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...
Selling your company requires more than putting a price tag on it and asking for offers. To maximize business value and the price you ultimately receive in a transaction, a value as well as the value of potential economies of scale or synergies that would result from combining the target company with a particular acquirer. The concept of a fair market value is defined as “the h...
How much is your business really worth? There’s one way to find out!
When business owners are looking to know and understand how much their company is worth, they often overlook small details that help to determine an accurate , such as adjustments to the valuation multiple. In our previous article, we outlined the basics of what a valuation multiple is and the factors associated with increasing or decreasing that value. Accurately referencing rules o...
Many business owners understand the importance of knowing the value of their company. Unfortunately, many do not appreciate that an identifies the key risks facing the business that affect and determine an appropriate valuation multiple. The valuation of your business is integral to wealth management, tax/succession planning, a potential sale and dispute resolution. A thorough assessment is, therefore, required t...
When providing , Chartered Business Valuators (CBVs), are tasked with estimating the revenues that would have been generated but for the alleged breach and the costs that would have been incurred to generate those lost revenues as well as any increased overhead costs incurred as a result of the alleged breach. Previously, methodologies for establishing causation and estimating costs ...
A key part of quantifying economic damages in commercial legal disputes is estimating the lost revenues and costs to determine whether a plaintiff claiming lost-profits damages due to another party’s alleged wrongdoing has, in fact, suffered a loss, and if so, its resulting amount. To determine the lost revenues and costs, that must factor into an assessment of lost profits, lawyers representing involved parties in Toron...
Disputes in businesses often result in legal proceedings in which a claim is made. These claims may vary depending on the nature of the complaint or the breach that necessitates them, but at their core are economic damage quantifications or lost profits that resulted from the dispute. In providing to business owners and lawyers, business valuators work to provide the party they are c...