A business appraisal could be one of your best allies in avoiding pricey legal disputes! Businesses all over Toronto have recently started using business valuation to their advantage.
The worth of the business is frequently a point of disagreement in legal problems, whether they arise from a marriage relationship, a partnership, or a shareholder. The court may ask Chartered Business Valuators, or CBVs, to testify as experts regarding the value of a business. Firm valuation studies assist in providing an unbiased and completely objective insight on the business and share value, particularly in situations where there may be a potential shareholder disagreement.
Shareholder Disputes
Conflicts can be very difficult to resolve amicably since they can result from things like a shareholder feeling they have been wronged and given the short end of the stick by a dominating owner. A disagreement over a corporation’s value when a shareholder or multiple owners decide to part ways can be greatly reduced when shareholders can frequently have the business independently assessed and conversations are open.
Partner Disputes
When a partner of the business is planning their exit from the company, things can become complicated in the transfer period. The precise stock value of the existing partner is a crucial component of the buy-sell agreement. A business valuation can help to fix the issue in this situation. By completely establishing an appropriate method and value to provide shareholders piece of mind and leaving them adequately compensated, it can also help the remaining owner or owners.
Getting a Business Valuation Ahead of Time Can Give You Great Benefits
- Gain a better understanding of company assets
- Enter more profitable acquisitions and mergers
- Access to higher quality investors
- Understand the potential resale value
- And, ultimately, avoid costly legal battles
Looking for a Business Valuation?
Look no further than VSP! Our team offers fully independent, professional and supportable valuation services that can not only help you with partner, matrimonial, or shareholder disputes but will also help you ultimately make smart and informed business decisions.
Contact us today to protect your finances and your business!