Startup valuation readiness checklist

How do we actually receive this information?

Nothing on this site collects documents, and there is no upload field. Once you request a valuation at Request a valuation and we agree scope and fee, we send a private matter link for exchanging documents securely. Everything below is a preview of what that request will ask for, not something to attach here.

Why do purpose and the valuation date come first?

Purpose sets the basis of value before a single document is reviewed. An employee share scheme grant, a shareholder transfer, a capital raise, a tax or restructure event and a court purpose can each call for a different basis of value, and often a different unit of value too, the whole company, one class of shares, a parcel, or an option or right ^{1, 2}. The valuation date matters just as much: the ATO lists use of information from after the valuation date among its common valuation issues ². Tell us the purpose early, and whether the date is current or a past date: the date changes what evidence is relevant, and a retrospective date can affect scope and fee (see below). See How to value a startup for how purpose maps to basis of value and method.

What company and cap table information do we need?

Incorporation dates and group structure feed directly into two conditions of the ESS start-up concession: each company in the group must be incorporated less than 10 years before the end of the company's most recent income year before the grant, with no group company listed at that date ¹. Debt, cash and each convertible instrument's terms decide how enterprise value bridges to total equity value; the cap table and each class's terms then decide how that equity is allocated across classes once preference shares exist, a step that in our view often moves the ordinary share figure more than the choice of enterprise valuation method does. In our view, a valuation clause in the constitution or shareholders' agreement can displace the default basis of value for a transfer, so we read it before choosing a method. See Ordinary vs preference shares for how allocation across classes works.

What instrument and rights documents matter?

Each convertible instrument's terms, cap, discount, maturity, interest and trigger, are what let a valuer make the debt versus converted call in the equity bridge, so the documents matter, not just that the instrument exists. For an ESS grant relying on the start-up concession, the right's exercise price is compared against the market value of an ordinary share at the time it is provided ¹; outside the concession, for an unlisted right that must be exercised within 15 years, the employee can choose market value in its ordinary meaning or the value under the regulations, except where the taxing point is disposal, when the ordinary meaning applies ^{3, 4}. Because market value assumes an arm's length transaction ², in our view a related party or non arm's length round carries less weight as evidence than an arm's length round. See SAFEs and convertible notes and How ESS valuations work for how each is actually used.

What financial information and forecasts do we ask for?

Aggregated turnover for the most recent income year before the year of a proposed ESS grant feeds the start-up concession's turnover condition, which requires aggregated turnover not exceeding $50 million ¹. Whether the company raised more than $10 million (debt, equity or both) in the 12 months before the valuation time, and whether it has prepared or will prepare a financial report for the year, are two of the tests for whether the net tangible assets (NTA) method, Method Two of LI 2025/19, is open to the company; that method is also unavailable once the company is incorporated more than 7 years and is not a small business entity, and both LI 2025/19 methods remain subject to the ESS-interest and change of control conditions described below ⁵. In our view, revenue quality, recurring and contracted income against one off or trial income, weighs on how much confidence a scenario based forecast deserves.

Why does cash runway matter?

A longer runway generally lowers the risk of a forced or down round, and surplus cash itself is also an input to the enterprise to equity bridge, in our view. Burn without matching milestone progress shortens runway and points to future dilution.

What IP and operational records should we gather?

Both LI 2025/19 methods are approved only where the company provides an ESS interest at the valuation time and the directors reasonably anticipate there will not be a change of control within 6 months after that time ⁵. LI 2025/19 applies only to the start-up concession market value test in section 83A-33(5) of the Income Tax Assessment Act 1997, and binds the Commissioner only for that test where its conditions are met ^{5, 6}. Uplifts and discounts for key person risk are among the matters Method One requires the CFO or a suitable valuer to take into account on a reasonable basis ⁵. Separately, a Method One valuation must be in writing, with its methodology and value endorsed by written resolution of the directors ^{5, 6}. Board minutes help evidence the directors' position on change of control. Unassigned IP is a risk a buyer or investor would typically price in, or require fixed, before completing a transaction, in our view.

How does a recent funding round fit in?

A completed or proposed round is useful evidence. The ATO has no published rule that a round price is the market value of an ordinary share ^{7, 2, 8}, though it recognises a valuation prepared for capital raising as a possible alternative method under the safe harbour ⁷. Because market value assumes an arm's length transaction ², in our view a related party or non arm's length round carries less weight as evidence than an arm's length round. See A recent raise as valuation evidence for how a round is actually weighed, and Capital raise valuations for the service itself.

How do I check what we already have ready?

Not every item applies in full to every engagement. Each Simple or Standard start-up valuation is a valuation engagement, as described in the APES 225 guidelines we follow ⁹. How much of this list a piece of work needs follows the company's structure and purpose: a Simple start-up valuation (one share class, no SAFEs, convertible notes or ESS) draws on less of it than a Standard start-up valuation (ESS work, SAFEs or notes, several share classes, option-pool modelling); see Pricing for both tiers. We confirm scope with you before work starts.

The Readiness Checklist tool on this page asks a short yes or no question for each area, and returns two lists: what you already have ready, and the gaps that may affect timing or scope, with a plain explanation of why each gap matters. It never asks for or accepts a file, and it never produces a dollar value, a multiple, a discount, or a range or typical value. Use it before you request a valuation, then send us your answers, not documents, at Request a valuation.

What if we are missing several items?

FAQs