Knowledge Centre

Know what a business is really worth before you buy, sell, or invest. 

Valuations & Due Diligence 

1. What You Need to Know 

Valuation estimates value; due diligence tests reality. 
CBAs triangulate methods (DCF, multiples, assets) and investigate financial, tax, and operational risks to inform price and terms. 

2. Why It Matters to You 

Good deals start with good information. 
Avoid overpaying or underselling. 
Spot hidden liabilities. 
Strengthen negotiation positions. 
Speed up funding and approvals. 

3. Frameworks, Standards, or References 

Blend recognised methods with rigorous testing. 

  • Frameworks: DCF, EBITDA multiples, asset-based valuation; red-flag due diligence. 

  • Standards: IFRS for SMEs (measurement/disclosure areas). 

  • References: CIBA valuation/due diligence practice guidance. 

  • What your accountant will actually do: Build valuation models, perform financial/tax due diligence, draft red-flag reports, support SPA terms.  

4. How to Apply  

Scope the deal and test assumptions early. 

  1. Define purpose (sale, investment, B-BBEE, financing). 

  2. Provide financials and forecasts. 

  3. Accountant prepares valuation and DD scope. 

  4. Review findings and adjust price/terms. 

  5. Close and plan post-deal integration. 

5. Common Mistakes to Avoid 

Assumptions drive value, don’t guess. 

  • Using a single method only. 

  • Ignoring tax exposures/contingencies. 

  • Relying on untested forecasts. 

  • Skipping working-capital analysis. 

9. Need Help? 

Still stuck? We’re here to help. 

  • [Open a Support Ticket – tagged: Valuations]