Valuations and Financial Advisory

Valuation Reports

Our firm has a qualified Chartered Business Valuator who specializes in Valuation Reports issued under the Canadian Institute of Chartered Business Valuators (“CICBV”) guidelines.

You may need a valuation report in the following circumstances:

  • For the purchase or sale of a private business interest
  • To establish value in a tax planning arrangement
  • During a matrimonial dispute to help determine the equalization payment (i.e. divorce settlement)
  • To resolve a shareholder dispute (when one shareholder needs to buy another out, what price is fair?)
  • When drafting or revising shareholder agreements (how will the value of the business be determined if one of the shareholder gets sick and needs to be bought out?)
  • To establish and maintain an Employee Share Ownership Program (“ESOP”)
  • Strategic business planning (i.e. maximizing the value of your business by focusing on key value drivers and reducing excess working capital on hand)
  • To help with other litigation matters and dispute resolution

We will help you understand the key drivers a third party will likely use to determine the value of your business.  This is an essential aspect of preparing for an eventual sale or transfer of your business interest. 

We can act as an independent third party (i.e. prepare an independent valuation report) or as an advocate (i.e. critique the independent valuation report or provide you with an advisory report) depending on your needs and the situation. 

Financial Advisory

Buying and/or selling a business can be the most important financial transaction you will enter into in your lifetime. To ensure you maximize value on sale or avoid the common pitfalls in a business acquisition you should consult a professional financial advisor.

Some of the services we offer to purchasers of private businesses include:

  • Financial due diligence (review of the detailed financial records of the seller for accuracy and notable items affecting price)
  • Financial modelling (drafting financial projections which allow you to make a more informed decision and test best case, worst case scenarios)
  • Tax planning
  • Corporate structuring (to streamline the corporate structure in a tax efficient manner to reduce professional fees and simplify reporting in the future)
  • Review of legal agreements (to mitigate the risk a deal is structured in a such a way that you pay more than you expect or take on an unknown liability)

Some of the services we offer to sellers of private businesses include:

  • Financial modelling (calculations and financial projections which help you and us understand what drives the value of your Company)
  • Preparation of confidential information memorandum (a “brochure” provided to select potential buyers marketing your business)
  • Selecting and approaching possible purchasers (using our key contacts to find a suitable buyer who will pay fair value)
  • Helping obtain bridge financing options (some buyers aren’t willing to pay all cash and need to finance the purchase of your business – we can contact the banks for help with this scenario)
  • Preparation of due diligence information (for the buyers to review the details of the Company quickly and efficiently to expedite the sale process)
  • Negotiation of price and terms
  • Financial close (organizing the flow of funds and final steps required to be taken when selling a business)
  • Review of final legal agreements (to ensure the price and all other considerations have been taken into account and appropriately documented)

Please visit www.lighthousevaluations.ca to learn more about our advisory practice services available, or please contact Jared Behr, CPA, CA, CBV or Wendell Meeres, CPA, CA.

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To learn more about the Canadian Institute of Chartered Business Valuators please review the following website: https://cicbv.ca/what-is-a-cbv/