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A sobering statistic for many is that over 40% of marriages will end in divorce before the 50th year of marriage. [1] This does not exclude business owners and a matrimonial separation can result in significant professional fees for business owners, especially when the value of the business is a key area of dispute. An independent business valuation can help to minimize legal and expert fees for business owners going through a matrimonial separation. The division of property is a major issue...

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...

As a business owner, the value of your business likely represents a significant portion of your wealth. According to a publication by Mercer Capital: "About 75% of all private equity is owned by households for whom it constitutes at least half of their total net worth. Households with entrepreneurial equity invest on average more than 70% of their private holdings in a single private company in which they have an active management interest." [1] Enhancing and managing this privately...

Are you trying to build a business to one day sell for top dollar? If so, it is critical for you to manage your value expectations and to be aware of how your business will be perceived and valued by potential purchasers. Many business owners have unreasonable expectations regarding the value of their business. According to RBC Business Succession Planning: Your Essential Roadmap, "It is important to get a professional business valuation, since owners may grossly overestimate or underestimat...

Facebook’s recent acquisition of WhatsApp for $19 billion represented the largest-ever acquisition of an Internet messaging service company in history. WhatsApp allows users to avoid text-messaging charges by moving texts across the Internet instead of the mobile phone carrier networks. This can save people who travel, or live in emerging markets, hundreds of dollars a year. As a result, WhatsApp is adding about one million new users per day. At the time of the acquisition in February 20...

Many business owners do not know the current value of their business, which can represent a significant portion of their overall wealth. Worse yet, many business owners will grossly overestimate or underestimate the value of their business. A Chartered Business Valuator (CBV) or Accredited Senior Appraiser (ASA) can provide you with this extremely valuable information. Some business owners are reluctant to undertake this exercise because of the cost. They do not appreciate that the benefits...

VSP to Make Guest Appearance on Exit Coach Radio At VSP we are committed to helping business owners prepare for a smooth exit from their business. As a certified exit planning advisor with professional business valuation designations in Canada and the United States, I believe that having realistic expectations with respect to how a potential purchaser would value your business and knowing how to enhance the value of your business before exit is critical to ensuring a smooth transition to new ow...

Proper preparation will greatly increase your chances of maximizing the net sale proceeds when you sell. Although preparation takes time, effort and attention, the benefits of planning far outweigh the costs. "Built to Sell" author, John Warrillow, discusses two such benefits in his recent blog entries (). A takeaway from reading John’s recent articles is that proper preparation will greatly improve your chances of: i) selling for a significant premium; and ii) avoiding buyer trickery. Le...

The beginning of a new year is a time of rebirth and resolutions. It is a time to reflect on last year’s achievements and to set goals for the coming year. Some people set personal goals like losing weight or quitting a nasty habit, and most business owners set business goals that focus on hitting certain revenue or profit targets. If your goal is to own a more valuable business in 2014, you should select one or more of the following New Year’s resolutions: 1.Take a two-week va...

As we approach the beginning of a new year I reflect upon our firm’s achievements and challenges over the past year. Celebrating accomplishments and monitoring progress towards goals are vital to your continued focus, commitment and motivation. How did your business do this year compared to your original goals? Are you on track to exit your business at a time of your choosing? Has your business increased in value over the past year? Would you like to double the value of your business within a...