Top Benefits of a Professional Business Valuation

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Top Benefits of a Professional Business Valuation

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As a seasoned business owner, it is common to enjoy an intuitive understanding of the importance of knowing the value of your business. Essentially this constitutes knowing what and how much it is worth based on current market conditions and its industry position, set against the amount of work you have put into fostering its growth over the years and the available resources for continuing your work. However, many owners these days miss out on the fact that the current value of their business represents a significant portion of their personal overall wealth. To stay on track both for the […]

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Business Valuation Services in the Digital Age

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Your business is your life’s work and greatest investment; what and how much it’s worth cannot be easily quantified, but as you move towards expansion, or set your sights on other, more lucrative ventures, knowing how much your business is worth through business valuation services is essential in determining the best way to profit from your venture and grow your investment. The real answer to this question is, it depends. Determining the worth of your business is based on a number of circumstances, such as changes in market conditions, the need for business valuation, the rise of technology, doing business […]

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Breaking Down Barriers with Business Valuation Services

Are you passing your business on to the next generation? Will you be selling to management or an employee group over time? Would you like to maximize your net proceeds on a sale to an independent third party buyer? Whether you plan on selling your business to an internal party over time or to an external third party for maximum proceeds, your success depends on how much effort you put into your planning and preparation. Getting started is often the hardest part. We learned from Newton that, “An object at rest stays at rest and an object in motion stays […]

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Will Your Goals Be Thwarted by These Excuses?

All business owners exit their business eventually. Planning is critical if you want to ensure a successful transfer of your business – whether that transfer be internal (i.e. to another shareholder, a management group or the next generation) or external (i.e. to an independent third party). According to a recent CFIB study, less than 10% of business owners have a formal written plan, 40% have an informal plan and over 50% have no plan whatsoever. [1] Why have so many business owners avoided planning their exit? Does this include you and, if so, what is holding you back? Here are […]

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6 Ways to Profit From Your Vacation

Summer may be the perfect time to increase the value of your company. The most valuable businesses are the ones that can survive without their owner. A buyer will pay a premium for a company that can operate effectively without the owner’s presence and likely require a steep discount for a business that is dependent on its owner. This summer, consider taking an extended break from your business to see how things will run when you are not around. It is likely that some things will go wrong, but use those errors as feedback for making your business operate more […]

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Estate Executors – How to Increase Your Protection and Minimize Your Risk

The executor of an estate with business interests should obtain an independent professional business valuation as support for the values used in the estate administration tax (“EAT”) filing, particularly in light of recent changes to EAT legislation and the potential for personal executor liability. At the time of probating the will, EAT (previously known as “probate fees”) of 0.5% must be paid on the first $50,000 of estate assets and 1.5% on the value of the remaining assets. [1] The estate representative (i.e. executor or trustee) has many responsibilities, including: Filing an affidavit as to the estimated value of the […]

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Business Valuations to Support Life Insurance Coverage

We were recently contacted by the Inspection Department of an independent service provider to the Canadian life and health insurance industry with respect to one of our clients. They were gathering information to assist in the underwriting process and wanted independent evidence supporting the client’s claim as to the value of the business as part of their inspection process. Our client asked us to provide a copy of the independent business valuation we had prepared for purposes of their estate planning and life insurance. We have been providing independent business valuations to help business owners determine an appropriate amount of […]

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Supporting Valuations in Tax and Estate Planning

30% to 40% of business owners are planning to transfer their business internally to another shareholder, management, employees or family member. [1] One option for those planning to transfer the business to the next generation over time is through an estate freeze. In an estate freeze the business owner’s common shares are exchanged for preferred shares of equal value to the common shares. New common shares are then issued by the company to the next generation family members. This allows the business owner to “freeze” his/her unrealized gain in the corporation on a tax-deferred basis, with any future growth in […]

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Business Valuation Helps Facilitate an Internal Transfer of a Business

According to recent studies on the business succession market in Canada, between approximately 30% and 40% of business owners surveyed are expecting to transfer their business internally to other shareholders, management, employees or a family member. If you are planning to one day sell your business to an internal party, an independent business valuation can be very beneficial for managing value expectations and ultimately facilitating the transfer of the business at a fair and reasonable price. It is extremely important for all parties involved in an internal transfer to agree on the current fair market value of the business, to […]

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6 Ways a Business Valuation Prepares You for an External Sale

According to studies on business succession in Canada, more than one third of those surveyed are expecting to sell their business externally to a third party. [1] “We should remember that good fortune often happens when opportunity meets with preparation.” ― Thomas A. Edison Business owners looking to sell their business to an external third party should take note. There is tremendous opportunity to sell for a significant premium because many business owners are not properly preparing. The preparation for this begins with a business valuation and solid value enhancement plan. The good fortune comes in the form of a […]

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