BUSINESS VALUATIONS

The business valuation services are used to define the fair market value of shares of a business. Requesting the service of a charted business valuator (“CBV”) can help you obtain an objective and independent value but also guarantee a fiscal transaction and even in court. You might need a CBV in the following situations:

  • Estate planning

  • Purchase or sale of a business

  • Divorce

  • Transaction between related persons

  • Restructuration

  • Procedure of a minority shareholder

  • Purchase price allocation (PPA)

  • Shareholders agreement

  • Goodwill Impairment testing

  • Quantification of damages

  • Expropriation

  • Fairness opinion

  • Transfer price

At the leading edge of the news in the field of business valuation, we are perfectly able to establish the fair market value of your business. Our valuations are in accordance the best standards in the industry (“CICBV”) and these standards are recognized both in by Canadian courts and the Canada Revenue Agency.

 

The experience and the availability of our team will allow you to obtain quick and clear answers to your questions.

 

We provide quality valuation report, professionally produced, and at a reasonable cost.

 

Note that all of our valuation reports are reviewed by a second partner to provide a high standard of quality.

Need experts to value your business?

Strong of our previous experience in one of the largest accounting firms in the world. We conduct detailed and exhaustive analysis based on best practices in the industry. Our clientele is almost exclusively composed of accounting law and tax firms. They are now over a hundred to trust us.

Guillaume Vigeant

CPA, CA, CFA, CBV

Jasmin Deschamps

CPA, CA, CBV

Methodology 

For each of our assessments, we use several methods: a primary valuation method and one or more secondary methods in order to validate the fair value determined using the primary method.

Here are the approaches that can be used:

Liquidation value

The liquidation value is used when that the business does not appear viable as a going concern.

 

Under this approach, we assume that the business assets are to be sold for cash assets and we subtract liabilities and the tax impact at both corporate level and at the personal level.

Valeur  de liquidation
Return-based

The return-based method is usually used as primary valuation method.

 

This method consists mainly of three approaches, namely:

  • Earning capitalization;

  • Cash flow capitalization;

  • Discounted cash flow

 

Each of these methods consists to first determine a weighted average cost of capital and apply it to the selected return(s). Selecting one of these methods will be based on the type of business and information available.

Asset-based

The method based on assets is usually used as a secondary valuation method or as a primary method in the valuation of a holding company.

 

This approach is to assess the fair market value of assets and then subtract the fair market value of liabilities.

Market-based

The market method is usually used as a secondary valuation methodology.

 

This approach is to calculate the multiples of public comparable companies and/or similar transactions and apply these multiples to the sale and/or return figures of the assessed company.

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