How do you accurately value what your company is worth? Putting a dollar amount on your business requires careful examination of a large number of factors that can have far-reaching financial implications.
As a formal estimation of a company’s economic value, a business valuation is necessary for a variety of possible reasons, including a potential sale, establishing the value of shares, insurance coverage and divorce proceedings. It’s also a common tool in a corporate reorganization that includes an estate freeze or share crystallization (triggering a capital gain on your shares while continuing to own or at least control the corporation).
In the long run, it’s not always useful to value a business too high for maximum or a “stretched” sale price. At BlueRock, we partner with experts on business valuation who focus on determining fair market value based on historical and current financial data. Our goal is to find the value that will be acceptable by the CRA for tax purposes. Of course, both forecast growth or decline is assimilated into the valuation.
We conduct an in-depth business valuation process that considers:
- Thorough and accurate valuations
- Valuations acceptable by CRA
- Flexibility to accommodate future growth or decline
- Cash flow planning
- Financial planning
- Retirement and succession planning
- Estate planning
GET IT RIGHT
A lot can rest on how much your business is worth in the eyes of the CRA, potential buyers, insurers, lawyers and others. Ensure your business valuation process is detailed, accurate and offers the best possible outcomes for your larger financial plan.