The Situation

A second-generation family manufacturing business, run by two siblings, is planning an ownership transition to the next generation over the next 18 months. With the CGT changes taking effect 30 June 2027, the family wants an independent, defensible valuation before any transfer of shares — both to establish a fair cost base and to avoid disputes between family members down the track.

The Approach

An independent valuation combining capitalised earnings (EBITDA multiple) and net tangible asset value, given the business owns its premises and plant. Site visit and management interviews to understand normalised earnings, add-backs and any related-party transactions that need adjusting for. Full independence declaration, given family members sit on both sides of the transaction.

The Outcome

A report the family’s accountant and lawyer can rely on to structure the transfer, with a valuation date, methodology and assumptions clearly documented — reducing the risk of a dispute over value between siblings, and giving both generations a number they can plan around.