In an M&A transaction, many internal and external factors can influence the value of the business. Several aspects may be discounted or inflated by either party so that the asking price may fall far from market norms. This will lengthen the time for negotiations or even kill the deal.
In order to avoid this kind of situation for our clients, we are often engaged by our clients to prepare a Business Valuation executed by our Chartered Business Valuator (CBV) to understand – and defend- the fair market value of the business. This will then serve as the reference document during the ensuing negotiation process.
A professional Business Valuation is a crucial element and a major asset for any successful transaction. Our approach, based on a combination of practical expertise, financial techniques and market conditions, allows us to determine the most appropriate valuation technique for a particular company, optimizing its market value.
Our experts operate according to the guidelines and code of ethics of the Canadian Chartered Business Valuation Institute (CBVI). All Business Valuations are carried out according to the valuation standards of the institute.
A business valuation is practical and indispensable for:
• Strategic Planning
• Redemption of shares of one or more partners by the Company (Treasury Buys)
• Formation of a system of an employee stock option plan
• Mergers and Acquisitions
• Obtaining venture capital funding for startups
• Private placements
• Litigation support
• Tax planning
• Estate Planning
• Divorce Settlements
• All other transactions requiring an expert opinion