Specialist, not generic
Many business valuation models begin and end with a financial multiple. Green Standard also looks at the operational characteristics that determine whether those earnings will continue under another owner.
Two businesses, the same profit
Take two electrical contractors that each report $400,000 of profit. The first has six licensed electricians, a portfolio of commercial maintenance contracts and an owner who spends most of the week managing. The second earns most of its revenue from two builders, and its owner holds the contractor licence, runs the biggest jobs and quotes everything.
A generic multiple values them the same. A buyer would not. The difference sits in the revenue quality, the workforce, the licence, the concentration and the owner’s role, and that is where we spend our time.
The two businesses are illustrative.
The business behind the numbers
Each of these is considered on every engagement and written into the report where it affects value.
Industry-specific intake
The intake and document list change with the trade. A pest control business is asked about service cycles and route density; a civil contractor about prequalification, work in progress and the order book.
Earnings normalisation
Owner wages restated to market, related-party costs to commercial terms, personal and one-off items removed. Every adjustment listed and explained.
Asset analysis
Vehicles, plant and equipment considered for what they contribute to earnings, what finance sits against them, and whether the fleet has been kept current.
Owner dependency
How much of the revenue, technical capability, licences and customer goodwill sits with the owner personally, and what it would cost to replace.
Recurring revenue
Contracted, habitual and regulated recurring work distinguished, because a buyer pays very differently for each.
Customer concentration
Reliance on one builder, head contractor, government panel or national account measured over several years and reflected in the risk.
Workforce
Employees, apprentices and subcontractors, their licences and tenure, and whether the business could deliver its work without the owner on site.
Transferable goodwill
The part of the value that belongs to the business and would pass to a new owner, separated from the part that leaves with the current one.
Clear reports
Written so an owner, an accountant and a lawyer can each follow the reasoning from the financial statements to the conclusion.
Independent analysis
A fixed fee agreed before the work starts, independent of the value concluded, with a draft before anything is final.
Method you can check
We follow the guidelines of APES 225 Valuation Services in every report we sign. The engagement is defined in writing, independence is stated, the fee is fixed, and the reasoning is on the page. Our methodology sets out how we approach the work.
We do not provide legal, taxation or financial advice, and we do not promise that any authority, court or counterparty will accept a particular value. What we promise is a valuation whose reasoning can be followed and tested.
Start with a short intake. We confirm the fee and scope in writing.
An Independent Business Valuation is $1,995 + GST, with a draft before the report is finalised. Typical turnaround is 3 to 7 business days once all required information has been received.