Business Valuation & Expert Reports in Melbourne

What Methods Are Used to Value a Melbourne Business?

Three primary methodologies are applied in Australian business valuation practice. The capitalisation of future maintainable earnings (FME) method determines value by applying an appropriate earnings multiple to the business's normalised EBITDA or EBIT — the most common approach for profitable trading businesses. The discounted cash flow (DCF) method values the business as the present value of forecast future free cash flows, discounted at a risk-adjusted rate; it is preferred for businesses with lumpy or high-growth cash flow profiles. The asset-based method determines value as the net market value of assets less liabilities, typically used for asset-holding entities, investment companies, and businesses where earnings do not reflect underlying asset value.

What EBITDA Multiple Is Appropriate for a Melbourne Business?

EBITDA multiples vary significantly by industry, size, growth profile, and market conditions. In the Australian market, service businesses with recurring revenue typically trade at 3–6x EBITDA; specialist professional services businesses trade at 5–10x; technology and SaaS businesses with high recurring revenue may trade at 8–15x or more. Businesses with customer concentration risk, key-person dependency, or thin margins trade at the lower end of their sector range. We apply market-derived multiples from comparable transaction databases and public company benchmarks, adjusted for size and risk factors specific to the subject business.

What Is a Business Valuation Used For in Family Law?

In Family Court property proceedings under the Family Law Act 1975, privately-owned businesses form part of the asset pool subject to division. The Federal Circuit and Family Court requires a formal valuation from a qualified expert — either as a single expert appointed by the court or as a party-instructed expert. Melbourne valuers conducting Family Court engagements must apply the court's preferred methodology (typically FME), disclose all assumptions, normalise remuneration to commercial replacement cost, and add back personal expenses run through the business. The valuation is subject to cross-examination and must comply with the Expert Witness Code of Conduct.

When Is a Business Valuation Required for a Shareholder Dispute?

Shareholder disputes in Melbourne often turn on the value of shares — whether in an oppression claim under s232 of the Corporations Act 2001, a compulsory acquisition, a buy-sell agreement trigger, or a disputed purchase price adjustment. Courts may appoint an independent expert, or each party may instruct their own valuer with a concurrent evidence process. Valuation disputes typically centre on the choice of methodology, the normalisation of earnings, the selection of multiples, and the application of discounts for minority interests or illiquidity. We prepare valuations for shareholder disputes that are robust to cross-examination and clearly supported by transaction evidence.

What Is a Formal Expert Valuation Report?

A formal expert valuation report is a written document in which a qualified valuer expresses an independent opinion on the value of a business or interest as at a specified date, for a defined purpose. Expert reports prepared for court use must comply with applicable practice notes including Supreme Court Practice Note SC Gen 11 in Victoria. The report must identify the expert's qualifications, the scope of the engagement, the information relied upon, the methodologies applied, all key assumptions, and any limitations. The valuer must declare that their primary duty is to the court, not the instructing party.