We prepare business valuations for expert witness engagements and consulting assignments, including providing valuation advice to Receivers regarding the market value of assets.
Business valuations arise both in independent expert witness assignments, where the expert opinion offered is an opinion as to value, or as discrete consulting assignments.
Business valuations involve the estimation of the economic value of a business or an interest in a business. A sound business valuation will identify the processes and procedures that have been adopted by the valuer and outline the assumptions that have been made in reaching the opinion as to value.
Business valuations can often involve the preparation of detailed discounted cash flow models, the analysis of comparable companies and comparable transactions, and the identification of appropriate industry valuation benchmarks. It is often the case that a combination of valuation methods will be applied in a valuation engagement, with the different methods used to ‘cross check’ the valuation outcome.
Business valuations are often specified to be prepared on the basis of ‘fair market value’. The nature and purpose of the valuation assignment may dictate that an alternate standard of value be applied, such as ‘investment value’ or ‘intrinsic value’. Understanding the purpose to which that valuation is directed is critical to ensuring that the opinion as to value is robust and reliable.
Axiom Forensics has extensive experience in business valuations, including, in particular, in the preparation of detailed discounted cash flow models.
As an independent expert witness we are experienced at providing expert reports and oral testimony should a matter go to court. Our reports are tailored to the specific issues at hand, including areas such as business valuation or the assessment of damages arising from lost cash flows.
A brief summary of the services that we can provide includes:
- Business valuations in the context of litigation (in which case the opinion will be in the form of an independent expert report).
- Consulting valuations, including valuations to management / boards of directors.
- Consulting expert services, including providing assistance to Counsel in preparing for cross-examination.
- Business and asset valuations to assist a Receiver in satisfying its obligations pursuant to s420A of the Corporations Act.