This book is only available in PDF format

Authors: Brendan Lyne, Robyn von Keisenberg
Published: 14 June 2016
Pages: 99

Introduction

This is the second time we have run this seminar, the first being in April 2011. In this ―second edition‖ we similarly explain accounting and valuation principles and practices. In addition we also discuss relationship property law and how valuation principles and practices are applied to that law.

You can be excused for coming to the topic of valuation, and in particular, relationship property valuations with a degree of trepidation.

The science and art of business and company valuations defies the desire for easily implemented solutions and answers. Business and company valuations challenge minds within the business, academic and legal communities.

Overlying the complexity of issues to do with ―ordinary‖ valuations of companies and businesses is the added complexity arising from relationship property requirements – Property (Relationships) Act 1976 (PRA or ―the Act‖), case law and issues which have not been judicially decided - present practitioners with a challenging cocktail.

Although it is not possible to turn you into an expert valuer in this seminar, it will be possible to explain basic valuation theory, principles and practices so that you can better perform your role as a lawyer in the field of relationship property law. Though the complexities, variations and nuances of valuation are challenging, this overview will provide you with helpful insights and practical tips.

We will first consider financial statements. These indicate the state of health of an organisation measured in terms of profitability (per the income statement) and net asset position (balance sheet).

Next we outline the principles of valuation and explain the how these are applied. Then we consider some specialist relationship property related valuation issues including economic disparity and valuation of trusts, before finally offering some tips on how you might get the best from your expert.

This seminar deals with the valuation of businesses (whether the ownership structure is sole trader, partnership, company, trust or other form of ownership). It does not consider valuations of real property, plant and equipment or other such fixed assets.
 

Content outline

• Demystifying financial statements
• Valuation theory and principles
• Applying valuation principles
• Economic disparity
• Valuation of trusts
• Miscellaneous valuation issues
• How to trace assets
• Obtaining the best of your expert
• Why valuers disagree and strategies to deal with this situation