Business ownership is complicated, particularly when there are a number of shareholders. The odds of disagreement and conflict can be very high. When shareholder relationships break down there should be a mechanism in place for dealing with the dispute and for enabling one or more of the shareholders to exit the business in a pre-determined manner. This mechanism should include agreement among the shareholders to obtain and review, on an annual basis, an independe...
If you are looking into selling a company in your portfolio, a division or even your entire business it might be time to look into getting an independent valuation report. A valuation report does what the name suggests and can inform various financial aspects of business, litigation and personal matters. A valuation focuses on the details making sure nothing goes unmissed and that’s why it’s important to work with a ...
Business valuation is a vital component of an effective pre-sale planning strategy. It allows entrepreneurs to understand what drives the value of their company and implement key changes in their business model to increase value in the future. At VSP, we prepare professional that offer insights on how to strategically increase your business’s value over time prior to a sale. This r...
One of your greatest allies in avoiding expensive litigation affairs can be a business valuation! Recently more and more businesses across Toronto are using business valuation to their benefit. It’s not unlikely that during legal disputes, whether it be from matrimonial or a partner or shareholder, the business’s value is an area of contention. Chartered Business Valuators, or CBVs, may be summoned by the court to pr...
The current Pandemic and ongoing economic crisis may have caused the value of your client’s company to decline. This may be an opportune time to consider an estate freeze to lock in the company’s current low value and reduce taxes ultimately payable on death by the client’s estate. Some of your clients may be faced with having to determine the during these times. This could be for tax/estate planning purposes, transaction purposes or dispute related purposes (e.g. commercial, shareho...
2020 was a year of unprecedented adjustments. The COVID-19 pandemic has shifted our views on how we run our business, how much risk we are willing to tolerate, and, perhaps, when should be the right time to exit/sell? VSP Valuation provides independent professional to the business and legal communities. We also provide independent in the even...
It is easy to criticize valuation clauses in most Buy-Sell Agreements as being inadequate. Read More
For typical business owners, the answer to one question determines their ability to leave their businesses successfully: “How much money will I get when I sell?” This is one of the reasons why owners should know the value of their businesses....
For most business owners in the lower and middle markets, the business itself is the owner’s most valuable resource. While owners work within the business, it’s their income and perks that have immediate, tangible value. As owners and advisors , owners must confront the fact that what the business is worth to them rarely lines up with that the business is worth to others. In many...
When working with business owners interested in selling to a third party, need to do three things: (1) help owners set goals that will allow them to determine whether an offer from a third party is “good” or “bad,” (2) educate them about the sale process, and (3) prepare their companies for sale. However, some business owners are boundlessly optimistic about their sale prospects. This boundless optimism can make their business susceptible to Deal Killers.