Alberta Business Valuations
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Budget-Friendly Alberta Business Valuations.
We Provide AFFORDABLE and ACCURATE Alberta Business Valuations.
Who Can Benefit from a Alberta Business Valuations?
Our Alberta Business Valuations are:
A business valuation shouldn't break the bank. We keep things affordable and provide good value.
Our Alberta business valuations and appraisal reports are well organized and presented clearly.
Our business valuations in Alberta are well-researched and prepared by experienced valuators.
Alberta business valuations play a crucial role in determining the fair market value of a company, which is essential for various purposes such as mergers, acquisitions, and succession planning.
An accurate business valuation helps business owners make informed decisions, attract investors, and ensure compliance with legal and financial requirements. Understanding the value of a business also provides insights into its strengths and weaknesses, guiding strategic planning and growth opportunities.
Ultimately, a thorough business valuation is invaluable for maximizing the potential of a company in Alberta's competitive market.
Specialists in Calculating Fair Market Value.
Knowing what your Alberta business is worth is the key piece of information you need to complete retirement planning, strategic planning and determine if the time is right to sell your business in Alberta.
We can tell you what your business in Alberta is worth so you can make wise decisions and plan for your future.
We provide professional Alberta business valuations services specializing in determining the market value of privately-held Alberta corporations and family-owned Alberta Businesses.
Why Get a Alberta Business Valuation?
A business valuation is often needed to get third party or bank financing to buy or grow a business.
No one wants to leave money on the table. You have worked too hard to sell for less than its worth.
A Wrong Business Valuation is a Deal Killer.
When it comes to buying or selling a business in Alberta, even an honest mistake or a simple miscalculation in terms of the value of a business can derail the sale of a business.
Inaccurate or incorrect business valuations can lead to significant consequences for a company. They may result in poor decision-making, such as overpaying for acquisitions or misallocation of resources, which can ultimately harm financial stability. Additionally, stakeholders might lose confidence, leading to decreased investments. Overall, a flawed valuation can jeopardize the business long-term success and growth potential.
In the context of a business transaction, if a business is incorrectly valued below the Fair Market Value of the business, the Seller will list the business for less than it should be, and as a result, the under-valued business will be sold for less than it should have been causing the Seller a significant loss of income on the sale of the business.
Likewise, if a business is incorrectly valued above the Fair Market Value of the business, it is unlikely that a Buyer will be able to secure the third party financing needed to complete the business purchase. In addition, any qualified buyer who completes sufficient due diligence will quickly determine that the business is overpriced and the buyer will likely walk away from the deal wasting both the buyers and the sellers time and energy.
For both a Seller and a Buyer, the cost of having a Alberta Business Valuation is small compared to the significant financial risks that a buyer or seller could face without a professional business valuation in hand.
Alberta Business Valuations
How to Value a Business
Business Valuations are based on a complex set of methodologies and industry standards as well as market indicators and the skill and experience of the business valuator.
The purpose of a business valuation is to determine what a Buyer would pay for your business in an open market. For most small business and the lower end of mid-market companies, a business valuation is based on arriving at the Fair Market Value of a business.
Business Valuation Methods
Alberta Business Valuation Services
Our Business Valuation Services begins by reviewing your financials, starting with your previous three year-ends, and your current year to date financial reports. But we go deeper and farther than just providing a financial analysis. We know how the real world works and how businesses are valued in actual market transactions.
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We take the time to understand you and your business. What makes it unique. What are its value drivers. How is your business positioned in the marketplace and how do the current economic factors affect the value of your business if you were to sell it today.
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We give you an accurate picture of what the current market value of your business is. We provide the Fair Market Value (FMV), the Most Probable Selling Price and a range of pricing options to fit your exit strategy, timing and other goals.
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In the end, you have confidence and peace of mind knowing that you have the most accurate information and data at your disposal so you can make a sound decision.
What is a Business Worth?
It's More Than Just a Number.
The first question we are asked when we meet with a business owner thinking of selling their Alberta business is, "What is My Business Worth?"
Business Sellers need to know what the value of their business is so they can make an informed decision if selling their business is right for them. Business Buyers need to know what a business is worth to ensure that they don't overpay for the business, and to make sure that they can secure some level of third party financing to buy the business.
Fair Market Value.
Business Valuations are based on a complex set of methodologies and industry standards as well as market indicators and the skill and experience of the business valuator.
The purpose of a business valuation is to determine what a Buyer would pay for your business in an open market. For most small business and the lower end of mid-market companies, a business valuation is based on arriving at the Fair Market Value.
There are three generally accepted methods to valuing a small business:
The ASSET Method
The Assets of your business, minus any liabilities are considered the value of a business. There are numerous ways to determine the Asset value. This method is generally used for businesses that are not generating profits, or deemed to be a ''going concern" business. In most cases, the Asset Method does not accurately reflect the value of a business that is generating positive earnings.
The MARKET Method
Similar to the way real estate is valued, the Market Method compares your company to similar companies in your industry and geographical area. Business Brokers have access to databases to find details about what like businesses to yours have sold for. We compare gross sales and earnings of those businesses to your business. The Market Method is a useful and strong indicator of your businesses value.
The INCOME Method
The Value of your business is determined by the income stream that it will bring to a buyer. This method uses past and current earnings to predict future earnings. The assumption is that the buyer will maintain the current income levels as steady past earnings are a reasonable indicator of what the future earning probability of the business will me. Generally formulas are used that multiply earnings to get a value.
The methods above are provided in the simplest form possible. Within each method, there are many sub-categories and valuation techniques depending on the size of your business and your industry.
If your business is generating profits, there is a good chance that the primary method of valuing your business will be the Income Method, and the Market Method will be used to confirm the findings of the Income Method.
