What are the common reasons for a Business Valuation?

Business Valuation services have multiple practical uses for the benefit of your business. Primarily, one is most successful when one is best prepared. Examples of common Valuation applications for your business are:

  • Selling the Business
  • Divorce
  • Buying a Business (Acquisition)
  • Partnership
  • Management Buyout (MBO)
  • Estate Planning

Most business owners intuitively understand the importance of knowing a value range. However, many business owners do not know or understand the current value when in fact, this can represent a significant portion of their overall wealth.

Is it always good news? It is not always bad. In fact, a valuation can save you future disappointment. Realizing fair valuation may save you from an unexpected tax bill in your future, depending on your plans.

Faced with evolving business practices and fast-paced technology continuing to shift how we do or manage our entities, we know complex and real-time changes will continue to respect corporate value.

Business owners need to capitalize on future opportunities as well as today’s challenges. The short-term focus that grips many organizations may miss rich opportunities for future success.

Obtaining an independent, professional, business valuation is a critical step in wealth management and succession planning.

Expanding on the Possibilities

 
Knowing the value of your business is simply good business. Knowing that you have a future with options and possibilities, whether you plan for these or not, are necessary to understand.

  1.   Planning an Exit Strategy – provides a basis for planning and assessing exit options.
  2.   Wealth Management – identi es key value drivers and provides benchmarking for measuring value enhancement.
  3.   Pre-sale Planning – identi es probable top dollar for the most attractive business. A valuation can provide the business the capacity to become more liquid and monetized.
  4.   Selling the Business – creates valuation used as a basis for negotiations with potential purchasers including asking price and assessing unsolicited o er(s).
  5.   Internal Transfer of Business – establishes a price for a shareholder or management buyout, manage or employee share ownership plans.
  1.   Tax and Estate Planning – supports the value being transferred and acts as an insurance for potential disputes with CRA such as estate freezes, reorganizations, and other matters. May also protect against additional administration tax reassessment.
  2.   Life Insurance Coverage – provides a reliable value by which to purchase life insurance, fund a buy-sell agreement, fund taxes on death, etc.
  3.   Shareholder Disputes – proves to be prudent in legal disputes over actual value (i.e. full disclosure to all shareholders).
  4.   Marital Dissolution – monetizes the business as an asset to be included in the net family property statement for use in property division.

Expanding on the Possibilities

 
Knowing the value of your business is simply good business. Knowing that you have a future with options and possibilities, whether you plan for these or not, are necessary to understand.

  1.   Planning an Exit Strategy – provides a basis for planning and assessing exit options.
  2.   Wealth Management – identi es key value drivers and provides benchmarking for measuring value enhancement.
  3.   Pre-sale Planning – identi es probable top dollar for the most attractive business. A valuation can provide the business the capacity to become more liquid and monetized.
  4.   Selling the Business – creates valuation used as a basis for negotiations with potential purchasers including asking price and assessing unsolicited o er(s).
  5.   Internal Transfer of Business – establishes a price for a shareholder or management buyout, manage or employee share ownership plans.
  6.   Tax and Estate Planning – supports the value being transferred and acts as an insurance for potential disputes with CRA such as estate freezes, reorganizations, and other matters. May also protect against additional administration tax reassessment.
  7.   Life Insurance Coverage – provides a reliable value by which to purchase life insurance, fund a buy-sell agreement, fund taxes on death, etc.
  8.   Shareholder Disputes – proves to be prudent in legal disputes over actual value (i.e. full disclosure to all shareholders).
  9.   Marital Dissolution – monetizes the business as an asset to be included in the net family property statement for use in property division.

Pavilion Valuation Services 
Serving Canadians Coast to Coast
Phone: 1-800-758-2922
Email: 
valuations@pavilionservices.com

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