Chartered Professional Accountants
ACCOUNTING, TAX, AND BUSINESS ADVISORY SERVICES
Business Valuations
When privately-owned businesses are successfully bought and sold, they are generally transacted at negotiated prices without the need for formal business valuations. In such cases, prices are generally based on the traditional ‘rule of thumb’ benchmarks such as multiples of gross or net earnings, asset values, licence values, etc.
Far from the traditional benchmarks, a Chartered Business Valuator can provide an independent assessment of the fair market value of a business interest, including producing Valuation Reports.
There are several reasons for valuing a business; some of the more common ones are:
Far from the traditional benchmarks, a Chartered Business Valuator can provide an independent assessment of the fair market value of a business interest, including producing Valuation Reports.
There are several reasons for valuing a business; some of the more common ones are:
- Income tax: Income tax rules require a business to establish a fair market value of its shares for capital gains purposes, when an event such as death of a shareholder or voluntary transfer of shares occurs.
- Estate planning: Tax planning involving inter-generational transfer of family-owned businesses entails determination of appropriate business values in order to satisfy tax requirements.
- Matrimonial disputes: When matrimonial assets include company shares, a business valuation may be required for dividing assets in the event of a marriage breakdown.
- Shareholder disputes: When disputes between shareholders result in one or more shareholder being bought-out, the buy-out value in many instances is determined by valuing the business.
We can provide Valuation Reports for various types of businesses to suit the needs of our clients.
