It is not uncommon for seasoned business owners to have a good intuitive sense of how important it is to know business valuation. This is essentially knowing how much your business is worth, based on the current market and its position in the industry. It also takes into account the work you’ve done to grow it over the years as well as the resources available for furthering your work.
Many business owners today are unaware that their current value is a large part of their overall personal wealth. A professional, independent business valuation will help you to stay on track for your business growth in Toronto and across Ontario as well as ensure your economic security. A business valuation can also be used for the following purposes:
Wealth Management Is Key
Business valuations allow you to determine the value drivers for your Ontario investment, and provide a benchmark to measure value enhancement. This allows you to track your business’s growth, which will also contribute to your financial security. A business valuation of your venture can help you determine how to better foster its growth and how you can reap the benefits of your investment.
Exit And Pre-Sale Planning
The business valuation of your Ontario enterprise is a good basis for planning, assessing and evaluating your exit options. This will allow you to have enough capital to fund future ventures or your next chapter in life such as retirement. A business valuation is a great way to ensure your investment will be sold at the best price in Ontario or Canada. A good valuation will help you make your business more liquid and easier to monetize, so that you can profit from the sale.
Every Business Owner Should Consider…
A professional business valuation is a great way to ensure that you are in the best position possible to negotiate a successful sale of your business. You can get the best price for your business when you know it’s true value. This will also give you financial security to fund your next venture.A business valuation is important for determining the price you should ask for any investment, whether it’s a buyout by shareholders, a management buyout or an employee share ownership plan.
A business valuation is a way to support the value of the transfer and act as an insurance against potential disputes with Canada Revenue Agency (CRA), including estate freezes, reorganizations and related party transactions. A professional, independent business valuation report will help you avoid any legal disputes in Ontario over the value of your joint venture, since it promotes full disclosure for all shareholders.
In the event of a divorce or matrimonial dispute, a business valuation can be used to support the division of assets. The Net Family Property (NFP), or the value of assets, is based on this. Professional and independent business appraisals can protect your Ontario business from possible Estate Tax Administration (EAT), reassessments. They ensure that the business meets legal standards and that all values are fair, independently obtained and based on current law.
In order to protect your investments and finances, a business valuation will help you determine the amount of coverage that is needed. Secure the future of your business in Toronto! Call us at 905-305 VSPL (8775) to discuss your options.