Related-party transfers
Assess an identified business or ownership interest for a proposed transfer. The valuation brief should explain the parties, transaction and the purpose for which the resulting value will be used.
Valuation service
Business valuations for tax, restructures and succession
A tax-related valuation starts with the transaction and the question your tax adviser needs answered. A transfer between related parties, a change in structure or a planned ownership transition may require a business or share value at a particular date. Defining that requirement early helps align the valuation with the advice and documentation around it.
When it is useful
Decisions this valuation can support
Business restructures
Provide a valuation input to a proposed change in ownership or structure. Your tax and legal advisers should confirm the applicable requirements and whether any relief is available.
Succession planning
Give owners and advisers a financial reference point when considering how interests might pass to family members, employees or new owners. Keep the valuation separate from decisions about funding and tax treatment.
Evidence and methods
How the value is assessed
The method must suit the asset and the required basis of value. Earnings, cash-flow, market and asset-based approaches may be relevant. The ATO's guidance emphasises reliable information, supportable assumptions and evidence appropriate to the valuation date. It does not make a single formula suitable for every business or transaction.
Read about our valuation approach and Calvin Lim’s experience.
Information we may need
- The transaction outline and instructions from your tax adviser
- The relevant valuation date and details of the interest transferred
- Financial statements, management accounts and supporting ledgers
- Ownership charts, share rights and relevant agreements
- Budgets or forecasts and details of non-recurring transactions
- Previous valuations and available records for any historical date
What the work can deliver
The agreed report can document the subject interest, purpose, date, information considered, methods and material assumptions supporting the conclusion. It can identify unavailable information and important limitations so your adviser can consider the valuation alongside the wider transaction documentation.
Scope, fees and timing
Historic records, multiple entities, proposed changes to the transaction and the need to reconcile financial information can affect effort. Confirming the transaction and date before substantive work begins helps reduce avoidable revisions. Fees and timing depend on the agreed scope and evidence available.
Related support
Explore connected valuation services
Real-property valuation, tax advice and legal advice require appropriately qualified advisers. Any reliance on other specialists is agreed within the engagement scope.
Practical questions
Frequently asked questions
Does a valuation determine the tax treatment?
No. A valuation provides an input to the analysis. Your tax adviser should determine the relevant provisions, transaction consequences and any eligibility requirements. A valuation does not guarantee an exemption, concession or acceptance by a revenue authority.
Can the value be chosen to achieve a tax outcome?
The conclusion must follow the required basis, evidence and reasonable assumptions. A preferred transaction price or tax result is not a substitute for that analysis.
Can one report cover several steps in a restructure?
Possibly, but each step may involve a different asset, interest, date or purpose. Provide the proposed steps at the outset so the scope can identify what a single report can address and what needs separate consideration.
Discuss the purpose of your valuation
Tell us the interest involved, the intended use and any deadline. We can then discuss scope and the information needed.