Understanding Business Valuation
A business valuation can accurately calculate your business’s worth and provide an accompanying report. The reports are prepared in accordance with the standards of the Canadian institute of Chartered Business Valuators.
A typical business valuation service will require at minimum, the following documents:
- 5 years of financial statements (income statement and balance sheet)
- Records of any previous valuations performed
- Shareholder agreements
- Budget and forecasts
- Payroll records
Additional documents may be required for business valuation service depending on the client. If a property is owned by the company, a current appraisal of the market value of the property will be required. McCabe valuations works with certified property appraisers in Ontario and can recommend an appraisal professional.
Our goal is to determine the Fair Market Value of an asset or business. In Canada, fair market value is defined as the highest price, expressed in dollars, that a property would bring in an open and unrestricted market, between a willing buyer and a willing seller who are both knowledgeable, informed, and prudent, and who are acting independently of each other.
Chartered Business Valuators are recognized as Canada’s experts in business valuation and litigation support. So what does that mean? In a business valuation engagement, it is a CBV's job to provide an independent and objective opinion of fair market value of the subject company.