Inside PKF’s corporate advisory approach: Helping businesses win in the market

Stefan from PKF shares insights on building market-relevant business value and strategic growth. He joins Ferzad Bharucha on the Play to Win Advisory podcast to discuss corporate advisory in action.

When Stefan Galbo first joined PKF more than a decade ago, he saw an opportunity to build something from the ground up. His goal was to lead a corporate finance team that didn’t just crunch numbers, but genuinely guided business owners through the entire M&A lifecycle. He acknowledges that today, as a corporate finance partner in Melbourne, it’s that same philosophy that drives him.

“Success in business isn’t about chasing growth for growth’s sake; it’s about understanding what you’re building, why you’re building it, and who you’re building it for.”

Our role as a full-service tax, audit and business advisory firm is to equip business owners with the strategy, structure and insight they need to make confident, value-accretive decisions.

Corporate advisory continues to navigate the valuation gap

One of the biggest challenges our corporate advisory team are seeing in the market right now is the valuation gap, that space between what an owner thinks their business is worth and what the market is actually willing to pay. Stefan admits that it’s not always a comfortable conversation, but it’s a necessary one.

Understanding valuation is about more than just the number, it’s about the why.

• Why does the market price a business in a certain way?
• What factors drive that perception of value?
• And what can a business do to influence those factors before approaching investors or buyers?

“In many cases, the issue isn’t that a business isn’t performing, it’s that the foundations for scale or exit simply aren’t in place.”

The right corporate structure, for instance, can make or break a deal. Without it, capital raising, acquisitions, or an eventual sale can become unnecessarily complex or inefficient.

What the market values (and what it doesn’t)

We’re often asked what really drives value beyond the financials. The truth is that non-financial factors can have just as much impact. Reliable distribution channels, governance, and succession planning all shape investor confidence. Conversely, overreliance on a single founder or a lack of scalability can drag down valuation, no matter how impressive the revenue looks.

As a corporate advisory firm, PKF are constantly reminding clients that earnings matter more than revenue. We see plenty of businesses growing top-line sales while margins shrink due to rising costs and labour pressures. Revenue may be growing, but earnings - and therefore enterprise value, aren’t keeping up. Growth that doesn’t improve profitability isn’t value-accretive growth.

The right team will drive growth

No founder or CEO should have to navigate these challenges alone. But it’s not just about having advisers, it’s about having the right advisers. There are two kinds:

• Those inside the company, working hands-on to improve operations, sales, and processes; and
• Those outside, like us, focused on structuring, capital, and strategy to position the business for growth or exit.

It’s critical for founders to understand what type of advice they need and why. The best corporate advisers know when they’re not the right fit for a specific challenge, and they’re confident enough to refer the client to someone who is. That’s how you build trust and get results.

Three principles for founders

Distilling his experience for founders and CEOs navigating growth or transition, Stefan highlights these three key principles:

1. Define your objective. Whether it’s an exit, a growth phase, or building a generational asset, be clear on what you’re trying to achieve before you act.
2. Invest in governance and compliance. Having the right structure, legal and tax frameworks in place gives you flexibility and protects your value. Even when your objective needs to shift over time, the foundation of what you’ve built is what carries value.
3. Choose advisers who act in your best interest. A good adviser doesn’t just service a client, they align with your goals and act as an extension of your team.

The evolving role of advisory boards

“In recent years, we’ve also seen the rise of advisory boards, which I believe can be incredibly valuable when done with purpose. The key is not to have a board for its own sake, but to build one that brings together diverse skills to achieve specific outcomes.”

Unlike formal governance boards that focus on compliance and oversight, advisory boards are more agile. They can come together to tackle a particular project or growth initiative, then reset and evolve as the business does. When structured well, they can be one of the most effective tools for accelerating progress.

Playing to win

Ultimately, business success isn’t about chasing every opportunity, it’s about focusing on the right ones.

“The most rewarding moments for me come when clients take the advice, make the tough decisions, and see the results in both earnings and enterprise value.”

Growth should always serve a purpose. Whether that purpose is an exit, expansion, or legacy: play to win, but do it strategically, sustainably, and with the right team around you.