Discover your value through our business valuation services In Burlington, Oakville & Hamilton.

It comes down to the magnitude of the cashflow the business can generate and, the inherent risks (such as customer risk, supplier risk, industry risk, regulatory risk, employee risk, key person reliance risk) associated with generating those cashflows, and assessing whether the business and its assets are transferable to a potential buyer (i.e., is not the personal goodwill of the owner).

Quite often a business is the most significant asset of the business owner so an understanding of what the asset is worth is important. Also, understanding critical success factors to the operations and risks of the business to improve value is beneficial so that the owner’s exit strategy is planned well in advance, improving the price that will be achieved in a sales transaction.

Any business owner can benefit from this. Your business should always be ready for a sale. Understanding what it is worth if you ever approached is good to know. As it allows you to focus assessing offers made by a prospective buyer.

Other reasons include income tax purposes and estate planning.

In regards to income tax planning purposes, obtaining a valuation completed at fair market value to meet CRA requirements is highly recommended. Obtaining a valuation in this context limits your exposure and future potential liabilities with CRA by supports the value that the shareholders of a business are transacting at.

With respect to estate planning, it is beneficial to understand the potential value and size of an estates’ assets as these govern tax strategies and planning around a business owner’s death and facilitating the transfer of the business to the next generation while minimizing the taxes owing upon death of the tax payer.

A business valuation ensures you are transacting at a price that is at least equal to or greater than  the value of your business, so you can reap the fruits of your labour.

Business owners may have unreasonable expectations of their company, and quite often price the business at more than it is actually worth.

A business valuation will help you accurately assess the value of the business and provide you with the ammunition to enter negotiations to maximize the price you will ultimately receive.

There are three types of performing business valuations:

1. Asset based valuations
2. Earnings based valuations
3. Market based valuations

SB Partners work with different industries. Our valuation team most often provide services in these industries:

• Manufacturing
• Software Development
• Consulting
• Landscaping
• Metal fabrication
• Restaurant service

We have worked with different types of industries, not limited to the items listed above, and different sizes of companies.

Our accounting firm not only works with SMEs and privately owned businesses, we also work with partnerships and publicly traded corporations.

Business valuation is the process of determining a business’s economic worth, crucial for decisions like mergers, acquisitions (M&A), and tax planning. A Chartered Business Valuator (CBV) is recommended due to their specialized training and expertise. CBVs provide accurate and credible valuations by analyzing financials, market trends, and unique business aspects. They tailor approaches to the business’s nature and purpose of valuation, handle complexities, and offer insights for strategic decisions. CBVs are trusted for litigation support, M&A negotiations, tax planning, and financial reporting. Their expertise ensures accurate business value assessment, benefiting stakeholders and informed decision-making.