Author - Jean-Claude Desnoyers

Standard No. 110 of the CBV Institute

Do you know how to get an initial idea of the quality of a business valuation report submitted to you? Chartered Business Valuator (CBV) have professional standards that they must comply with. These Practice Standards, established by the CBV Institute, have been put in place to ensure that reports published by CBV contain a number of important information presented in a consistent manner. Standard No. 110, in particular, deals with valuation reports: when you know about it, it can help you [...]

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Buying a Business in 6 Steps

Are you planning to acquire a new business in the coming years? As a Chartered Business Valuator (CBV), I can offer my services to assist you in this important decision. With my colleague Alexandra Danis, Certified Human Resources Professional (CHRP), we can support you throughout this transaction, from the first glance at a business you want to buy to how you can increase its profitability and value once you own it. I, therefore, propose to present you the different stages [...]

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Increasing the value and profitability: the technology

As explained in one of my previous articles, in 2016, I joined a team of experts in the fields of marketing, technology and human resources. By combining their knowledge with the one I have acquired throughout my career as a Chartered Business Valuator (CBV) and CPA, we can offer more specialized advice tailored to the needs of clients who want to increase the profitability and value of their business. In my first publication on the subject, we discussed how a [...]

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evaluations-entreprises

The main approaches in business valuation

When you use the services of a Chartered Business Valuator (CBV), do you know what kind of work he will do to give you the most accurate assessment of the fair market value of a business? Do you have an idea of ​​the questions he asks himself, the decisions he has to make, and based on which factors? Depending on the business situation and available financial information, the CBV will choose one or more specific valuation methods to meet your [...]

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blog_estimer_valeur_entreprise

How to estimate the value of an established business?

As an owner, you may need to determine the value of your business. If your business is established, and its sales/profits are stable or growing steadily, and you get it appraised by a Chartered Business Valuator (CBV), it is likely that he will be using a method called “Capitalization of Maintainable Earnings” to determine the fair market value of your business. This valuation method also bears other names such as capitalization of earnings method. In this method, the business’s past [...]

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Principe 7

7 basic principles of business valuation : Principle 7

Principle nº 7: Absent a shareholders’ or other ownership agreement, or legislation or adjudicated legislative intent that dictates otherwise, the value of a controlling interest in a business may have a greater value per share than does a minority interest in that same business when each is viewed in isolation. The first 6 basic principles explained in the previous articles allowed the Chartered Business Valuator (CBV) to determine the total value of a business. The 7th principle, instead, revolves around [...]

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Acheter-ou-louer-entreprise

Can I lease a business instead of buying it?

First, let’s take a look at some known facts. I’ve seen many examples in practice of leasing part of a business. A hotel, for example, could decide to lease their restaurant instead of operating it themselves. But, what about leasing the whole business? To answer the question, let’s break a business down to its assets. We could separate the operating assets of a business between the tangible assets and the intangible assets. Tangible and intangible assets First things first, let’s [...]

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The 7 basic principles of business valuation : Principle 6

Principle nº 6 : Value is influenced by liquidity. The value of a business is influenced by its liquidity. Liquidity can refer to two concepts: How easy it is to sell a business and Liquidity of the assets in the business. In both cases, we refer to how easy it is to convert an asset into cash. In this article, we will discuss how easy, or not, it is to sell a business and the impact of this on its value. The liquidity of a business [...]

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Marketing-entreprise

Increasing the value and profitability

Marketing Being a Chartered Business Valuator and a chartered professional accountant, I have specialized in determining the fair market value of a business. I’m then in a great position to define ways to increase the profitability of businesses and their value. When I talk to clients who want to increase the profitability of their business or its value, it is not unusual for them to be advised that: “to increase the profitability of your business and its value, you just [...]

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The 7 basic principles of business valuation : Principle 5

Principe 5 : When the value is considered to be equal to the present value of all future benefits that the owner should accumulate, this value can have two distinct components: commercial (transferable) or non-commercial (or value to owner) value. The definition of fair market value refers, among other things, to the highest price that a buyer and a seller would be willing to transact. Without making any direct reference to it, it is clear that what interests a buyer is [...]

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