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...
“Knowing the value of your business is just good business. It is important to get a professional business valuation, since owners may grossly overestimate or underestimate the value of their business.” Source: RBC Business Succession Planning: Your Essential Road Map There is often an immediate need to retain...
Should your accountant undertake your business valuation OR should you approach an independent valuation professional? There are pros and cons associated with each. Your accountant, while not formally or technically trained in business valuation, likely has an intimate understanding of your business, more so than any independent entity would. Read More
We completely understand. You have a sentimental attachment to your business having built it from the ground up. But have you ever considered what potential purchasers see when they look at your business? So let’s get down to brass tacks. What is the purpose of ? Business valuation is at the top of the age...
As a business owner, you naturally want to sell your business for the highest possible price. Your business represents your life’s work and getting a great price for it will help ensure you will be able to accomplish your goals in retirement. Making cosmetic changes to a firm at the eleventh hour before putting it on the market can only end in disaster. has picked up im...
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...
Divorce is not inevitable but it is also not improbable. According to Statistics Canada, approximately 38% of all marriages end in divorce. Many matrimonial divorces involve a family business that is the major source of funds/lifestyle for the family. The business can be put at risk if the divorce becomes highly contested and contentious. Depletion of financial resources combined with distractions and lack of focus/effort on the owner’s part can result in a forc...
Exit planning is essential if you want to maximize the value of your company prior to an actual sale or transition. Business owners should also have a formal exit plan in place to ensure there is a contingency plan in place in the event of death, divorce, disability, dispute, departure or natural disaster. Look no further than the current COVID-19 pandemic and its impact on so many businesses around the world. Having a formal exit plan in place provides you with the control to determine how a...