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Business Capital Gains
Readiness Report™
Coastal Systems Advisory Pty Ltd
Understand Your Business Value Before Major Tax Changes
Potentially Affect Your Wealth
Powered by the IPAPS™ Business Valuation Methodology
Dear Coastal Systems Advisory Pty Ltd,
Thank you for entrusting ThinkIP with the preparation of your Business Capital Gains Readiness Report™.
Many business owners are currently asking whether potential changes to capital gains tax, succession timing or retirement planning could affect the value of their most significant asset: their business. This report has been developed to provide the business valuation information required before those strategic decisions can be made.
This report establishes a Forecast Benchmark Enterprise Value for Coastal Systems Advisory Pty Ltd as at 30 June 2027, based on information available at the report issue date and the stated forecast assumptions. It provides a dated reference point that may assist with future strategic planning, ownership restructuring, succession, estate planning, shareholder discussions, business transfers, capital gains tax timing considerations and conversations with professional advisers.
This forecast benchmark is based on information available up to the Information Cut-Off Date of 7 July 2026 and the stated assumptions applying to the Forecast Valuation Date of 30 June 2027. Events occurring after the Information Cut-Off Date are not reflected in this assessment.
The value in this report has been determined from the financial and commercial information supplied, together with an assessment of maintainable earnings, strategic assets, intellectual property, transferability, dependency and commercial risk.
The Forecast Benchmark Enterprise Value is:
Forecast Benchmark Enterprise Value
$1,355,200
Low
$1,151,920
Most Likely
$1,355,200
High
$1,558,480
This report does not provide taxation or legal advice. Its purpose is to document an evidence-based business value benchmark at a defined date, so future changes in value can be assessed against a clear starting point before any major strategic or ownership decisions are made.
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Certified Business Valuer
Member, Australian Valuers Institute
Founder, ThinkIP™
Creator of IPAPS™
Methodology v1.1
Dr Maurice Roussety is a Certified Business Valuer and the creator of the IPAPS™ methodology, developed from doctoral research into business, intellectual property and goodwill valuation.
Executive Summary
Executive Summary
Purpose
To establish a Forecast Benchmark Enterprise Value for Coastal Systems Advisory Pty Ltd as at 30 June 2027, providing business owners with a documented value reference before strategic tax, succession or ownership decisions.
Scope
Assessment of maintainable earnings, strategic assets, intellectual property, transferability, dependency and commercial risk. Based on three years of financial data and a 17-section structured questionnaire.
Method
IPAPS™ Benchmark Enterprise Value Methodology v1.1. Maintainable earnings multiplied by industry multiple, adjusted for IP strength, risk and strategic assets.
Value
$1,355,200
Forecast Benchmark Enterprise Value
Low
$1,151,920
Most Likely
$1,355,200
High
$1,558,480
Maintainable Earnings
$400,000
Industry Multiple
3.5x
Overall IPAPS Score
71/100
Confidence
HIGH
Value Position
The benchmark sits at the midpoint of the estimated range. The business demonstrates genuine commercial substance with identifiable opportunities for value improvement.
Executive Summary
Executive Summary (Continued)
Confidence & Key Assumptions
Based on three years of financial statements, current management accounts and a completed 17-section questionnaire. FY26 tax return not yet filed; IP records not supplied.
The HIGH confidence classification reflects the completeness and consistency of the principal financial information supporting maintainable earnings, together with the broader management and operational evidence supplied. The absence of the FY26 lodged tax return and certain IP records has been recognised as a limitation, but was not assessed as sufficiently material to reduce the overall confidence classification.
Key Forecast Assumptions
- • Maintainable earnings based on normalised FY26 EBITDA
- • Industry multiple from transaction databases (mid range)
- • Risk adjustment reflects dependency and transferability
- • Strategic asset premium for proprietary methodology
- • Valuation date: 30 June 2027 (forecast status)
Principal Risks & Limitations
IP Protection
HighNo registered trademarks despite strong brand
Founder Dependency
HighFounder manages sales directly
Scale Potential
MediumSystems need further development for expansion
Transferability
HighSystems documentation only partial
Limitations
This report provides a professional Forecast Benchmark Enterprise Value prepared under the IPAPS™ Benchmark Enterprise Value Methodology™. It is not an independent expert valuation, ATO determination, taxation opinion, legal opinion or transaction-specific valuation. The assessment is based on information supplied by management and the evidence available at the report issue date. Certain intellectual property records were not independently verified.
Recommendations Summary
Register core trademarks with IP Australia
30 days · $50,000
Implement contractor IP assignment agreements
30 days · $30,000
Establish confidentiality and NDA protocols
30 days · $15,000
Document top 5 operating procedures
60 days · $20,000
Key Takeaways
The Forecast Benchmark Enterprise Value is $1,355,200 as at 30 June 2027.
Confidence is HIGH based on three years of financial data.
The primary value suppressors are IP protection gaps (partial contractor assignments, partial IP register) and founder-continuity planning.
Hidden strategic assets contribute approximately $665,000 in unrecognised value.
Addressing the 12-Month Value Improvement Plan could materially improve enterprise value.
Professional Opinion
Professional Opinion
Forecast Benchmark Enterprise Value
$1,355,200
As at 30 June 2027
Based on the financial information supplied, the management questionnaire responses and the assumptions outlined within this report, it is my opinion that the Forecast Benchmark Enterprise Value of $1,355,200 for Coastal Systems Advisory Pty Ltd as at 30 June 2027 is reasonable and supportable within the stated valuation range of $1,151,920 to $1,558,480.
This opinion is formed using the IPAPS™ Benchmark Enterprise Value Methodology™ v1.1, which assesses maintainable earnings, intellectual property strength, revenue quality, dependency risk, transferability and commercial risk. The methodology applies evidence-based adjustments to a base enterprise value derived from normalised maintainable earnings and industry transaction multiples.
The confidence rating of HIGH reflects the completeness and consistency of the principal financial records, the depth of management information provided and the overall quality of the evidence available for assessment. The rating acknowledges that certain intellectual property records were not supplied and the FY26 tax return had not been filed at the report date.
This professional opinion is an indicative benchmark assessment. It is not an independent expert valuation, transaction-specific valuation, taxation opinion or legal opinion. Professional advisers should be consulted before implementing any strategy based on this assessment.
Dr M Insight™
“Businesses rarely become valuable by accident. They become valuable when owners deliberately reduce dependency, protect intellectual property and improve transferability. The value in this report is a starting point, not a conclusion.”
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Professional Opinion issued by
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Certified Business Valuer
Member, Australian Valuers Institute
Founder, ThinkIP™ | Creator of IPAPS™
Why This Report Matters
Understanding your business value before major strategic decisions
This report has been developed for Australian business owners seeking a professional assessment of the enterprise value of their business in light of potential future taxation changes, succession planning, retirement objectives or business sale considerations.
The report establishes a benchmark enterprise value using the IPAPS™ valuation methodology while identifying opportunities to improve business value before any future transaction or ownership transition.
What is my business's forecast benchmark value?
Should I consider selling earlier?
How exposed am I if tax laws change?
What valuable assets or opportunities may be hidden in my business?
Every significant business decision begins with understanding the forecast benchmark value of the business.
Important: This report does not provide taxation advice. It provides the business valuation information required before strategic tax, succession or exit decisions can be made. Professional advisers should be consulted before implementing any strategy.
Your Forecast Value Benchmark
A one-page executive record of your assessed business value
| Business | Coastal Systems Advisory Pty Ltd |
| ABN / ACN | 42 138 762 591 |
| Valuation Date | 30 June 2027 |
| Report Issue Date | 7 July 2026 |
| Forecast Benchmark Enterprise Value | $1,355,200 |
| Low Value | $1,151,920 |
| High Value | $1,558,480 |
| Confidence | HIGH |
| Methodology | IPAPS™ Benchmark Enterprise Value Methodology™ v1.1 |
| Assessment ID | 2027-BV-CSA-001 |
This report estimates a Forecast Benchmark Enterprise Value for the business as at 30 June 2027, based on information available at the report issue date and the stated forecast assumptions. It provides a documented reference point against which future changes in financial performance, ownership, markets, legislation and commercial risk may be considered.
Any use of this report for taxation, legal, financial reporting or transaction purposes should be discussed with appropriately qualified advisers.
Forecast Assumptions
Information Cut-Off Date: 7 July 2026
Forecast Valuation Date: 30 June 2027
- • Maintainable EBITDA remains approximately $400,000
- • No material customer loss or ownership change occurs
- • The current operating structure continues
- • No specific taxation or legislative change has been modelled
- • No material event occurs that would require revaluation
The Valuer Behind Your Benchmark™
Professional authority behind your Business Capital Gains Readiness Report
A business valuation is only as credible as the methodology, evidence and professional judgement supporting it. The Business Capital Gains Readiness Report™ is prepared using the IPAPS™ Benchmark Enterprise Value Methodology™ under the direction of Dr Maurice Roussety, PhD, MBA, MLED, CBV.
Certified Business Valuer
Certified Business Valuer designation through the Australian Valuers Institute.
Doctoral Research
PhD research in intellectual property, franchise goodwill and business valuation.
40+ Years of Commercial Experience
Senior leadership, advisory, licensing, franchising and business growth experience.
500+ Valuation and Advisory Engagements
Business valuation and commercial advisory experience across SMEs and growth businesses.
Creator of IPAPS™
Developer of the Intellectual Property Assets Pricing System™.
University Lecturer
Experience teaching business, strategy, entrepreneurship and commercialisation.
Dr M combines formal valuation credentials, doctoral research and practical commercial experience. His work focuses not only on establishing what a business is worth, but on identifying what creates, protects and increases that value.
Dr Maurice Roussety is a Certified Business Valuer and member of the Australian Valuers Institute. The IPAPS™ methodology is a proprietary framework developed from doctoral research. The Australian Valuers Institute does not endorse or approve the IPAPS™ methodology, and this report is not an ATO-approved, statutory or government-certified valuation.
Why Establish a Business-Value Benchmark Now?
Understanding the value of documenting your business value before you need it
Many Australian business owners have never documented the value of their business. A valuation is often sought only after a major event has occurred, such as a proposed sale, shareholder dispute, restructure, succession, estate-planning requirement or taxation issue.
Establishing a benchmark earlier provides a dated record of the business's financial and commercial position. It can help owners and advisers understand how enterprise value changes over time and distinguish between value that existed at the benchmark date and value created or lost subsequently.
Taxation Preparedness
A dated benchmark may assist your advisers when considering future taxation or ownership events.
Succession Planning
Establishes a reference point for ownership transition discussions and succession timelines.
Ownership Restructuring
Documents the value baseline before any restructure, share transfer or entity change.
Estate Planning
Provides a recorded value that may inform estate planning and intergenerational discussions.
Partner or Shareholder Changes
Creates an agreed reference point for partner entries, exits or shareholder disputes.
Future Business Sale
Gives you a documented starting value to track improvements before approaching the market.
This benchmark may assist your advisers when considering future taxation or ownership events. ThinkIP does not advise on whether any specific legislative measure applies to your business.
Key Takeaways
A benchmark captures value before change occurs.
It assists professional advisers with strategic decisions.
It creates a reference point for future value measurement.
It supports succession, restructuring and estate planning.
Your Business Value Timeline
How a dated benchmark fits into your business ownership journey
Historical Performance
Financial track record and business position leading up to the benchmark date
30 June 2027 Benchmark
Forecast Benchmark Enterprise Value estimated
Future Legislative or Market Changes
Changes in tax law, market conditions or industry dynamics after the benchmark date
Ownership, Succession or Transaction Event
Sale, restructure, succession or transfer requiring a current valuation
Comparison With Forecast Benchmark
Assess how value has changed since the benchmark date using the documented reference point
The graphic above illustrates how a dated benchmark captures value at a specific point in time. It does not imply that this report determines future tax liability. The benchmark establishes a documented reference point that may be compared with future valuations following changes in performance, ownership, markets or legislation.
Part B
Business Analysis & Strategic Assessment
IPAPS scorecard, value drivers, hidden wealth and value leakage
Executive Business Value Summary
Board-level briefing on your business value position
Benchmark Enterprise Value
$1,355,200
As at 30 June 2027
Estimated Value Range
Low
$1,151,920
Most Likely
$1,355,200
High
$1,558,480
Confidence
HIGH
Overall IPAPS Score
71/100
Business Strength
Moderate
70/100
Risk Discount
12.0%
Top 3 Value Drivers
Top 3 Improvement Opportunities
1. Register core trademarks with IP Australia
30 days
2. Implement contractor IP assignment agreements
30 days
3. Establish confidentiality and NDA protocols
30 days
Valuation Adjustment
+10.0% / −12.0%
Strategic Asset Premium and Risk Discount applied to Base Enterprise Value per v2.4b methodology.
Dr M's Strategic Perspective
Dr Maurice Roussety, PhD, MBA, MLED, CBV
This assessment reveals a business with genuine commercial substance. The Forecast Benchmark Enterprise Value of $1,355,200 reflects a company that has built real earnings capacity and market presence over eight years, yet is being held back by two structural issues common to owner-managed professional services firms: founder dependency and inadequate intellectual property protection.
Strategic Value Considerations
Strategic commentary on the factors shaping your business value
Forecast Value Position
The business sits at a Forecast Benchmark Enterprise Value of $1,355,200, reflecting genuine commercial substance built over eight years. The business is established, profitable and generating maintainable earnings of $400,000. This is a solid foundation, but the forecast benchmark value represents a midpoint rather than a ceiling.
Market Readiness
The business demonstrates moderate market readiness with diversified revenue, established brand presence and a functional management team. However, partial systems documentation and incomplete IP protection reduce buyer confidence. Addressing these gaps could shift the business from moderately ready to highly attractive within twelve months.
Risk Exposure
Total identified value leakage is approximately $552,000, primarily driven by founder dependency and unprotected intellectual property. These are structural risks that buyers will identify immediately during due diligence. Proactive remediation before any transaction would preserve value that might otherwise be negotiated away.
Founder Dependency
The founder remains central to sales and key client relationships, with the business unable to operate independently for 90 days. This is the single largest value leakage point and the primary reason the valuation sits in the middle of the range rather than at the top. Reducing founder dependency is the highest-impact strategic action available.
Revenue Quality
Recurring revenue at 42% with 82% customer retention provides a foundation of predictable cash flow. However, the 58% transactional component introduces volatility that buyers discount. Reaching 50%+ recurring revenue would shift the narrative from moderately predictable to highly predictable, directly supporting a higher valuation multiple.
Transferability
The business is moderately transferable. Management is reasonably strong and client contracts are transferable, but systems documentation is partial and no second-tier management depth exists. A new owner could take over with moderate transition support, but full documentation and formalised contracts would reduce perceived transition risk.
Commercialisation Opportunities
The proprietary advisory methodology represents significant untapped commercialisation potential. Packaging it into a training program, digital tool or licensable product would create scalable revenue, reduce founder dependency and demonstrate growth potential. No commercialisation initiatives have been executed yet, so this value is theoretical but substantial.
Customer Concentration
No single client exceeds 18% of revenue, and the diversified client base across multiple service lines is a genuine competitive advantage. This low concentration reduces buyer risk and supports the current valuation. Maintaining this diversification during any growth or ownership transition is essential to preserving enterprise value.
Business Snapshot
Client and business profile at the valuation date
Business Profile
Financial Profile
Report Details
Report Date
7 July 2026
Valuation Date
30 June 2027
Methodology
IPAPS™ v1.1
This snapshot provides the foundational business and financial data used throughout this report. All financial figures are expressed in Australian Dollars (AUD) and are based on information provided by the client. Maintainable EBITDA has been normalised for owner-related and one-off items in accordance with the IPAPS™ methodology.
Forecast Benchmark Enterprise Value™
The central valuation output of the IPAPS™ methodology
Forecast Benchmark Enterprise Value™
$1.36 Million
Exact Value
$1,355,200
Most likely forecast benchmark enterprise value as at 30 June 2027
Low Value
$1,151,920
Conservative scenario
Most Likely
$1,355,200
Central estimate
High Value
$1,558,480
Optimistic scenario
Value Range
$1,151,920
to $1,558,480
Confidence Rating
HIGH
IPAPS™ Master Score
71
Your Value Story
Understanding how your business achieved its valuation
Every business valuation tells a story. The narrative below traces the path from your raw financial performance through to the final Benchmark Enterprise Value™, explaining how each factor contributed to the outcome.
Revenue
$1,610,000
Maintainable Earnings
$400,000
Strategic Assets
+10%
Risk Adjustment
−12%
Enterprise Value
$1,355,200
Revenue → Maintainable Earnings
Your business generates $1,610,000 in annual revenue. After normalising for owner salary adjustments, personal expenses and one-off items, the maintainable EBITDA (the true ongoing earning capacity) is $400,000. This represents an EBITDA margin of 24.8%, which is above industry expectations for professional services.
Strategic Assets → Value Premium
Your strategic asset score of 76 out of 100 generates a +10% premium applied to the base enterprise value. This reflects the strength of your brand, customer relationships and proprietary methodologies, which traditional valuations overlook but which materially contribute to business value.
Risk → Value Discount
The IPAPS™ risk assessment identified a total risk discount of 12%, driven primarily by founder dependency and weak IP protection. This discount is applied multiplicatively, reducing the premium-adjusted value to reflect the real risks a new owner would face. Addressing these risks is the fastest path to value uplift.
The Result: Benchmark Enterprise Value™
The combination of these factors produces a Benchmark Enterprise Value™ of $1,355,200, which is the most likely enterprise value of your business as at 30 June 2027. This value sits within a range of $1,151,920 (low) to $1,558,480 (high), reflecting the reasonable range of outcomes under the methodology.
IPAPS™ Scorecard
7 value drivers assessed against industry benchmarks and best practice
Master Score
71
Drivers Above Benchmark
5
of 7
Drivers Below Benchmark
2
of 7
Revenue Quality™
Weight: 20%
76
Founder Dependency™
Weight: 15%
62
Strategic Assets™
Weight: 20%
76
IP Protection™
Weight: 10%
58
Transferability™
Weight: 15%
72
Commercialisation™
Weight: 10%
74
Scale Potential™
Weight: 10%
70
Scorecard Interpretation
Scores are benchmarked against provisional IPAPS™ expert benchmarks for Australian professional services SMEs. Drivers scoring above the benchmark indicate competitive strength; those below represent opportunities for value improvement. The vertical marker on each bar indicates the benchmark position. Best-practice thresholds are provisional IPAPS™ expert benchmarks and are not yet statistically validated population percentiles. Benchmark confidence: Developmental. Sample size: Not yet statistically sufficient.
Key Takeaways
The master score reflects overall business strength across 7 dimensions.
Drivers above benchmark indicate competitive advantage.
Drivers below benchmark represent improvement opportunities.
Addressing weak drivers is the fastest path to value uplift.
Revenue Quality™
Weight: 20% of IPAPS Master Score
Current Position
76
Target Position
90
Industry Benchmark
71
Commercial Meaning
42% recurring revenue and 82% retention provide a foundation of predictable cash flow, but the 58% transactional component introduces volatility that buyers will discount.
Buyer Impact
Buyers will value the recurring portion at a premium multiple but discount the transactional revenue. Reaching 50%+ recurring would shift the narrative from moderately predictable to highly predictable.
EV Influence
High - directly affects the valuation multiple
Improvement Priority
Medium
Expected Value Impact
$76,000
Existing Strengths
- +42% recurring revenue above industry average
- +82% customer retention with diversified base
- +No single client exceeds 18% concentration
Current Shortcomings
- -58% transactional revenue introduces volatility
- -Recurring revenue below 50% best-practice threshold
Dr M's Observation
Recurring revenue almost always commands stronger acquisition multiples than one-off transactional revenue. Buyers pay for predictability, not potential.
Founder Dependency™
Weight: 15% of IPAPS Master Score
Current Position
62
Target Position
90
Industry Benchmark
65
Commercial Meaning
The business cannot operate without the founder for 90 days. The owner manages sales directly and documented systems are partial. A buyer is effectively purchasing a business that requires the current owner to function.
Buyer Impact
This is the first concern any buyer will raise. No buyer will pay full value for a business that cannot operate without its current owner. This is the single largest value leakage point.
EV Influence
Very High - the primary driver of the risk discount
Improvement Priority
Critical
Expected Value Impact
$152,000
Existing Strengths
- +Experienced team of 9 staff with institutional knowledge
- +Diversified revenue base across multiple service lines
Current Shortcomings
- -Founder manages sales directly
- -No documented succession plan
- -Business cannot operate 90 days without founder
Dr M's Observation
Businesses become more valuable when the business can operate without the founder. The day your business can operate effectively without you is the day it becomes materially more valuable and more attractive to buyers.
Strategic Assets™
Weight: 20% of IPAPS Master Score
Current Position
76
Target Position
90
Industry Benchmark
70
Commercial Meaning
Strong brand reputation and customer relationships provide genuine commercial substance. Software and data assets are partially developed. IP and content represent significant untapped value not yet formally documented.
Buyer Impact
Buyers will recognise brand and relationship value but discount undocumented assets. Formalising the IP register would increase buyer confidence and support a higher valuation.
EV Influence
High - contributes to the strategic asset premium
Improvement Priority
High
Expected Value Impact
$76,000
Existing Strengths
- +Strong brand reputation generating inbound referrals
- +Well-developed customer and supplier relationships
- +Proprietary advisory methodology central to service delivery
Current Shortcomings
- -Software and data assets only partially developed
- -IP and content not formally documented
- -Strategic assets not commercially valued
IP Protection™
Weight: 10% of IPAPS Master Score
Current Position
58
Target Position
90
Industry Benchmark
62
Commercial Meaning
No registered trademarks despite a strong brand. Copyright materials exist but are undocumented. Contractor IP assignment is partial. Trade secret procedures are absent. This creates ownership uncertainty.
Buyer Impact
Unprotected IP is a due diligence red flag. Buyers will either discount the valuation or require warranties that shift risk back to the seller. IP protection is the cheapest competitive moat available.
EV Influence
High - affects both the strategic premium and the risk discount
Improvement Priority
Critical
Expected Value Impact
$173,000
Existing Strengths
- +Copyright materials exist across methodologies and content
- +Established contractor relationships
Current Shortcomings
- -No registered trademarks despite strong brand
- -Contractor IP assignment only partial
- -No trade secret procedures or confidentiality protocols
Dr M's Observation
Protected intellectual property is the cheapest form of competitive moat available to most SMEs. Trademark registration costs less than a single client engagement, yet protects your brand indefinitely.
Transferability™
Weight: 15% of IPAPS Master Score
Current Position
72
Target Position
90
Industry Benchmark
68
Commercial Meaning
Management team is reasonably strong and client contracts are transferable but could be more formalised. Systems documentation is partial. A new owner could take over with moderate transition support.
Buyer Impact
Buyers will factor in transition costs and risk. Full documentation and formalised client contracts with assignment clauses would reduce perceived transition risk and support a higher valuation.
EV Influence
Medium-High - affects the risk discount and transition provisions
Improvement Priority
High
Expected Value Impact
$98,000
Existing Strengths
- +Management team is reasonably strong
- +Client contracts are transferable
- +A new owner could take over with moderate transition support
Current Shortcomings
- -Systems documentation only partial
- -Contracts could be more formalised with assignment clauses
- -No second-tier management depth
Commercialisation™
Weight: 10% of IPAPS Master Score
Current Position
74
Target Position
90
Industry Benchmark
60
Commercial Meaning
Strong opportunities exist in training programs and strategic partnerships. Moderate potential in licensing, digital products and subscription models. None have been executed, so the value is theoretical.
Buyer Impact
Buyers will recognise the potential but will not pay for it until demonstrated. Packaging even one initiative would convert theoretical value into demonstrable value.
EV Influence
Medium - potential upside not yet reflected in the current valuation
Improvement Priority
Medium
Expected Value Impact
$87,000
Existing Strengths
- +Strong opportunities in training programs and partnerships
- +Proprietary methodology has commercialisation potential
- +Moderate potential in licensing and digital products
Current Shortcomings
- -No commercialisation initiatives yet executed
- -Methodology not packaged as deliverable product
- -Commercialisation value is theoretical, not demonstrated
Scale Potential™
Weight: 10% of IPAPS Master Score
Current Position
70
Target Position
90
Industry Benchmark
65
Commercial Meaning
Good capacity to scale with existing infrastructure. Technology supports growth and market opportunity is confirmed. Systems need further development to fully support expansion without proportional cost increases.
Buyer Impact
Buyers seeking growth stories will see potential but question execution capacity. Demonstrating scalable systems and a clear expansion plan would support a growth premium.
EV Influence
Medium - supports future value growth but not yet reflected
Improvement Priority
Medium
Expected Value Impact
$108,000
Existing Strengths
- +Good capacity to scale with existing infrastructure
- +Technology supports growth
- +Market opportunity is confirmed
Current Shortcomings
- -Systems need further development for expansion
- -No documented interstate expansion plan
- -Onboarding workflows not yet automated
Strategic Asset Register™
Comprehensive inventory of strategic assets and their protection status
| Asset | Description | Protection | Importance | Commercial | Risk |
|---|---|---|---|---|---|
| Brand | Established brand equity with 8 years of market presence in Queensland professional services. | Unregistered | High | Licensing | |
| Systems | Partially documented operating procedures for service delivery and client management. | Partial | High | Training Product | |
| Processes | Standardised service delivery workflows and quality controls. | Internal | Medium | Training Product | |
| Customer Database | 8 years of client data with 82% retention and diversified base. | Contractual | Critical | Strategic Alliance | |
| Know‑how | Proprietary advisory expertise embedded in the team of 9 experienced staff. | Unprotected | High | Training Product | |
| Software | Proprietary assessment tools and client management frameworks. | Unprotected | Medium | SaaS Product | |
| Training Content | 3–5 unregistered IP items including methodologies, frameworks and content. | Unregistered | High | Licensing | |
| Supplier Relationships | Long-term supplier arrangements supporting operations. | Contractual | Medium | Limited | |
| Contracts | Client contracts with moderate transferability provisions. | Contractual | High | Limited | |
| Trade Secrets | Proprietary methodologies not formally documented as trade secrets. | None | High | Licensing | |
| Digital Assets | Digital frameworks, client portals and online delivery systems. | Unprotected | Medium | SaaS Product | |
| Methodologies | Battle-tested consulting frameworks central to service delivery. | Unprotected | Critical | Licensing | |
| Content Library | Training materials, articles and thought leadership content. | Copyright | Medium | Digital Products |
Total
13
High Risk
5
Medium Risk
5
Low Risk
3
This register identifies strategic assets that contribute to enterprise value beyond tangible balance sheet items. Protection status refers to the legal or contractual mechanisms safeguarding each asset. Risk rating reflects the potential value erosion if the asset is not adequately protected or transferable.
Hidden Asset Value Matrix
Two-dimensional view of commercial value versus protection level
Protection Level: Weak to Strong
How to Read This Matrix
Each circle represents a hidden asset in your business. The horizontal position shows its commercial value (how much it contributes to revenue). The vertical position shows its protection level (how legally or contractually safeguarded it is). Circle size indicates estimated dollar contribution. Assets in the bottom-right quadrant (high value, weak protection) are your most urgent priorities for formal protection.
Hidden Asset Contribution
Where the hidden value in your business actually resides
Gross Identified Value
$925,000
Recognised Contribution
$665,000
Not Currently Recognised
$260,000
Overlap, immaturity or weak protection
Proprietary Advisory Methodology
100%
Client Database & Relationships
88%
Brand Goodwill & Reputation
71%
Team Expertise & Know-How
57%
Reconciliation Explanation
The gross identified value of $925,000 includes all strategic assets identified through the IPAPS methodology. The recognised contribution of $665,000 reflects assets with sufficient commercial evidence, protection or transferability to support their value in a business valuation context. The difference of$260,000 reflects assets that overlap with other assets, are not sufficiently mature, lack formal protection, or do not yet have sufficient commercial evidence to be recognised.
Dr M's Observation
Most owners underestimate the value contained in documented systems rather than financial assets. A well-documented business is worth more than a more profitable business with no systems.
Strategic Value Opportunities
ThinkIP analysis of untapped value in your business
Beyond the value reflected in your financial statements lies a layer of strategic value: intellectual property, brand equity, systems, data and commercialisation potential. These opportunities, if identified and protected, can materially increase your enterprise value. The status indicators below reflect the current position of this business against best practice.
Brand & Trademark
Core trading name is trademark-registered. Maintain and monitor renewals; consider additional classes for NSW expansion.
IP Register
Formal IP register is partial / being completed. Completing it establishes a documented ownership chain.
Contractor Assignments
Contractor IP assignments are only partial. Completing these removes a due-diligence red flag for buyers.
Systems & SOPs
Approximately 80% of core operations documented. Systems score of 90 is the highest in this assessment.
Customer Data
105 active customers, 89% retention, 5.5-year average relationship. CRM-based relationships, not founder-only.
Recurring Revenue
52% recurring revenue — above the 50% best-practice threshold. Preserve or improve this position.
Compliance Service
New recurring compliance-support service in development. Validate with real customers to convert potential into value.
NSW Expansion
Entry into northern NSW using existing platform. Document evidence without inventing revenue.
Succession Planning
Succession and key-person plans are partial. Completing these reduces exit risk and increases transferability.
ThinkIP Insight: No standalone dollar value is assigned to individual opportunities unless produced by an approved, traceable scenario calculation. The 12-Month Value Improvement Plan™ identifies the specific actions, evidence requirements and scenario pathways for addressing each opportunity. Actual value impact will be determined at the next valuation using updated financial information, evidence and methodology.
What Increased Your Value
The factors driving your enterprise value, and those holding it back
Value Drivers Identified
Strong profitability with normalised EBITDA supporting maintainable earnings
Established customer base with 82% retention rate
Diversified revenue across multiple service lines
Proprietary advisory methodology representing hidden value
8 years of trading history with consistent performance
Above-average recurring revenue at 42%
Low customer concentration (no client exceeds 18%)
Factors Suppressing Value
Founder dependency: business cannot operate independently for 90 days
High ImpactNo registered trademarks protecting brand and methodology
High ImpactNo documented succession or transition plan
High ImpactRecurring revenue below 50% best-practice threshold
Medium ImpactOperating procedures only partially documented
Medium ImpactProprietary methodology not commercialised
Medium ImpactHidden Asset Value
$665,000
Indicative — not on balance sheet
Value Leakage
$552,000
Diagnostic — not automatically recoverable
Important: Hidden Asset Value and Value Leakage are separate diagnostic measures. They are not netted against each other. Subtracting leakage from hidden assets does not produce a meaningful recovery figure. These metrics must not be added to or subtracted from the Forecast Benchmark Enterprise Value™.
Dr M Insight™
“The difference between your current value and your potential value is not random. It is the direct result of specific, identifiable factors that can be systematically addressed. The drivers are your foundation; the suppressors are your roadmap.”
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Key Takeaways
Seven value drivers support the current enterprise value.
Six factors are actively suppressing value, three at high severity.
Hidden strategic assets contribute $665,000 in unrecognised value.
Addressing the high-severity suppressors is the fastest path to value uplift.
Value Leakage Analysis™
Identifying and quantifying value erosion across the business
Total Estimated Value Leakage
$552,000
40.7% of Benchmark Enterprise Value™ — diagnostic measure, not automatically recoverable cash
Founder Dependency
Owner manages sales directly and business cannot operate 90 days without founder.
Weak IP Protection
No registered trademarks, partial contractor IP assignment, no trade secret procedures.
Partial Documentation
Systems and processes only partially documented, reducing transferability.
Low Recurring Revenue
Only 42% recurring revenue vs 50%+ best practice, creating a revenue quality drag.
No Commercialisation
Methodologies and content not yet packaged into licensable or scalable products.
Interpretation
Value leakage represents the estimated enterprise value being suppressed due to weaknesses in identified value drivers. The figures above are indicative, based on the assessed severity of each issue and its typical impact on valuation multiples within the professional services industry. The IPAPS™ methodology treats value leakage as a diagnostic measure of potential value impairment — not as automatically recoverable cash, not as additive enterprise value, and not as a promise of future improvement.
Important: Value Leakage™ is a diagnostic measure of potential value impairment. It is not automatically recoverable cash, not additive to the Forecast Benchmark Enterprise Value™, and not a promise that addressing each item will produce the indicated amount. Individual leakage estimates are not separately realisable assets, may overlap because they influence the same underlying value drivers, and must not be summed. Actual value at the next valuation will depend upon financial performance, implementation quality, supporting evidence, market conditions and application of the approved methodology at that time.
Value Confidence Matrix
Evidence-based confidence assessment across five verification dimensions
| Evidence Category | Rating | Assessment | Basis |
|---|---|---|---|
| Financial Evidence | Strong | 3 years P&L, balance sheet, management accounts and revenue records provided. | |
| Operational Evidence | Moderate | Operating procedures partially documented; management questionnaire completed. | |
| IP Evidence | Weak | No registered trademarks; IP register not supplied; methodology undocumented. | |
| Commercial Evidence | Moderate | Customer concentration, contracts and revenue composition analysed. | |
| Forecast Confidence | Moderate | Forecast assumptions reasonable; maintainable earnings supported by history. | |
| Overall Confidence | HIGH | Evidence confidence score: 84/100 |
Critical Evidence
88%
Coverage
Important Evidence
81%
Coverage
Supporting Evidence
75%
Coverage
Dr M Insight™
“Confidence is not a feeling. It is the product of evidence quality, evidence coverage and methodology rigour. The weakest link in this assessment is intellectual property evidence. Strengthening that single dimension would elevate overall confidence from HIGH to VERY HIGH.”
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Reading this matrix: Five-star ratings indicate strong, independently verified evidence. Four-star ratings indicate management-supplied information with reasonable verification. Two-star ratings indicate gaps in evidence that reduce confidence in that dimension. The overall rating reflects the weighted average across all categories.
Commercialisation Potential™
Assessment of opportunities to monetise strategic assets
Current Score
74
Industry Benchmark
60
Readiness
Moderate
Strategic Observations
Strong opportunities in training programs and strategic partnerships. Moderate potential in licensing, digital products, and subscription models. International expansion is low but interstate expansion is viable.
Commercialisation Opportunities
| Opportunity | Difficulty | Est. Revenue | EV Impact | Priority |
|---|---|---|---|---|
| Advisory Training Program | Medium | $180,000 | $280,000 | High |
| Strategic Partnerships | Low | $120,000 | $190,000 | High |
| Digital Assessment Tool (SaaS) | High | $95,000 | $240,000 | Medium |
| Subscription Advisory Tier | Medium | $85,000 | $150,000 | Medium |
| Interstate Expansion | Medium | $150,000 | $200,000 | Medium |
| Licensing Methodology | High | $60,000 | $160,000 | Low |
Risk Commentary
Commercialisation opportunities carry varying levels of execution risk and capital requirement. Opportunities rated as High difficulty require significant investment in product development, market validation or operational capability. The estimated value impact represents the potential uplift to enterprise value if the opportunity is successfully executed, not guaranteed revenue. A phased approach beginning with lower-difficulty, higher-priority opportunities is recommended to build commercialisation capability before pursuing more complex initiatives.
Commercialisation opportunity impacts are standalone scenarios and must not be added to the approved cumulative recommendation impact or the current Forecast Benchmark Enterprise Value\u2122 without a separate scenario reconciliation.
Financial Position & Capital Efficiency Analysis™
Balance sheet diagnostics benchmarked against industry norms (Methodology v2.4b)
Working Capital Efficiency Score™
Excellent
0–100, higher is more efficient
Balance Sheet Health Score™
Excellent
Liquidity · leverage · asset utilisation
Working Capital
$404,000
16.8% of revenue
Current Ratio
2.81
Industry norm 1.5
Debt / EBITDA
0.44x
Industry norm 1.5x
Cash Conversion Cycle
-8 days
Industry norm 15 days
Debtor Days
64 days
Industry norm 45 days
Fixed Asset Intensity
11.7%
Industry norm 8%
3-Year Working Capital Trend
| Year | Working Capital | WC % of Revenue | Debtor Days | Cash Cycle |
|---|---|---|---|---|
| FY 2023/24 | $268,000 | 12.8% | 52 | -7 |
| FY 2024/25 | $329,000 | 14.6% | 58 | -7 |
| FY 2025/26 | $404,000 | 16.8% | 64 | -8 |
Capital Efficiency Value Leakage™
Est. Cash Release
$256,110
| Category | Current | Benchmark | Opportunity | Cash Release | Priority |
|---|---|---|---|---|---|
| Excess Debtors | 64 days | 45 days | 19 days above benchmark | $124,110 | High |
| Excess Working Capital | 16.8% | 15% | Capital tied up above industry norm | $44,000 | Low |
| Under-utilised Fixed Assets | 11.7% | 8% | Fixed assets above industry intensity | $88,000 | Medium |
Observations
- Trade debtors at 64 days exceed the industry norm of 45 days by 19 days.
- Cash conversion cycle is favourable at -8 days, indicating the business is funded by its suppliers and customers.
- Current ratio of 2.81 indicates adequate short-term liquidity.
- Debt to EBITDA of 0.4x is conservative and supports valuation confidence.
Recommendations
- Reduce debtor collection period through tighter credit terms and automated follow-up.
- Dispose of under-utilised fixed assets or idle equipment to release capital.
Methodology Note
The Capital Efficiency Engine™ scores are diagnostic only and do not directly adjust the Benchmark Enterprise Value™. They enhance interpretation, confidence and advisory value by quantifying capital trapped in the business and benchmarking liquidity, leverage and asset utilisation against industry norms. This avoids double-counting risks already reflected in maintainable earnings, industry multiples and the enterprise risk adjustment. Benchmarks are sourced from the admin-editable Capital Efficiency Benchmark register (Methodology v2.4b).
Part C
Strategic Roadmap & Pathway
Dr M's Strategic Value Roadmap, decision support and next steps
Methodology Diagram
How the IPAPS™ methodology produces your Forecast Benchmark Enterprise Value
The IPAPS™ Benchmark Enterprise Value Methodology v1.1 follows a structured six-stage process. Each stage builds on the previous, transforming raw financial data into an evidence-based enterprise value benchmark.
Financial Analysis
$400,000Normalised EBITDA, working capital adjustments, balance sheet review and maintainable earnings calculation.
IPAPS™ Assessment
71/100Seven value drivers assessed: IP strength, revenue quality, dependency, transferability, health, brand equity and commercialisation.
Risk Adjustments
0.88xRisk discount applied based on founder dependency, transferability gaps and commercial risk factors.
Enterprise Value
$1,400,000Base EV = Maintainable Earnings × Industry Multiple, adjusted for risk and strategic asset premium.
Confidence Review
HIGHEvidence-based confidence rating across financial, operational, IP, commercial and forecast dimensions.
Forecast Benchmark Enterprise Value™
$1,355,200Final benchmark with Low, Most Likely and High range, determined under the IPAPS™ Benchmark Enterprise Value Methodology™.
Dr M Insight™
“The IPAPS methodology was developed from doctoral research into business, intellectual property and goodwill valuation. It does not simply apply a multiple to earnings. It assesses the structural factors that determine whether a buyer would actually pay that multiple.”
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Key Takeaways
Six sequential stages transform financial data into an evidence-based benchmark.
Risk adjustments reflect founder dependency, transferability and commercial risk.
The strategic asset premium recognises hidden value not on the balance sheet.
Confidence is assessed across five evidence dimensions, not assigned subjectively.
Dr M's Strategic Value Roadmap™
Prioritised actions to protect and grow your enterprise value
The recommendations below are provided as objective professional guidance. Each recommendation is categorised by timeframe and includes an estimated enterprise value impact based on typical outcomes observed across similar businesses.
Immediate Priorities (0–90 days)
30-60 days · Est. impact: $115,000$50,000
30 days
Register core trademarks with IP Australia
Brand is a key strategic asset currently unprotected. Registration establishes legal ownership and prevents competitor encroachment.
$30,000
30 days
Implement contractor IP assignment agreements
Contractor-produced IP is only partially assigned, creating ownership risk that reduces transferability.
$15,000
30 days
Establish confidentiality and NDA protocols
Trade secret procedures are absent. Formal protocols protect proprietary methodologies from disclosure.
$20,000
60 days
Document top 5 operating procedures
Partial documentation reduces transferability and increases founder dependency.
Medium-Term Initiatives (3–12 months)
6 months · Est. impact: $235,000$80,000
6 months
Delegate sales relationships to senior team member
Owner manages sales directly, which is the single largest value leakage point. Delegation reduces founder dependency.
$76,000
6 months
Increase recurring revenue to 50%+
42% recurring revenue is below the 50% best-practice threshold. Higher recurring revenue improves revenue quality and valuation multiple.
$44,000
6 months
Complete operations manual
Full documentation enables transferability and reduces operational risk for a new owner.
$35,000
6 months
Formalise all client contracts with assignment clauses
Contracts are moderately transferable. Assignment clauses ensure contracts survive ownership change.
Long-Term Value Strategy (within 12 months)
within 12 months · Est. impact: $490,000$120,000
12–18 months
Appoint General Manager
A GM reduces founder dependency to low levels and enables the founder to focus on strategic growth.
$200,000
24 months
Develop and document a succession plan
No succession plan exists. A documented plan materially reduces founder exit risk and increases transferability.
$60,000
18 months
Build second-tier management depth
Management team is reasonably strong but lacks depth. Additional capability reduces key-person risk.
$110,000
24–36 months
Package methodology into licensable product
Proprietary methodologies have high commercialisation potential. Packaging creates a scalable revenue stream.
Cumulative Impact Reconciliation
Important: Recommendation-level impacts are indicative and are not necessarily additive. Multiple recommendations may influence the same value driver, and the Approved Cumulative EV Impact reflects overlap, duplication and confidence adjustments. The standalone totals above must not be summed without reference to the reconciliation below.
These estimates are based on typical outcomes for professional services firms of similar size and structure. Actual results will depend on execution quality, market conditions and the specific circumstances of the business.
Strategic Decision Support
How this assessment supports your strategic business decisions
The forecast benchmark enterprise value assessment in this report may assist business owners considering a range of strategic decisions. The valuation provides an evidence-based starting point for conversations with professional advisers.
Business Sale
Establish a defensible value baseline for sale negotiations and vendor due diligence.
Succession Planning
Provide the valuation foundation for ownership transition and management buy-out discussions.
Estate Planning
Document business value for estate administration and intergenerational wealth transfer.
Capital Raising
Support equity or debt raising discussions with an evidence-based enterprise value assessment.
Family Wealth Transfer
Establish a benchmark for family office planning and trust structure considerations.
Licensing
Identify and value licensable IP assets for monetisation through licensing arrangements.
Franchising
Assess systemisation readiness and IP portability for franchise model development.
Commercialisation
Evaluate commercialisation pathways for proprietary methodologies and strategic assets.
Retirement Planning
Inform retirement timing decisions with a clear picture of business value and improvement potential.
Business Restructuring
Provide a pre-restructure value benchmark against which post-restructure value can be measured.
Disclaimer: This report does not constitute taxation, legal or financial advice. Professional advisers should be consulted before implementing any strategy. The valuation provides business value information only; it does not recommend any specific course of action.
Using This Report With Your Advisers
How to share and apply your benchmark valuation in professional discussions
This report is intended to provide a structured business-value benchmark. It should be read together with advice relevant to your specific circumstances. ThinkIP does not determine the taxation, accounting or legal treatment of the valuation.
Advisers Who May Find This Report Useful
Accountant
Tax Adviser
Solicitor
Financial Planner
Estate Planning Adviser
Business Broker
Corporate Adviser
Lender
How Each Adviser May Use This Report
Accountant
Reference for business-value discussions, ownership restructuring and general tax preparedness planning.
Tax Adviser
Starting point for CGT small business concession, succession timing and entity restructuring discussions.
Solicitor
Reference for estate planning, shareholder agreements, buy-sell documentation and business transfer contracts.
Financial Planner
Input for retirement planning, superannuation strategy and insurance coverage discussions.
Estate Planning Adviser
Evidence base for testamentary planning, trust distribution and succession roadmap discussions.
Business Broker
Indicative value reference for sale readiness, not a substitute for a transaction-specific valuation.
Corporate Adviser
Reference for merger, acquisition and capital-raising discussions.
Lender
Indicative asset value reference for secured lending discussions, subject to lender valuation requirements.
Checklist for Using This Report
Provide adviser with the complete PDF
Retain source financial records
Retain the completed questionnaire
Record subsequent ownership changes
Document material capital contributions
Record restructures and asset transfers
Obtain updated advice following significant changes
Consider an updated valuation after a material event
Maintaining Your Forecast Value Record
A forecast is not permanent: when to update your benchmark
A business valuation reflects a moment in time. As the business evolves, the forecast benchmark estimated in this report will become less current. The following events should trigger a conversation about obtaining an updated valuation.
Annually
After a restructure
After a significant acquisition
After a new investor enters
After major debt or capital changes
Before a sale or transfer
Following a material change in earnings
Following major legislative or taxation changes
Benchmark Comparison Framework
| Metric | 30 June 2027 | Next Review |
|---|---|---|
| Revenue | $1,610,000 | Future |
| Maintainable EBITDA | $400,000 | Future |
| Benchmark EV | $1,355,200 | Future |
| Master Score | 71/100 | Future |
| Value Leakage | Not separately quantified | Future |
| Strategic Asset Value | Not separately quantified | Future |
Recommended next review: 30 June 2028 or following a material event. Retain this report alongside your source financial records so future valuations can be compared against a clear, documented starting point.
ThinkIP | IPAPS Benchmark Methodology
Forecast Business Value Benchmark
Forecast Benchmark Enterprise Value
$1,355,200
As at 30 June 2027
| Business Name | Coastal Systems Advisory Pty Ltd |
| ABN / ACN | 42 138 762 591 |
| Forecast Benchmark Enterprise Value | $1,355,200 |
| Low Value | $1,151,920 |
| Most Likely Value | $1,355,200 |
| High Value | $1,558,480 |
| Valuation Date | 30 June 2027 |
| Issue Date | 7 July 2026 |
| Confidence Rating | HIGH |
| Methodology Version | IPAPS Benchmark Enterprise Value Methodology v1.1 |
| Assessment ID | 2027-BV-CSA-001 |
| Certificate ID | HVB-2027-CSA-001 |
This certificate records the Forecast Benchmark Enterprise Value estimated for the business as at the stated forecast valuation date using the IPAPS Benchmark Enterprise Value Methodology.
This is not a certificate of taxation compliance, an ATO determination, a certified independent valuation or a guarantee of value.
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Certified Business Valuer
Member, Australian Valuers Institute
Founder, ThinkIP™
Creator of IPAPS™
Your Strategic Pathway
What Happens Next?
Understand Your Current Value
COMPLETEDYour benchmark enterprise value is now established.
Protect Hidden Assets
Register trademarks, formalise IP assignments, document systems.
Increase Enterprise Value
Execute the Strategic Value Roadmap to close value gaps.
Prepare for Future Tax Changes
Retain dated records and consult your adviser on timing.
Exit on Your Terms
Achieve your full potential value with documented succession.
Book Strategy Session with Dr M
A 45-minute consultation to review your report and discuss next steps.
Complimentary with this report
Request Professional IPAPS Valuation
A formal, certified valuation for transaction readiness and strategic planning.
From $2,995 + GST
Business Value Improvement Program
A structured 90-day program to implement the Strategic Value Roadmap.
Customised engagement
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Certified Business Valuer | Member, Australian Valuers Institute
Founder, ThinkIP | Creator of IPAPS
Part D
Appendices
Methodology, evidence, definitions, scope and disclaimer
Methodology™
IPAPS™ Benchmark Enterprise Value Methodology™ v1.1
IPAPS™ Benchmark Enterprise Value Methodology™ v1.1
Prepared under the direction of Dr Maurice Roussety, PhD, MBA, MLED, CBV, Certified Business Valuer and member of the Australian Valuers Institute.
Certification attaches to Dr M's professional credential, not automatically to the methodology.
The valuation follows a six-step process combining traditional earnings-based valuation with strategic asset and risk assessment. Each step below shows the actual values from your assessment.
Maintainable EBITDA
EBITDA + normalisations
$400,000
Industry Multiple
Professional Services benchmark
3.5x
Base Enterprise Value
EBITDA × Multiple
$1,400,000
Strategic Asset Premium
From Strategic Asset Score
+10%
Risk Discount
Founder + IP + Transferability
−12%
Forecast Benchmark Enterprise Value™
Base × (1+Premium) × Risk
$1,355,200
Strategic Asset Score
76
+10% band
Total Risk Discount
12%
Capped at 35%
Risk Factor
0.88
1 − Discount
Methodology Notes
The strategic asset premium is derived from a direct lookup table mapping the Strategic Asset Score (0–100) to premium bands. The risk discount combines three independent components: founder dependency, IP protection and transferability, each mapped via lookup tables, with the total capped at 35%. All lookup tables, formulas and constants are auditable and version-controlled under the IPAPS™ Methodology Control Centre.
Business Value Evidence Record
Information relied upon in preparing this benchmark valuation
Evidence Confidence Score
84/100
Classification
High
Critical Coverage
88%
Important Coverage
81%
The following register documents the information relied upon in preparing this report. Each category records whether the information was received, partially received or not received, along with the evidence date, confidence assessment and weighting.
| Evidence Category | Importance | Wt | Status | Confidence | Notes |
|---|---|---|---|---|---|
| Financial Statements | Critical | 15% | Received | Supported by management information | 3 years P&L and balance sheet provided |
| Management Accounts | Critical | 12% | Received | Supported by management information | Monthly management accounts to latest quarter |
| Tax Returns | Critical | 10% | Partially Received | Management representation only | FY26 tax return not yet filed |
| Revenue Records | Critical | 10% | Received | Supported by management information | Revenue by service line and client |
| Payroll Information | Important | 8% | Received | Supported by management information | 9 employees confirmed |
| Owner Remuneration | Important | 8% | Received | Verified from supplied record | Salary, drawings and superannuation |
| Customer Concentration | Important | 8% | Received | Supported by management information | No client exceeds 18% |
| Contracts | Important | 7% | Partially Received | Management representation only | Key client contracts reviewed; assignment clauses partial |
| Intellectual Property Records | Supporting | 5% | Not Received | Not supplied | No registered trademarks; IP register not provided |
| Business Systems | Supporting | 5% | Partially Received | Management representation only | Operating procedures partially documented |
| Management Representations | Supporting | 4% | Received | Management representation only | Completed questionnaire and clarifications |
| Questionnaire Responses | Supporting | 4% | Received | Management representation only | Full 17-section questionnaire completed |
| Industry Benchmark Data | Supporting | 4% | Received | Verified from supplied record | Industry multiples from transaction databases |
Confidence Status Definitions
- Verified from supplied record: Information confirmed against a supplied source document.
- Supported by management information: Information consistent with management accounts but not independently audited.
- Management representation only: Information provided by management without supporting documentation.
- Not supplied: Information was not provided and has not been assessed.
Definitions™
Glossary of business valuation and IPAPS™ terminology
Maintainable EBITDA
Earnings Before Interest, Tax, Depreciation and Amortisation, adjusted for owner-related and one-off items to reflect the true ongoing earning capacity of the business.
Industry Multiple
The multiplier applied to Maintainable EBITDA to derive Base Enterprise Value, based on observed market transactions for similar businesses in the same industry.
Strategic Asset Premium™
An upward adjustment to Base Enterprise Value reflecting the strength of non-financial strategic assets such as brand, systems, IP, and customer relationships.
Risk Discount™
A downward adjustment reflecting founder dependency risk, IP protection risk, and transferability risk. Capped at 35% total.
Forecast Benchmark Enterprise Value™
The central valuation output: Base EV × (1 + Strategic Premium) × Risk Factor. Represents the most likely enterprise value under the IPAPS™ methodology.
IPAPS™ Master Score
A 0–100 weighted composite of seven value driver scores. Higher scores indicate stronger overall business value and lower risk.
Value Leakage™
The estimated dollar value being lost due to weaknesses in identified value drivers. Represents the opportunity for value recovery through targeted action.
Estimated Value Gap™
The difference between the High and Low valuation scenarios, representing the range of reasonable enterprise value outcomes.
Base Enterprise Value™
Maintainable EBITDA × Industry Multiple. The starting point before strategic and risk adjustments.
Risk Factor™
1 − Total Risk Discount. Applied multiplicatively to the premium-adjusted enterprise value.
Strategic Assets™
Non-financial assets including brand, systems, IP, customer relationships and know-how that contribute to business value beyond tangible assets.
Transferability™
The degree to which a business can operate successfully under new ownership without the original founder.
Commercialisation Potential™
The assessed opportunity to monetise strategic assets through licensing, franchising, digital products, or strategic partnerships.
Hidden Assets™
Strategic assets not recognised on the balance sheet but contributing materially to enterprise value.
Value Driver™
One of seven assessed dimensions that collectively determine business value under the IPAPS™ methodology.
Confidence Rating™
An assessment of data completeness and reliability: HIGH, MEDIUM, or LOW.
Terms marked with ™ are proprietary to the IPAPS™ Benchmark Enterprise Value Methodology™ and are used throughout this report. Standard valuation terminology follows accepted Australian business valuation practice.
Scope of Engagement™
Defining the purpose, parameters and limitations of this assessment
Purpose
To provide a professional business value assessment for Australian business owners considering capital gains tax timing, succession planning, retirement objectives or business sale. The assessment uses the IPAPS™ Benchmark Enterprise Value Methodology™ to establish a dated Forecast Benchmark Enterprise Value.
Effective Date
7 July 2026
Client
Coastal Systems Advisory Pty Ltd
Instructions Received
The client requested a Business Capital Gains Readiness Report™ using the IPAPS™ Benchmark Enterprise Value Methodology™, based on three years of financial data and a structured questionnaire covering seven value driver dimensions.
Methodology Used
IPAPS™ Benchmark Enterprise Value Methodology™ v1.1
Assumptions
- •Financial information provided by the client is accurate and complete.
- •The business will continue to operate as a going concern.
- •No material changes to the business structure or operations are anticipated.
- •Industry conditions remain consistent with current market observations.
Limitations
- •This report provides a professional Forecast Benchmark Enterprise Value prepared under the IPAPS™ Benchmark Enterprise Value Methodology™. It is not an independent expert valuation, ATO determination, taxation opinion, legal opinion or transaction-specific valuation.
- •The assessment is based on information supplied by management and the evidence available at the report issue date. Certain intellectual property records were not independently verified.
- •Strategic asset valuations are indicative and based on the IPAPS™ methodology, not formal IP valuations.
- •The assessment does not account for synergies that may be available to a specific acquirer.
Intended Users
Appropriate Uses
- ✓Strategic planning and business value benchmarking
- ✓Ownership and succession planning discussions
- ✓Accountant advisory discussions
- ✓Banking and finance discussions
- ✓General ATO-related business planning discussions
Inappropriate Uses
- ✕Taxation advice
- ✕Legal advice
- ✕Financial product advice
- ✕Expert witness evidence
- ✕Litigation valuation
- ✕Family Court valuation
- ✕Independent expert report for formal purposes
Disclaimer
Important limitations and conditions of this report
Nature of This Report
The Business Capital Gains Readiness Report is an indicative business value benchmark prepared from information supplied by the client. It is intended for strategic planning and preparedness purposes.
What This Report Does Not Constitute
It does not constitute taxation advice, legal advice, financial product advice, an ATO ruling, a statutory valuation, an independent expert report, expert witness evidence or a guarantee that the stated value will be accepted by any government agency, court, lender, purchaser or professional adviser.
Independent Advice Required
The client should obtain independent taxation, legal and accounting advice before relying upon this report for a transaction, restructure, transfer, taxation position or regulatory purpose.
Limitations
The valuation contained in this report is an indicative benchmark assessment, not a formal expert valuation. Strategic asset valuations are based on the IPAPS methodology and are not formal intellectual property valuations. The assessment does not account for synergies that may be available to a specific acquirer.
Reliance
This report is intended for use by the client and their professional advisers only. Third parties should not rely on this report for any purpose. The valuer accepts no liability to any third party who obtains access to this report.
Professional Judgement
The valuation reflects the professional judgement of the valuer based on the information available at the time of assessment. Different valuers may reach different conclusions based on the same information, and all valuations involve an element of subjective judgement.
Future Economic Conditions
This valuation assumes that future economic conditions will remain broadly consistent with current conditions. Changes in economic circumstances, industry dynamics, interest rates or regulatory environment may materially affect the assessed enterprise value.
Confidentiality
This report is confidential and is intended solely for the use of the named client and their professional advisers. It may not be reproduced, distributed or referenced in whole or in part without the express written consent of ThinkIP.
Methodology Version
This report has been prepared using IPAPS Benchmark Enterprise Value Methodology v1.1. The methodology, including all lookup tables, formulas and constants, is version-controlled and auditable. Future versions of the methodology may produce different valuations from the same input data.
Intellectual Property Ownership
The IPAPS Benchmark Enterprise Value Methodology, including all associated terminology, frameworks and processes, is the intellectual property of ThinkIP and Dr Maurice Roussety. This report does not transfer any rights to the methodology itself.
Limitation of Liability
To the maximum extent permitted by law, ThinkIP and Dr Maurice Roussety accept no liability for any loss, damage or cost arising from the use of or reliance on this report, except where such liability cannot be excluded by law. The client should seek independent professional advice before making any decision based on the contents of this report.
Important: What This Report Is Not
This report is intended for strategic planning, ownership planning, succession planning and business value benchmarking purposes. It is not:
- ✕Taxation advice
- ✕Legal advice
- ✕Financial product advice
- ✕Expert witness evidence
- ✕Litigation valuation
- ✕Family Court valuation
- ✕Independent expert report for formal purposes
Why Business Owners Trust Dr M™
Professional credentials and authority behind your benchmark
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Certified Business Valuer
Member, Australian Valuers Institute
Founder, ThinkIP™
Creator of IPAPS™
"Dr M combines formal valuation credentials, doctoral research and practical commercial experience. His work focuses not only on establishing what a business is worth, but on identifying what creates, protects and increases that value."
Certified Business Valuer
Certified Business Valuer (CBV) designation through the Australian Valuers Institute.
Doctoral Research
PhD in intellectual property and franchise goodwill valuation from Griffith University.
40+ Years of Commercial Experience
Senior leadership, advisory, licensing, franchising and business growth experience.
500+ Valuation and Advisory Engagements
Business valuation and commercial advisory experience across SMEs and growth businesses.
Creator of IPAPS™
Developer of the Intellectual Property Assets Pricing System™.
University Lecturer
Experience teaching business, strategy, entrepreneurship and commercialisation.
Areas of Expertise
Qualifications
- ▸Certified Business Valuer (CBV), Australian Valuers Institute
- ▸Doctor of Philosophy (PhD) : Intellectual Property and Franchise Goodwill Valuation, Griffith University
- ▸Master of Business Administration (MBA)
- ▸Master of Leadership in Economic Development (MLED)
- ▸40+ years of commercial experience
- ▸500+ valuation, strategic advisory and intellectual property engagements
- ▸Creator of IPAPS™ (Intellectual Property Assets Pricing System™)
- ▸University lecturer in business, strategy, entrepreneurship and commercialisation
Credential Accuracy
Dr Maurice Roussety is a Certified Business Valuer and member of the Australian Valuers Institute. The Australian Valuers Institute does not endorse or approve the IPAPS™ methodology. This report is not an ATO-approved, statutory or government-certified valuation, and the CBV credential does not guarantee acceptance by any particular adviser, court, lender or regulator.
About IPAPS™
How the IPAPS™ methodology extends traditional valuation
Traditional Valuation
- ✕Financial performance analysis
- ✕Industry multiple application
- ✕Historical earnings focus
- ✕Limited asset assessment
- ✕No IP or strategic asset evaluation
IPAPS™ Methodology
- ✓Financial performance + strategic asset analysis
- ✓Industry multiple + strategic premium
- ✓Historical + forward-looking earnings
- ✓Comprehensive IP and strategic asset assessment
- ✓Risk-adjusted via 7-dimension scorecard
- ✓Value leakage and hidden asset identification
The IPAPS™ Value Equation
Financial Performance
Strategic Assets
Risk Assessment
Enterprise Value
The IPAPS™ Benchmark Enterprise Value Methodology™ was developed by Dr Maurice Roussety to address a fundamental limitation of traditional business valuation: the failure to account for strategic assets, intellectual property and commercial risk in a systematic, auditable manner. While traditional valuations apply an industry multiple to maintainable earnings, the IPAPS™ methodology extends this foundation with a strategic asset premium (reflecting the strength of non-financial assets) and a risk discount (reflecting founder dependency, IP protection and transferability risks). The result is a more comprehensive and defensible assessment of enterprise value that captures the full spectrum of factors driving business worth.
Your Strategic Pathway Forward
The ThinkIP Roadmap
This report is not the end of your journey. It is the starting point. Here is where you go next.
Improve Value
Execute the Strategic Value Roadmap to close value gaps and protect hidden assets.
90-day action planCommercialise
Package and monetise your proprietary methodology through licensing, training or digital products.
Commercialisation assessmentNational Expansion
Assess interstate growth potential and identify target markets for replication.
Expansion readiness reviewSale Readiness
Prepare for a future business sale with documented systems, protected IP and reduced dependency.
Sale readiness checklistSuccession Planning
Develop a formal succession plan that reduces founder dependency and preserves enterprise value.
Succession strategy sessionValuation Updates
Refresh your benchmark annually or following any material event to track value over time.
Annual benchmark refreshBecome an IPAPS Client
Engage ThinkIP for ongoing advisory, certified valuation and strategic implementation support.
Schedule consultation with Dr MThe greatest value of this report is not simply knowing your number. It is knowing what to do next. Your enterprise value today is a benchmark. What it becomes tomorrow depends on the decisions you make starting now.
Dr Maurice Roussety, PhD, MBA, MLED, CBV
Certified Business Valuer | Member, Australian Valuers Institute
Founder, ThinkIP | Creator of IPAPS
Prepared for Coastal Systems Advisory Pty Ltd