Relationship Property - Business and Share Valuations

Covisory’s Business and Company Valuations team has extensive experience and expertise in assisting in the settlement of relationship property disputes.

Whilst Business and Company valuations are at the forefront of an independent expert’s assistance and opinions, the Covisory team’s expertise and opinions also encompass:

  • Valuations of partnerships and trusts,
  • Valuing other Relationship Property interests – e.g. Superannuation interests, Shareholder and Beneficiary Current and Loan accounts, the increase in the value of Separate Property when such is deemed Relationship Property and assessing the value of Economic Disparity and Spousal Maintenance claims.

Business and Company valuers have faced the economic fallout from Covid-19 when carrying out their valuations.

During these times, many businesses face fundamental changes in their markets, their operational practices and short to medium-term business outlooks generally. This added complexity in assessing future maintainable earnings and appropriate earnings multiple.

Post Covid many businesses experienced a rebound but in recent times the economic environment has been challenging.

Having experienced prior economic downturns, combined with their market transaction business data, means the Covisory team is well placed to undertake Business and Company valuations in the current environment.

The past tells us that Business and Company valuations will in general drop as a result of the current economic environment, particularly as earnings and earnings outlook drop.

Where parties have recently concluded settlement agreements or have had orders for property disputes made by the courts, those agreements or orders could well be reviewed if the Valuer places too much weight on current earnings.

A Valuer needs to be mindful of the economic cycles that confront businesses and therefore assess value in relation to estimated earnings over an economic cycle rather than at a point in time.