This is a common misconception and one that could not be further from the truth. But First, What is Business Valuation? Business valuation is not merely a popular concept in corporate finance but has gained significant real-world traction among business owners. An independent business valuation helps the owner understand the fair market value of the company and should be conducted for many different reasons. <...
All business owners will exit their business at some point, either through planned or unplanned circumstances. However, there are certain events that could thwart what should be an otherwise hassle-free business transfer.
Why Exit Planning is So Critical to Business Owners
When business owners explore new opportunities, planning to retire or stumble upon certain financial troubles or health risks, they ma...
Is there really a right time to conduct a business valuation? If so, when? Being able to justify and support the value of the business is a pressing issue for business owners, particularly when they are looking to exit their business in the near future, dealing with a shareholder or matrimonial separation or undertaking tax/estate planni...
It is a tumultuous time for shareholders when one partner, or shareholder, decides to exit the business. is of immense importance in such a scenario, as each partner has a vested interest in ensuring that a fair price is attached to the business. Without a Shareholder Agreement or a pre-determined process for dispute resolution among shareholders, a costly and stressful litigation p...
Human error leads to mistakes and mistakes in a can prove costly. The complexities involved in valuing a business are tremendous and this process should be undertaken with due care by a licensed professional. Grossly overvaluing or undervaluing a business because of careless mistakes could prevent a transaction from occurring, leading to disputes and potential litigation down the ro...
Associates, friends and investors with complementary skill sets often start a business together. Over the years, the priorities of the business and business partners evolve to be reprioritized. A business partner priorities may stem from several situations; a partner’s retirement, a disagreement, a new business opportunity, reduction in time involvement in the business due to personal reasons etc. Conflicting priorities...
A business valuation can be your greatest ally to avoid expensive litigation affairs! In fact, more and more . Why is business valuation important? Oftentimes in partner, shareholder and matrimonial legal disputes, the value of a business is a major area of contention. The court may summon Chartered Business Valuators (CBVs) as experts to provide expert testimony ...
Business valuation is a vital component to an effective planning strategy. It allows entrepreneurs to understand what drives the value of their company and implement key changes in their business model to prepare for the future. Without a reliable third party valuation, the business owner may arrive at an unrealistic sense of how much the company is worth which will likely be at odds with what potential inves...
“By failing to prepare, you are preparing to fail”- Benjamin Franklin
A good plan today can save you from a failed exit tomorrow. Even if you are just starting a business, you should plan your exit before actually beginning the business venture. If you do you will be ahead of the other half of all business owners who do not. To h...