This pilot study investigates general business and asset valuation techniques and makes recommendations as to which techniques are applicable to companies in the Australian information technology industry. Data for the report was gathered from a literature search and a series of focus interviews with a range of business owners, accountants, financial advisers, consultants and solicitors with an interest in valuations.
The report concludes that general business valuation techniques are currently applied to information technology companies and that no specific valuation methodology currently exists for these businesses. An industry study shows that information technology companies are sufficiently different to justify a special approach.
Due to the nature of the industry in Australia, a limited supply of publicly available financial records and information prevented a valuation model from being developed during this pilot project. However, further research is proposed with a view to developing a specialised valuation model.