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This past week I presented to a group of business owners on the importance of having a professional business valuation.  In addition to many situations where an independent business valuation is required (e.g. estate freeze, shareholder or matrimonial dispute litigation, purchase or sale of business, etc.), a business valuation can also be a very powerful planning tool.

You have now completed your review of a business valuation report by considering:

  • The type of valuation report;
  • The author’s credentials and qualifications;
  • Any scope limitations underlying the conclusions;
  • The valuation approach(es) adopted;
  • The reasonableness of the projected cash flows or historical normalization items;
  • The reasonableness of the discount rate, capitalization rate or valuation multiplier;
  • ...

Business ownership can be complicated, particularly when there are multiple shareholders. The odds of disagreement and conflict among shareholders over various issues can be very high. When shareholder relationships break down there must be a mechanism in place for dealing with the dispute or for enabling one or more of the shareholders to exit the business in a pre-determined manner. A shareholder buyout can quickly turn into a costly dispute if the value of the business has never been dis...

health-in-business-avoid-shareholder-disputes-with-a-company-valuation-report

As if business ownership is not complicated enough, adding multiple shareholders to the mix only complicates matters even more, as differing opinions, priorities, and visions can be the root of disagreement and conflict among shareholders. When relationships among these key persons break down, a company must have mechanisms in place for dealing with the dispute, or for , such as through an exit planning advisory service that ...

how-business-valuations-support-litigation-inform-court-decisions

Often, in legal proceedings involving business disputes in Toronto and across Ontario, key issues arise, such as financial loss or the value of a business - figures that can differ and be inherently arrived at differently, depending on the that prepared the report. As a result, court proceedings may call two financial experts to present different expert opinions, testifying on the value of the business in question, or the fi...

3-methods-for-deriving-lost-profits-resulting-from-business-disputes

Disputes in businesses often result in legal proceedings in which a claim is made. These claims may vary depending on the nature of the complaint or the breach that necessitates them, but at their core are economic damage quantifications or lost profits that resulted from the dispute. In providing to business owners and lawyers, business valuators work to provide the party they are c...