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...
Valuing a business is a process and there are many factors to consider in determining the fair market value of a particular business. The current Pandemic leading to a global financial and economic crisis has led to valuations for companies to become quite volatile. Certain companies that are embracing technology have experienced growth and agile companies have managed to avoid liquidation but may take time to re-stabilize their cash flows. Other companies have not been as lucky – the loss...
VSP, serving Toronto and the surrounding GTA, conducts business valuations to maintain the integrity of your business even if it is currently generating losses or negative earnings. Despite the current losses, if your business has an established and proven track record and a plan to return to profitability, it can have value in the marketplace.
A Chartered Business Valuator can help you properly asse...
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...
As a business owner, you not only have strong sentimental connections to your business, but a vested financial interest. Naturally, you’d want to set up your business transactions in a way that fetches you the most lucrative value, and accomplishes your retirement goals. Last-minute cosmetic changes won’t benefit you in the slightest. If you are preparing for an important bus...
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...
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 ...
Many business owners have more than 85% of their net worth tied to their business, the one significantly non-liquid asset. As a result, getting an independent business valuation is incredibly important. The valuation report provides the economic worth of the owner’s interest in the business. If the business is part of the estate, a valuation can help you take strategic measures to enhance your company’s value over ...
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...
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...