Throughout our recent history, Australia has seen it’s fair share of economic shocks.
The early 90’s saw a recession that impacted most of the western world and Australia was hit hard. Share prices fell 40% domestically while the global share price average was around 25%.
Between 2007 and 2009 USA’s housing market crash had widespread effects, and was a major catalyst of the Global Financial Crisis (GFC). Australia was lucky and while we saw impacts, we came out the other side more or less unscathed compared to other nations.
This time it is different. Late 2019 saw the rise of something that until now has not been experienced before. It was not economic conditions being changed by people’s actions – It was the rise of a global pandemic. COVID-19 (a strain of the Cornonavirus).
Already the impact in Australia has been significant. As of writing this article (1 April 2020) there are 4,707 confirmed cases and 20 deaths within Australia – A relatively minor amount but it’s impact is far from small. We have seen the impact in China, Italy, Spain, Germany, Iran and France, all of whom have over 40,000 confirmed cases. Globaly there is over 754,000 confirmed cases and 36,500 deaths.
In Australia we are lucky. Its true impact has not been seen yet and may not be seen to their fullest extent for years to come, but we’ve reacted and we’ve reacted swiftly. Lockdowns are in place across the nation, businesses have closed, and people have lost jobs. The Government is doing everything it can to keep the economy limping along until we are in a position to return to ‘normal’ (whatever that is now). Really we are not lucky at all but no one is and so far we are doing ok.
In times like these it is more important than ever for the Business Valuation Landscape to change.
A Business Valuation needs to account for what is happing in Australia right now. Mosts businesses cannot be valued as they were and considerations need to be made. There is no easy answer. In this time of massive distruption and uncertainty you need to be sure that your business is valued by those with the experience and knowledge to adapt.
With over 35 years of experience between them, both Russell Munday and Victoria Wheeler have the knowledge needed to adapt and tailor their services to accomodate what is occuring in Australia today.
Family Law matters and Shareholder Disputes are tough at the best of times, and now they are even tougher so if you need assistance with your matter or you need a second opinion for a valuation that you have already had done, then feel free to contact our office on (03) 9816 9122 or firstname.lastname@example.org