Why You Need the Right Lawyer on Your Exit Planning Advisor Team!

Blog

Why You Need the Right Lawyer on Your Exit Planning Advisor Team!

Can your corporate lawyer assist with your exit planning efforts? Perhaps. Does your corporate lawyer have experience collaborating with other professional advisors and working with privately held business owners on the various issues involved in the exit planning process? I wanted to find out why business owners should have a lawyer on their exit planning advisor team, in particular to understand: a) how to select an appropriate lawyer; and b) what the lawyer’s contributions to the exit planning process will be. In order to do so I sat down with David Shlagbaum and Errol Tenenbaum at Robins Appleby & Taub […]

925 total views, no views today

Continue Reading

The Family Business Advisor – A Key Member of the Exit Planning Team

Will the next generation want to carry on the business after you are gone? If so, are they capable? How many family members are dependent on or involved in the family business? Will the business survive a transition to the second generation? How about the third? Is a third party sale to a financial or strategic buyer an option? If these questions have crossed your mind, you may benefit from having a discussion with a family business advisor experienced with best practices that can make a significant difference to both your business and family in the exit planning process. I […]

967 total views, no views today

Continue Reading

Is Your Distribution Company in Trouble? How to Add Value as a Distributor

If your business survives on the basis of being a distributor for one key supplier (i.e. selling another company’s product/service), it may be time to rethink your business model or, at the very least, rethink the way you view your business. When was the last time you used a travel agent, went to a CD store or rented a movie from the local blockbuster? Travel agencies have yielded to the rise of online travel booking companies. CD stores have succumbed to online music services such as iTunes. DVD rental stores have surrendered to the convenience of on-demand movie rentals. These […]

911 total views, no views today

Continue Reading

The Mile Wide Trap – A Value Killer

If your revenue starts to plateau after a period of rapid growth, you may have fallen into The Mile Wide Trap – not a good situation if you are looking to maximize the value of your business. To illustrate, consider a public relations (PR) firm started by an entrepreneur who originally spent ten years learning a variety of marketing disciplines (e.g. PR, advertising, direct marketing, social media, etc.) as an employee at a big advertising agency. Given her experience and connections, she quickly landed General Motors (GM) as a client and was asked to handle certain regional dealer events. Her […]

1,019 total views, no views today

Continue Reading

Exit Planning Doomed to Fail Without Effective Collaboration

Last week, I had the privilege of speaking at the CICBV 2013 Eastern Regional Conference on the issue of business valuation and exit planning in light of the unprecedented transfer of business wealth expected over the coming decade. [1] Our panel, moderated by Bill Vienneau, Partner at WBLI, Chartered Accountants in Halifax, consisted of Doug Bruce, VP Research at the Canadian Federation of Independent Business (CFIB), Trevor Allibon, Manager Subordinate Financing at the Business Development Bank of Canada (BDC) and myself. Doug discussed some of the recent CFIB survey results in the area of business succession. Trevor addressed some of […]

935 total views, no views today

Continue Reading

The Final Step to Reviewing a Business Valuation Report – Consult a CBV

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; Any redundant assets owned by the business; The income tax implications; and The overall reasonableness of the value conclusion. The final step involves consulting an independent Chartered Business Valuator (CBV). In the context of a legal dispute (e.g. commercial, shareholder or matrimonial dispute) this step […]

1,444 total views, no views today

Continue Reading

The Final Step to Reviewing a Business Valuation Report – Consult a CBV

You have now completed your review of a business valuation report by considering: 1. The type of valuation report; 2. The author’s credentials and qualifications; 3. Any scope limitations underlying the conclusions; 4. The valuation approach(es) adopted; 5. The reasonableness of the projected cash flows or historical normalization items; 6. The reasonableness of the discount rate, capitalization rate or valuation multiplier; 7. Any redundant assets owned by the business; 8. The income tax implications; and 9. The overall reasonableness of the value conclusion. The final step involves consulting an independent Chartered Business Valuator (CBV). In the context of a legal […]

928 total views, no views today

Continue Reading

Start Building Your Seller’s Pre-Sale Diligence Binder Today

I recently had the privilege of hearing Garth Stephanson speak at the May 2013 Estate Planning Council of Toronto dinner.  Garth’s story was fascinating and he provided extremely valuable advice for business owners when it comes to building a business for a successful transition.  His advice is especially critical given the implications for business owners of the unprecedented transfer of business wealth expected over the coming decade. After 32 years as CEO, Garth sold his manufacturing business in 2004 when sales had grown to approximately $15 million.  The planning, however, began 3 years earlier.  According to Garth: “There was no doubt that this […]

3,491 total views, no views today

Continue Reading

Step 9 to Reviewing a Business Valuation Report – Reasonableness Testing

Does the valuation report provide sufficient reasoning and rationale to support its findings?  This is a key question to ask when reviewing a business valuation report given that business valuations are somewhat subjective in nature. Step 9 to reviewing a business valuation report involves assessing the reasonableness of the value conclusions, including the implied intangible value, and/or identifying what reasonableness testing the valuator used to support his/her findings.  Here are 6 reasonableness tests to consider when reviewing a valuation report: 1.  Nature of intangible value The value of a business can be segregated into 2 components: net tangible asset value […]

5,086 total views, 2 views today

Continue Reading

Step 8 to Reviewing a Business Valuation Report – Income Taxes

Income tax considerations are vital to conducting a proper business valuation.  Step 8 to reviewing a business valuation report involves ensuring the value conclusion incorporates the relevant income tax considerations. The value of an operating business is dependent on its ability to generate discretionary after-tax cash flows.  In cases where business value is driven by the underlying asset values, such as real estate holding companies, important income tax considerations must also be taken into consideration. Some of the relevant income tax considerations applicable in the valuation of operating companies and real estate holding companies are discussed below: Operating Companies Under a cash […]

8,773 total views, 2 views today

Continue Reading
Page 5 of 13« First...34567...10...Last »