Here are three compelling reasons to get your business valued:
1. Informed Decision-Making:
Strategic Planning: A business valuation helps business owners make informed decisions based on a comprehensive understanding of their business’s financial health and value. Many business owners are not certain of what their business is worth, and it is their largest asset for retirement, so having a professional valuation done can establish parameters and identify key drivers of value that can be focused on prior to an exit.
Exit Strategies: A business valuation is crucial for owners planning a sale, merger, or succession, providing a foundation for negotiations and realistic price expectations.
2. Mergers and Acquisitions (M&A):
Negotiation Leverage: A business valuation adds credibility and negotiation leverage during M&A discussions and provides a solid foundation for justifying the asking or offering price.
Synergy Identification: A business valuation can assist in identifying and maximizing synergies between merging entities as key drivers of value are determined, thus creating maximum value for both parties.
3. Estate and Tax Planning:
Succession Planning: A business valuation facilitates smooth transitions for estate and succession planning. In particular, a transition to a family member can be heavily scrutinized by CRA as it must be done at Fair Market Value (“FMV”) and having a professional business valuation can help alleviate any concerns raised by CRA.
Tax Optimization: A business valuation aids in developing effective tax strategies by understanding the FMV of the business.
Meet Our Advisors
Steve Bragg
Senior Advisor Practice Leader Transaction Advisory Services
Five Ways to Maximize Value on the Sale of Your Business
If you are thinking of selling your business, our years of experience have proven that there are 5 ways to reliably maximize value on the sale of your business.