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Restructuring and ATO Business Valuations

Is your accountant about to restructure your business entities?

Are you taking on new partners, or selling your shareholding to an existing partner?

Then you will need a business valuation to report market value for tax and other reporting requirements.  


An in-depth business valuation gives you a defendable assessment of market value that can be relied on for ATO and other purposes.

Business Valuation Quote

Business Valuation Issues Related to ATO and Restructuring?

The restructuring of a business from one type of entity to another (eg trust to private company) is a transaction, and often triggers certain taxation events (such as Capital Gains Tax). 

For this reason a restructuring must often occur at market value, and the business valuation issues that must be dealt with include:

  • What is the appropriate market value for tax purposes?

  • Are there any partnership or shareholder agreements that may impact the business valuation?

  • What is the most appropriate and defend-able method for valuing the business?

  • What will the ATO expect in terms of market valuation methods?

  • What defend-able conclusions from performance and valuation assessment can be made and documented?

  • What balance sheet issues impact the business valuation?

Our valuations deal with these issues and others that arise during the restructuring process.  If you are restructuring the entity that owns your business or the ownership of your business then you need an experienced valuer that is aware of the regulatory requirements.

We have the expertise and experience in carrying out business valuations to deal with all of these issues and more.

Business Valuation 101 Basics

ATO Market Valuation Guidelines

The ATO Market Valuation Guidelines were issued to ensure that business valuers completed business valuations in a consistent manner and in line with Australian standards (APES 225) and international best practice (ICVS) Guidelines. 

By shifting away from a prescriptive approach, the ATO Market Valuation Guidelines recommend increasing levels of evidence and analysis expected in a business valuation, based in the degree of uncertainty and risk of the business and its expected tax position. 

This included processes and analysis such as:

  • The degree of analysis of the business and its industry and market trends.

  • The level of substantiation of financial results.

  • The number of valuation methods to be used and the degree to which these must be documented.

  • The level of uncertainty acceptable in the business valuation outcomes.

Where the purpose of the business valuation is for ATO reporting purposes, the business valuation reports delivered by Exit Value Advisers are compliant with the ATO Market Valuation Guidelines.

Our Business Valuation Consulting Experience By Industry

Our business valuation consulting experience has included almost every industry and business within the SME sector.  It has spanned traditional sectors such as manufacturing, transport, retail, cafe  and food related businesses to the latest technology development, IT and professional services firms.

We have made a more detailed list of our business valuation consulting experience by industry.


If you want to discuss your business or industry issues with us, send us an enquiry.  We are always happy to discuss the business valuations issues and trends from your industry and particular to your business and circumstances.

What Does A Business Valuation For ATO Purposes Provide?
  • Clear statement of the valuation range.

  • Scope on which this valuation has been based.

  • Supporting evidence and information relied upon.

  • Methodology adopted and any assumptions relied upon.
  • Clear explanations of business analysis​

ATO Market Valuation Guidelines compliant business valuations must demonstrate:

  • Clear arguments and reasons for any conclusions.

  • Must be based on reliable and clear evidence.

  • Adherence to ATO Market Valuation Guidelines.

  • Be completed in a manner that is consistent with current standards and methodologies.

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