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Business Valuations

For many business owners, your business is the most valuable asset you own.  At many stages throughout your business’ lifecycle – from launch, growth, to exit – you will need to know and understand its worth.  However, understanding a business’ value is about 90% art and 85% science (read our Article on understanding business value). Yet with the help of an experienced professional, going through the process of determining the value of a business can be an informative and empowering experience.

The Value of a Valuation

While most business owners only consider a valuation when it comes time to exit their business, there are many reasons why it is beneficial to understand the business’ worth well in advance:

  • Benchmarking: Measuring the market value of your business on a regular basis can be an excellent method of tracking growth, performance and success. You know the operations of your business like the back of your hand – knowing its value as well should go hand in hand.
  • Share Valuation: For businesses with more than one shareholder, or for those considering bringing on additional equity partners, understanding the value of the company’s shares is a critical step in ownership negotiations.
  • Understanding Perspectives: Many assets are valued differently depending on who is looking at your business. Being strategic in considering what your business is worth from the perspective of potential purchasers, management buyers, or even family successors is key to discussing the preservation of capital.
  • Value Drivers: A valuation is an excellent starting point to understanding the worth of your business, but a valuation done through the lens of our “Value Enhancement & Exit Readiness” (VEER) assessment can further help you identify WHY your business is worth what it is, and what levers you can control to enhance that value. To learn more about how we work with business owners to enhance the value of their businesses, read about our VEER approach.

 

Let our team of experienced Chartered Professional Accountants help guide you through understanding the value of your business. Contact us for a free initial consultation.