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BUSINESS VALUATION

FAIR AND RELEVANT VALUE

Whether you need financing for your business, admit new shareholders, undertake a business turnaround for tax compliance or business transfer, respond to “triggering events” in your shareholder agreement, assess the impairment of your intangible assets, or carry out a transaction (purchase or sale), we provide a precise opinion on the value of your business or your stake in a business.

We primarily provide 3 types of reports:

  • Calculation
  • Estimation
  • Full valuation report in complete compliance with the standards of the Canadian Institute of Chartered Business Valuators (CICBV)

We also prepare other types of specialized reports or provide an independent opinion on the conclusions of a valuation report prepared by another expert.

For instance, in a consulting mandate where independence is not required, we prepare a consulting report similar but different from other valuation reports in that we analyze the facts considering your best interest

OUR VALUATION PROCESS

The need for business valuation services can be unpredictable. That’s why it’s important for business owners to keep their small business financial statements organized and easily accessible.

A typical business valuation mandate will require, at a minimum, the following documents:

  • 3 to 5 years of historical financial statements (income statements and balance sheets)
  • A record of all previous valuations conducted
  • The shareholders’ agreement (if applicable)
  • The corporate organizational chart
  • The budget and forecasts for 3 to 5 years (if applicable)
  • The payroll report of owners employed within the company and their family members
  • The most recent tax return
  • The updated fixed asset tracking register

It is highly likely that we will request additional documents based on the results of our preliminary analyses.

OUR APPROACH

To form an opinion on the value of your business, we use at least 3 valuation methods:

  1. Value based on the capitalization of representative cash flows (historical or projections as applicable)
  2. Floor value determined through your net assets
  3. Value based on comparable market transactions

Once our valuation report is complete, we take the time to explain it to you to ensure you fully understand the methods used and the assumptions on which we based our opinion.