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.
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...
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...
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...
The Critical Element to Every Succession Plan: Preliminary Valuation | Business Valuation in Ontario
A preliminary company valuation report, prepared by an appropriate professional (Chartered Business Valuator), gives business owners a fairly good idea of how much a company is currently worth. It is strongly advised to have a credentialed (certified) valuation specialist on the Exit Planning Advisory Team. In , advisors use the preliminary company valuation and the five-year cash flow forecast to determin...
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....
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.