How Segregating Growth and Replacement Capex Enhances Business Value
In capital-intensive industries, misclassifying capital expenditure (capex) can undervalue a business during a sale. Properly segregating capex into categories for replacement and growth assets can…
Optimising Presentation of Earnings in Capital-Intensive Businesses
While many businesses are valued based on EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation), some investors in capital-intensive industries such as construction, transport, equipment…
IFRS 16/AASB 16 Leases – Considerations in M&A Transactions
Since the introduction of AASB 16 in 2019, valuing businesses using market multiples, especially EV/EBITDA, requires a new level of care. The accounting change does…
Why Working Capital is Important
There is often considerable confusion surrounding the treatment of working capital when selling a business. Working capital plays a crucial role in Enterprise Value calculations,…
How to Overcome a Crisis Event During a Business Sale – Video
If the financial performance of a business is temporarily impacted by a crisis event, unless the true underlying performance can be presented, the business sale…
Adjusting Depreciation to Maximize Business Value
The lower the real depreciation, the higher the profit and the higher the value, maximizing your business value.
