• 905-305-8775
  • 675 Cochrane Drive West Tower, Suite 220 Markham, ON, L3R 0B8

Home

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, â€...

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 ...

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...

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 ...

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 estat...

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 ...

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 pric...

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 proper...

An independent professional business valuation is a critical element of pre-sale planning for business owners. Various studies indicate that between 60% and 75% of business owners will exit their businesses within the coming decade. [1] Over $10 trillion in private wealth will change hands in North America over this time frame, the largest transfer of private wealth in history. [2] There certainly is capital out there currently sidelined and looking for good investment opportunities. If you ha...

The ultimate test to determine if you own a valuable “business” or just have a “job” can be found in a simple question: would someone want to buy your company? Would your customers continue to do business with the company (and its new owners) after you are gone? In other words, will the revenues and discretionary cash flows generated by the business continue after your departure? This is a major issue for many smaller personal services businesses that have few, if any, employees and...