Getting Professional Help: Why the Right Advice Matters

You’ve prepared your financials, tuned up operations, and analysed your market. But even the most capable business owner can benefit from one last ingredient: the right professional advice.

Business valuation is as much art as science. It’s a process that blends data, judgement, and insight. And while there’s plenty you can prepare on your own, having the right advisors in your corner ensures your valuation is accurate, defendable, and aligned with your strategic goals.

In this final article in our Getting Ready for a Business Valuation series, we look at how engaging the right experts can elevate the process — and what to look for when building your team.

1. Why You Need More Than a Number

A business valuation isn’t just a technical exercise. It’s a tool for decision-making. Whether you're looking to sell, raise capital, exit, or bring on a partner, the valuation shapes negotiations, tax outcomes, and your future financial path.

Good advice helps you:

• Understand the true drivers of your business value
• Identify areas to improve before a valuation or transaction
• Choose the right valuation method for your situation
• Avoid pitfalls that can reduce value or trigger disputes

And importantly — it gives you confidence. Confidence that the number reflects reality. Confidence to negotiate. Confidence to plan.

2. Types of Valuation Professionals

Not all valuation advisors are the same — and not every situation requires the same level of input. Here’s a quick guide to the types of professionals who may be involved:

Chartered Business Valuers or Corporate Finance Advisors
These are specialists who perform formal valuations, often required for legal, tax, or transaction purposes.

They bring:

• Deep technical knowledge of valuation methodologies
• Access to market data and deal comparables
• Objectivity and independence

Use when:

• You need a formal valuation report (e.g., for sale, divorce, shareholder dispute)
• There are complex issues like IP, international assets, or restructuring
• The valuation may be scrutinised by third parties (banks, courts, buyers)

Accountants
Your existing accountant or financial controller is a great starting point. They know your business, your numbers, and can help prepare clean, reliable data for a valuer to work with.

They can:

• Prepare or normalise your financial statements
• Help you understand your tax position and implications
• Support with due diligence or audit-readiness

Legal Advisors
Legal input is critical when a valuation is tied to a transaction, partnership exit, or shareholder arrangement.

They help:

• Review or draft shareholder agreements and buy/sell clauses
• Navigate IP ownership, contracts, leases, or warranties
• Structure deals to manage liability and protect interests

Industry Consultants or Brokers
If you’re planning to sell, a specialist broker or M&A advisor can bring market insight, buyer networks, and deal experience.

They assist with:

• Benchmarking your business against recent deals
• Identifying the right buyer profile
• Structuring and negotiating deals

Tip: Choose professionals with direct experience in your industry or business size. Valuation in a tech startup differs from a manufacturing company — and the nuance matters.

3. How Early Should You Engage Advisors?

The best time to involve advisors is early — before you need a valuation.
By engaging early, you can:

• Identify and address issues that may reduce value (e.g., messy books, key person risk)
• Create a roadmap for increasing value over time
• Avoid surprises that can derail a deal or delay a transition

Think of it like getting a building inspection before listing a house. You want time to fix the cracks, not negotiate them away.

Rule of thumb: Allow at least 6–12 months to prepare properly if you’re planning to sell or restructure. Valuation isn’t a last-minute job.

4. Common Mistakes Without Professional Help

Going it alone, or engaging the wrong kind of help, can lead to costly missteps:

• Overestimating value based on emotion or rules of thumb
• Undervaluing the business by missing hidden assets or future earnings potential
• Using the wrong methodology for your situation (e.g., asset-based when income-based is more appropriate)
• Triggering tax or legal issues by structuring a deal incorrectly
• Poor negotiation positioning due to lack of market insight or credible evidence

Avoiding these mistakes is often worth far more than the cost of professional advice.

5. Preparing to Work with Advisors

Getting value from advisors means being organised and transparent. The more clarity you provide, the better guidance they can offer.

What to prepare:

• Historical and forecast financials
• Key contracts and agreements
• Organisational structure and ownership details
• Strategic plans, market analysis, and known risks

What to ask:

• Have you worked with businesses like mine before?
• What’s your approach to valuation in my industry?
• Can you help me improve value before the valuation takes place?
• How do you price your services — fixed fee or hourly?

Tip: Treat it as a partnership. The best advisors act as sounding boards and strategic guides, not just number crunchers.

Final Thoughts

Business valuation is more than a calculation — it’s a strategic exercise with long-term implications. Surrounding yourself with experienced, objective advisors can help you avoid pitfalls, uncover opportunities, and ultimately put you in control of your business journey.

If valuation is on your horizon — whether for a sale, restructure, succession plan, or strategic pivot — don’t go it alone. The right help can make all the difference.

Ready to take the next step?
The team at Andersen in New Zealand combines valuation expertise, commercial insight, and practical experience to guide business owners through every stage of the valuation journey. Talk to us about how we can support your goals.

Author - Aaron Wallace