Business Valuation

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.

Business Valuation

OUR APPROACH

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

Business Valuation

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.

Common Questions About Obtaining a Business Valuation

Knowing how much your company is worth depends on a variety of factors and can vary depending on your unique circumstances. We take a holistic approach to business valuations at BlueRock Wealth Management and have answered some questions about our valuation process down below.

When should a business valuation be performed?

There are many reasons why you should have a formal estimation of your business’ economic value performed. For example, a business valuation may be necessary to establish the value of shares, prepare your business for sale, or prior to divorce proceedings.

What is the purpose of a business valuation?

The primary purpose of a business valuation is to determine the fair market value of the operation. This can be done by assessing your operation’s current financial data and its historical financial situation. We will find a value that will be acceptable by the CRA for tax purposes.

What does your approach involve?

Our in-depth business valuation process involves valuations acceptable by the CRA, cash flow planning, financial planning, flexibility to accommodate future growth or decline, estate planning, retirement and succession planning, and other essential elements.

How will your approach benefit my business?

Our comprehensive business valuation approach will benefit your business in a number of ways. After we finish your valuation, you will be able to see the full value of your business from a monetary perspective for a variety of purposes.

How do I start the valuation process?

Start the business valuation process by contacting us directly and learning more about how our advisors and other involved professionals can help.

At BlueRock Wealth Management, our partners can assist with business valuations in the Southern Georgian Bay Region, including Collingwood, Creemore, Thornbury, and Wasaga Beach. We also serve most of South and Central Ontario, including Toronto, Oakville, Burlington, Kitchener, Waterloo, Guelph, Caledon, Barrie, Orangeville, Newmarket, Saugeen Shores, and Owen Sound.

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