Determining the value of a homewares business to dissolve a partnership

Background/ Situation

Our client was a Brisbane-based homewares business owned in partnership by two individuals. The parties had decided to end the partnership and agreed that one partner would purchase the other’s equity. MACHUS Solutions was engaged to value the business and to assist with mechanics of the transaction.

Initial Findings

Initial research undertaken by MACHUS indicated that, in addition to the assets held by the partners, the balance sheet showed internal loans. These would therefore need to be reconciled and settled as part of the final separation.

MACHUS Solutions also undertook market research prior to the valuation that revealed the homewares industry was extremely competitive. A large portion of the homewares market included relatively cheap imports, however the upper end of the market offered significant opportunities.

Solutions, Strategies and Recommendations

This particular project was unique in that no strategic planning was required. The partners’ decision to separate had already been made. MACHUS was solely engaged to value the business and assist with the finalisation of the transaction.

Implementation and Results

The homewares business was valued as per our brief. In addition, numerous questions and issues regarding the transaction were attended to as requested by the client. This project ran smoothly as the partners were cooperative and constructive. Settlement was completed shortly after the valuation was submitted to our client.

MACHUS principal service is consulting. However, we find nearly every case requires “tidying of loose ends”. We happily resolve these as an additional service to our clients. From feedback we’ve received, this is something that is unique to MACHUS Solutions with other business consultants rarely stretching their services to the same extent.