SME valuations refer to the valuation of small and medium enterprises. Whilst there is no official description of what constitutes a small-medium enterprise, there is government legislation that suggests that any business employing more than 20 employees and less than 200 employees could be described as an SME.
SME valuations are critical to the engine room of Australian enterprise, It is reported that SMEs are Australia’s largest employer group and the wealth created and the employment involved in SMEs should not be underestimated. Valuations of an SME are often required by Australian banks as part of the business loan approval process.