An online business valuation can be reliable for the purpose it was scoped for, if it uses your actual financials, sets out its method and limits, and a valuer reviews it. A free calculator is not a valuation. For tax, lenders, court or other parties, you usually need a full signed report or a specialist.
Can an online business valuation be relied on?
Yes, for the purpose it was scoped for, if it uses your actual financials, explains its method and limits, and a valuer reviews it. Ordering online is about convenience. Reliability comes from the work behind the report.
An online order does not make a valuation better or worse. What matters is the scope, the evidence, the method and who takes responsibility for the conclusion.
What is the difference between a calculator and an online valuation?
A calculator applies a formula to a few inputs. An online valuation, done properly, reviews your real records and reaches a reasoned conclusion.
| Free calculator | Online report, valuer reviewed | Full signed report | |
|---|---|---|---|
| Uses your actual financials | No, only your inputs | Yes | Yes |
| Adjusts earnings | No | Yes, within its scope | Yes, each adjustment explained |
| States method and limits | Usually not | Yes | Yes, in detail |
| Reviewed by a valuer | No | Yes | Yes, and signed |
| Suits other readers | No | Usually no | Often, subject to scope |
A calculator is useful for a first look. It cannot check whether your earnings need adjusting, what your debts are, or whether a lease puts the business at risk. See calculator vs report for more.
What can an online valuation do well?
It can give an owner a clear, reasoned view of value for their own decisions, at a fixed fee, without an appointment.
That suits questions like:
- What is my business worth today?
- Am I ready to talk to brokers or buyers?
- What baseline should we plan succession around?
- Is a business I may buy worth a closer look?
The Australian Government's guide to valuing your business notes there is no one set valuation method. In the end, value is what the market or a buyer will pay. A good report explains why it chose its method, so you can see its reasoning.
What can't an online valuation do?
A streamlined report for your own use is not built for formal purposes. It cannot replace a full independent valuation where someone else will rely on the result.
Be careful if the valuation is for:
- tax, CGT or a restructure
- a bank or other lender
- a buyer, investor or shareholder who will rely on it
- family law, a dispute or court
These uses usually need deeper analysis, documented evidence and a signature. Court and expert witness work is a separate specialist engagement again, because it follows its own rules. Your accountant or lawyer can advise on what your situation requires.
What should I check before relying on any valuation?
Check four things: the scope, the method, who reviews it and the limitations. If any is missing or vague, treat the number with caution.
- Scope. What is being valued, at what date, for what purpose, and who may rely on it?
- Method. Does the report say which method it used and why it fits the business?
- Who reviews it. Is a named valuer responsible? Is the report signed, and by whom?
- Limitations. What did the valuer not check? What assumptions does the conclusion depend on?
Also check whether the fee depends on the value. A fee linked to the answer can be a conflict of interest, so ask how the fee is set.
How does Valuo's online model work?
You order online and upload securely. Software helps with the analysis, and a valuer reviews every report before it is issued.
- Order. Choose your revenue band and report, see your fixed fee and answer a few short questions about the purpose. If the answers show the work needs more scoping, a valuer replies with a fixed fee in writing before anything is paid.
- Upload. After you accept your terms, you upload financials through a secure link to private storage.
- Analysis. Software organises and checks the numbers. It never supplies a figure, a comparable sale or a multiple of its own. A valuer makes the adjustments, chooses the method and reaches the conclusion.
- Review. Every report is reviewed before it is issued.
There are two reports:
- Business Value Report. A streamlined assessment for your own decisions. It is reviewed by a valuer but is not signed, and it is not for tax, the ATO, family law, court, lenders or other third parties.
- Professional Valuation Report. A full independent valuation with explained adjustments to earnings, market evidence where available and relevant, a review of key assumptions, and a detailed report signed by the valuer responsible.
Even a signed report has limits. A court, the ATO or a lender decides for itself whether to accept a report. Fees are fixed before you start and never depend on the value concluded.
When do I need a specialist instead?
Some situations need their own rules, methods or evidence. Valuo routes these to a specialist company with a custom fixed-fee quote.
- Separation and family law: Family Law Valuations
- Complex restructures, tax and CGT, related-party transfers and shareholder buyouts: Oliver Group
- Healthcare practices: Medival
- Start-ups and pre-profit companies: Start-Up Valuations
Get started
If your situation suits an online valuation, Get your fixed fee. Compare both reports on the pricing page, or read how it works.
Questions
Is an online business valuation as good as a traditional one?
It depends on the work behind it, not where it is ordered. A valuation ordered online that uses your real financials, explains its method and is reviewed by a valuer can suit its stated purpose. One that only applies a formula to a few inputs is an estimate, not a valuation.
Can I use Valuo's Business Value Report for tax or a bank?
No. The Business Value Report is for your own decisions and is not signed. It is not for tax, the ATO, family law, court, lenders or other third parties. For those uses, the Professional Valuation Report or a specialist engagement is the right fit.
Who checks a Valuo report?
A valuer reviews every Valuo report before it is issued. Software helps organise and check the numbers, but a valuer makes the adjustments, chooses the method and reaches the conclusion. A Professional Valuation Report is signed by the valuer responsible.
Will the ATO, a court or a bank accept an online valuation?
Each decides for itself whether to accept a report. What usually matters is whether the report suits the purpose, explains its evidence and method, and is signed by someone who takes responsibility for it. Ask the recipient what they require before you order.
Does software decide the value?
Not at Valuo. Software organises and checks the numbers, for example flagging missing years or totals that do not agree. It never supplies a figure, a comparable sale or a multiple of its own.
General educational information, not advice. Examples are hypothetical and do not value a real business. The right treatment depends on the purpose, the evidence and the agreed scope.