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...
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...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. <...
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...
The Growing Urgency for Business Valuation in the Modern Day Enterprise
has gained tremendous momentum in recent times and rightly so, given that it is a focal point for entrepreneurs who are preparing a good estate planning strategy. Most businessmen arrive at unrealistic figures of what their company is actually worth, leading to a conflict of interest between them and their shareholders, family successors, financial partners, potential buyers and tax assessors. Research sugg...If you’re a business owner, you’ll know that besides your tangible property, intangible assets also play an integral role in the modern day enterprise. It is estimated that companies today have intangible assets that represent two-thirds of the overall business value, although this estimate can vary significantly from business to business. It’s no wonder that understanding your company’s can help you further drive yo...
Relationships can break down over time. Many of us have experienced this with a friend, spouse or business partner. Disputes between two or more companies are also very common. Whether the dispute has arisen due to a breach of contract, breach of tender, breach of fiduciary duty, patent infringement, estate disputes, business interruption, product liability, shareholder dispute or any other commercial dispute, it is in everyone's best interest to seek a swift reso...
Business ownership can be complicated, particularly when there are multiple shareholders. The odds of disagreement and conflict among shareholders over various issues can be very high. When there must be a mechanism in place for dealing with the dispute or for enabling one or more of the shareholders to exit the business in a predetermined manner. A shareholder buyout can quickly turn into a costly dispute if the...
The . According to a publication by Mercer Capital: “About 75% of all private equity is owned by households for whom it constitutes at least half of their total net worth. Households with entrepreneurial equity invest on average more than 70% of their private holdings in a single private company in which they have an active management interest.” Wealth managers typicall...
The Ontario Arthur Wishart (Franchise Disclosure) Act (“AWA”) is designed to . Inherently the Franchisor is in a more powerful position and may not provide adequate disclosure to properly inform a potential Franchisee. When relying on insufficient disclosure, the Franchisee may enter into a contract in which it may not have otherwise entered into had sufficient disclosure been provided. If in fact there was inadequate d...