where a partial interest is valued, the treatment of control, minority position and marketability, with the basis for each adjustment stated.

Cross-check and reconciliation

A secondary method applied if appropriate, with any divergence explained rather than averaged away.

Assumptions and limiting conditions

Every assumption made explicit, so the reader knows precisely what the conclusion depends on.

Signed conclusion of value

The assessed market value at the relevant date, signed by the valuer responsible for it.

RETROSPECTIVE VALUATIONS

The event was years ago. The valuation still has to be as at that date.

A retrospective business valuation is not a present-day valuation adjusted backwards. It requires the valuer to reconstruct what a hypothetical willing buyer and willing seller knew — and did not know — at the relevant date, and to exclude everything that has happened since.

That distinction matters more than it sounds. A business that has since prospered cannot be valued with the benefit of that knowledge. A business that has since failed cannot be marked down for it. The evidence used must be evidence that existed at the date, and the report must show that it was.

Our retrospective reports explain the evidence and assumptions relevant to the valuation date.

We prepare retrospective valuations for restructures that were never documented, estates settled long after the date of death, shareholder disputes reopened years later, and pre-CGT questions requiring value at historical testing dates. The further back the date, the more the outcome depends on the discipline applied to the evidence.

HOW IT WORKS

From enquiry to signed report.

Scope and fee

A short conversation with a valuer to establish the interest, the correct date and the CGT event involved. You receive a fixed fee, a timeframe and a specific list of what we need. If a valuation isn’t the right instrument, we say so here.

Analysis

Financial review and normalisation, market and comparable evidence, method selection and cross-check. We issue a management questionnaire to ensure any gaps are resolved.

Signed report

The full report issued to you or your adviser, with the valuer available to discuss the reasoning — and to respond if the position is later reviewed.

Before You Engage Us

Questions we’re asked.

What date should the valuation be as at?

The relevant date depends on the CGT event or provision applicable to your matter and should be confirmed by your accountant or tax adviser. Where a valuation is required for the 1 July 2027 transition, the relevant market value is immediately before 1 July 2027 (being 30 June 2027). We confirm the valuation scope and date before quoting.

Can you value as at a date several years ago?

Yes. Retrospective valuations are a routine part of this work. What we need is the financial and corporate information that existed at that date. Where records are incomplete, we will work with you to get to an agreed set of assumptions for us to base our assessment on.

How is the report prepared for ATO review?

No valuer can guarantee how a specific matter will be assessed, and we will not suggest otherwise. What we can do is prepare the valuation so that the methodology, evidence and reasoning are fully set out in the form the ATO’s guidance calls for — which is the basis on which a market valuation is assessed.

What happens if the valuation is queried?

The valuer who signed the report responds. We retain the working papers and the evidence file, and we can explain and support the reasoning to your adviser or to the ATO. That capability is part of the reason the report is written the way it is.

What information will you need from us?

Generally: financial statements and tax returns for several years to the date of valuation, management accounts, the corporate structure and ownership register, and details of any related party arrangements. You will receive a specific list with the fee proposal rather than a generic checklist.

What does it cost?

Fees are fixed and quoted upfront, and depend on the size and complexity of the entity, the number of interests valued, and whether the date is current or historical. We will not begin work before the fee is agreed in writing.

Do you value businesses in our industry?

We value businesses across most sectors. Our experienced business valuers have backgrounds in audit and investment, with capability across various sectors.

Establish the position while the evidence still exists.

Tell us the interest, the date and the CGT event behind it. We’ll confirm what the valuation can and cannot support, with a fixed fee and a timeframe — before you commit to anything.