When preparing an NTA valuation (also known as a "book" valuation) we will need to confirm your eligibility and need certain information from you.
In order to be eligible for a Net Tangible Asset (NTA) book valuation, companies must meet the following criteria
- your startup hasn't raised $10m in previous 12 months; and
- your startup is less than 7 years old or is a small business with less than $10m revenue; and
- your startup prepares financial reports.
(If you don’t meet these criteria, you will need to undertake an alternative method of valuation as accepted by the board that takes into account future cash flows, similar businesses and illiquidity of unlisted companies - our Startup valuation offers this).
What we need to prepare the NTA book valuation:
- Confirmed date of valuation
- Balance Sheet and P&L as at the valuation date, or invite us into your Xero file
- an ASIC register or equivalent to confirm the number of shares on issue at the date of valuation
- Where the company has issued preference shares, we also need to know the amounts raised associated with preference shares that are, preferentially, provided priority on any liquidation
eg Shareholder A invested $250,000 for 250,000 1xPreference shares (ie they receive 1 x their money amount, first, in the event of any liquidation)
We will use this information to produce an accountant certified valuation that will incorporate the net tangible asset position of the company, allowing for any preference shares that have been issued