My family is my strength and my weakness (Aishwarya Rai Bachchan)

Frequently, chartered accountants are called on by their clients or from an outside referral, to undertake a valuation of either a business or the shares in a company that operates a business. But it is not that easy.

The majority of clients of small to medium sized accounting practices, involve a family owned enterprise of some description.

Most of these businesses fall into the SME category. In New Zealand, it is estimated that approximately 80% of business is operated by an incorporated entity. The SME group with five or fewer employees contributes approximately 85% of our GDP.

There are many purposes for which a chartered accountant may be asked to undertake a valuation, including:

• Company restructuring.
• Succession and/or estate planning.
• Taxation.
• Inheritance and transfer of wealth.
• Dispute resolution including settling relationship property.

Other commercial purposes include:

• Shareholder exit involving a transfer or sale of shares to other shareholders.
• M & A activity or the establishment of JVs.
• Capital raising.
• Employment and incentive schemes.