{"id":2708,"date":"2025-06-08T15:22:05","date_gmt":"2025-06-08T05:22:05","guid":{"rendered":"https:\/\/peloton.group\/?page_id=2708"},"modified":"2026-07-07T16:21:27","modified_gmt":"2026-07-07T06:21:27","slug":"company-valuations","status":"publish","type":"page","link":"https:\/\/peloton.group\/dev26\/company-valuations\/","title":{"rendered":"Company Valuations"},"content":{"rendered":"\n

Company Valuations<\/h1>\n<\/div><\/div><\/div><\/div><\/div>

Peloton Corporate is a renowned expert in the field of corporate valuations.<\/p>\n

Our advice is sought by directors considering a capital raising, for financial reporting compliance (AASB2, AASB3, AASB136 etc), potential takeovers and Chapter 6 Corporations Act compliance, shareholder value advisory, tax (transfer pricing, demergers etc), remuneration benchmarking and other reasons.<\/p>\n

What is the valuation needed for?<\/h2>\n

Whether the valuation is required for the purpose of determining the value of a minority or controlling interest in a listed or unlisted (private) company, Peloton Corporate can help.<\/p>\n

Every company valuation is undertaken employing a systematic, five-step approach by a team which has undertaken over 1,000 valuations involving over $100b of equity interests.<\/p>\n

The valuation considerations in company valuations are described in the diagram below.<\/p>\n

Equity Value Assessment Schematic<\/h2>\n

\"Equity<\/p>\n

Specific considerations in the private company context typically include:<\/p>\n

    \n
  1. Key person risk<\/li>\n
  2. The extent to which key commercial arrangements are reflected in legal agreements (e.g. salaries for key people)<\/li>\n
  3. The expected likely term of any ongoing customer contracts<\/li>\n
  4. Reliance on any related party intellectual property, facilities or personnel<\/li>\n
  5. Evidence of funding to facilitate growth in the case of early-stage\/start-up ventures<\/li>\n<\/ol>\n

    In order to determine the market value of a minority equity interest it is necessary to assess whether the implied lack of control over corporate governance (including strategy-setting, capital access and funding, board composition, payment of dividends etc) is likely to result in the value to the hypothetical third-party purchaser to be discounted from the pro rata share of net assets implied by the above schematic.<\/p>\n

    Typically small-company minority discounts range between 20% to 50% from the pro rata share of the market value of equity.<\/p>\n

    What if the value of a minority interest is required?<\/h2>\n

    If the value of a minority interest is required and there is a consistent history and outlook for dividends then a dividend capitalisation approach may be available. Typically, a valuation of the underlying business(es) is required to which the net non-operating assets are added to arrive at the value of the company. Minority and other discounts may apply if the business is unlisted and a clear shareholder agreement is not available<\/p>\n

    In the presence of a typical shareholder agreement, this discount is often expressly eliminated.<\/p>\n

    Further information in relation to small business equity valuations, refer to our Insights page, \"What is an equity valuation \u2013 and why is it so complicated?<\/em><\/a>\"<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div>