What is a Valuation Report?
A Valuation Report is any written communication containing a conclusion as to the value of shares, assets or an interest is a business prepared by a CBV acting independently.
Why would I need a Valuation Report?
There are many reasons that an individual or a corporation might require a business valuation, including tax and estate planning, matrimonial, partner or shareholder disputes, business sales and acquisitions, commercial damages quantification, and numerous other circumstances. Valuation reports can be relied upon to determine value in a notional setting where a transaction will not take place, such as between shareholders in a marital dissolution or determining a share price for establishing stock option value. Valuation reports are useful in specific pending transactions such as a business sale or acquisition. Formal valuation reports may be required by securities legislation in specific transactions such as going private transactions or related parties transactions. Whatever the reason, the valuation of a business is a complex undertaking that requires specialized knowledge and abilities of a Chartered Business Valuator.
What is a Chartered Business Valuator?
The Chartered Business Valuator (CBV) designation is the foremost credential for professional business valuators in Canada. CBVs are experts who quantify the worth of all, or part, of a business or its securities with the ability to determine the value of tangible and intangible assets, including brand and intellectual property. They provide business valuation expertise in the areas of compliance, disputes and corporate finance, and notional valuations where a transaction will not take place. These are transactions between shareholders or other related parties.
CBVs are financial professionals who hold this designation granted by The CBV Institute, which is nationally and internationally recognized as the pre-eminent business valuation organization in Canada. The opinions of CBVs are respected and recognized by the courts in shareholder, partnership, securities, intellectual property and marital disputes, damage quantification, insurance losses, personal injury claims, patent infringement and breach of contract cases.
What is a Fairness Opinion?
Fairness Opinion is any written communication containing a conclusion as to the fairness of a proposed transaction to securities holders, from a financial point of view.
Why would I need a Fairness Opinion?
Fairness Opinions can be relied upon by the Board of Directors of public and private companies to satisfy the fiduciary obligations that they act honestly and in good faith in the best interests of the corporation to exercise care, diligence and skill regarding a specific proposed transaction.
What is Fair Value?
A value term commonly used in conjunction with minority shareholder dissent and oppression remedy rights, describing the basis upon which the acquisition price for the minority shares is to be determined.
What is Fair Market Value?
Fair Market Value means the highest price, expressed in terms of cash equivalents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arms-length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts.
I’m thinking of selling my business. What’s it worth?
CBVs quantify the worth of all, or part, of a business or its securities. We have the ability to determine the value of tangible and intangible assets, including brand and intellectual property, and then explain their rationale in an easy to understand manner.
I’m getting a divorce and have received a Valuation Report ordered by my spouse. I don’t believe it. What can I do?
Valuation reports can contain errors and inconsistencies. On the whole, these can add up to significant value differences. Our professionals can help you understand if the report has overlooked value. Talk to us today about critiquing the report.
Our business has grown dramatically and needs expansion capital. Should we go public?
A pubic company can enjoy improved access to capital but at significant costs to management time, energy and resources. Shareholder dilution is a necessary requirement. Our professionals can help you evaluate these costs and benefits. Contact us for more information.
I’d like to offer stock options in my private company to valuable employees. What’s a fair price?
We can offer advice on structuring stock option plans for private businesses. We can provide a valuation report to set the exercise prices of stock options and for other corporate transactions.
I have suffered an injury and my business is interrupted. Can you help?
Financial claims for business interruption are quantifiable and supportable. We can provide an opinion as to the value lost through personal injury, business interruption, or appropriation.
Do you value real estate or specific equipment?
No. Where appropriate, we rely upon experts in those fields.
What if I don’t want a formal report but just a final value?
Valuation Reports are tailored in complexity to meet client requirement for purpose and credibility. In certain circumstances, our engagement can be structured to meet your expectations up front. We will work to ensure that all parties needs are met.