COMPANY VALUATIONS

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COMPANY VALUATIONS

Pentagon Corporate specialises in company and business valuations for a large number of purposes, as outlined below.

  • Valuation expert reports, which  are provided for a range of purposes where we are engaged as an expert witness for a company or business valuation in the context of a dispute and / or court action, commissioned by either plaintiffs or defendants.
  • Valuation reports and valuation expert reports for commercial litigation, which may include issues such as breach of contract, breach of copyright, shareholder disputes and partnership disputes.
  • Valuation reports and valuation expert reports for shareholder oppression cases are often used by minority shareholder plaintiffs in Supreme Court actions. This may also include a valuation expert report and critique of another expert report in the case of disputing a compulsory acquisition. 
  • Corporate and valuations or business valuations for Mergers and Acquisitions (M&A) are commissioned either by a party selling a business or a party acquiring a business, to understand the value of the business.
  • Valuation of minority shareholdings or minority shareholder interests involve a number of considerations such as a liquidity discount, discount for lack of control (DLOC) and discount for lack of marketability (DLOM).
  • Company valuations or business valuations for accounting purposes are used for impairment  testing and purchase price allocation.

VALUATION EXPERT REPORT

Pentagon Corporate is often engaged to provide independent company and business valuation reports or expert reports, engaged either as a single expert / joint expert or as a shadow expert. All of our reports are conducted as 100% independent engagements, regardless of its purpose and are often used as part of court proceedings, including, but not limited to the Supreme Court, Federal Court, Magistrates Court and Tribunals such as VCAT (Victorian Civil and Administrative Tribunal) or NCAT (New South Wales Civil and Administrative Tribunal) or equivalents in other states.

Our expert reports are used in commercial litigation, compulsory acquisition cases and shareholder oppression cases. We are engaged by the instructing solicitor and often work to very tight timetables to fit in with the requirements of the case and the court mandated timetable. We liaise with counsel (the barrister on the case) as requested and where the opposing side has their own expert report, we may be asked to critique the other report and participate in a joint conference of experts. 

In other situations, our reports may not be referred to as an expert report, but rather a valuation report. This includes company or business valuation reports for impairment testing, purchase price allocation, valuation of minority shareholdings and valuations in the context of company mergers and acquisitions.

COMPANY VALUATION METHODS AND APPROACHES

A company or business valuation requires the assessment of a number of business valuation approaches and methods.

The two main company / business valuation methods include the capitalisation of earnings methodology (also referred to as valuation multiplies or earnings multiples / EBIT multiples / EBITDA multiples) and the discounted cash flow (DCF) method. 

Other methods include consideration of a revenue or sales multiple, the realisable value of net assets of the business, replacement cost and consideration of comparable company multiples.

It is incorrect to rely on just one company valuation model when valuing a company. Our business valuation process includes consideration of all methodologies, whereby a primary method will be favoured and a number of crosschecks considered. There is no such thing as a simple company valuation formula, company valuation calculator or company valuation template. This is because it requires detailed consideration of the business at hand, including in-depth research, analysis and understanding of the business, industry and business conditions, among many other factors. 

We are engaged either directly by the business or engaged by a lawyer or accountant on behalf of the Company. We approach each engagement in the same manner, including detailed financial analysis, company & industry research and an in depth understanding of the business (‘looking under the hood’). 

WHY CHOOSE US

Expertise

Highly skilled specialists, exclusively focused on our niche with a high level of experience across multiple industries

Professional

High quality, robust and clear reports, including detailed analysis, research & justification

Certainty & Clarity

Clearly communicated scope and fixed fee at the outset, tailored approach and very responsive at all stages of the engagement

An Obvious Choice

100% independent, multiple testimonials from clients, competitive fees & exceptional value, high quality & timely outputs

AREAS WE SERVICE

TESTIMONIALS

Below is a small sample of our happy clients 

Laura Keily

Barrister & Founder of Immediation

Pentagon Corporate assisted us with a company valuation, demonstrating clear skill. They were great to work with and I recommend them. Pentagon Corporate also prepared an Information Memorandum and Investor Presentation which were highly valuable in raising capital. The work was very thorough and showed great attention to detail and responsiveness at all times.

Takie Christofides

Mergers & Acquisitions, NAB

Pentagon Corporate assisted me with the valuation of my business, which was very helpful in determining an exit price. The report produced was very detailed, thorough and professional. I was consistently updated on the status of the report with the finished product being ready in a timely manner. I would not hesitate to recommend Pentagon Corporate.

Samuel David

Principal, JosephDavid Lawyers

I engaged Pentagon Corporate for a Family Law dispute. We were provided with timely and reliable information and a very useful, thorough and well presented Company business valuation in a complex financial dispute, which ultimately proved extraordinarily valuable in the resolution of the matter by agreement. I highly recommend Pentagon Corporate's services and will continue to engage them in future matters.