LATEST NEWS

Unlocking cash from prior acquisitions

Unlocking cash from prior acquisitions

Cash is King. Perhaps this powerful mantra has never rung more true for many than in the current environment. Most households and businesses are keenly adopting measures to improve cash conversion (increasing and bringing forward incoming cash whilst limiting and deferring outgoing cash).

If you’ve acquired businesses in the past five years, there may be compelling reasons to revisit the way in which you allocated your purchase price for tax purposes.  The Australian taxation regime allows for previously lodged tax returns to be amended.  This means that businesses can revisit the valuation analysis that supports their purchase price allocation, and if appropriate, amend their allocations to generate positive cash returns.

In recent months we have revisited the purchase price allocations of several clients, and with their tax advisors, identified significant cash benefits that were previously overlooked.  Some examples:

  • Industrial parts$15.2 million cash benefit over 4 years
  • Health service – $7.3 million cash benefit over 5 years
  • Food manufacturing – $3.6 million cash benefit upfront

Questions?

If you’ve acquired businesses in the past, or are considering acquisitions going forward, feel free to contact us for an obligation free discussion.

OTHER NEWS

Discount Rate 31 Dec 2023

Market Discount Rates – 31 December 2023

Optimism around the easing of inflation and potential interest rate cuts led to a rally in equity markets towards the end of December 2023. With markets continuing to fluctuate significantly, the selection of a reasonable discount rate remains a key consideration, whether for the purpose of financial reporting or for any valuation analysis.

Discount rate September 2023

RISING MARKET DISCOUNT RATES

Markets have declined over the last quarter as persistent inflation and the potential for further rate rises continue to weigh on the ASX 200. These fears have seen a rapid increase in government bond yields over the last month. With market conditions continuing to evolve rapidly, we have provided an update on our assessment of discount rates as at 30 September 2023.

Simon Dalgarno celebrates 25 years

25 Years at Leadenhall: Simon Dalgarno celebrates

After 25 years at Leadenhall (and in the valuation profession) Simon Dalgarno was lucky enough to have the entire month of May off as leave. During his time off, he went on a pilgrimage – which was both professional and personal.