You’ve probably heard the term “business valuation” before. Putting a reasonable price tag to your business is necessary for your strategic plan. It reaps several benefits for you, as the business owner, regardless of whether you’re looking to sell or continue to maintain ownership. To take advantage of potential financial opportunities and avoid unknown legal liabilities, it makes commercial sense to conduct a . In essence, what you will be doing is providing historical financial sta...
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...
“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