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Does a business owner really know his business’ value?

When a business owner thinks about his future, retirement or succession and that he is planning on selling, he must know the value of his business to determine the asking price according to the fair market value. However, there is a distinction between knowing its business and knowing the value of it. In my experience, 90% of the time the business owner selling his enterprise is experiencing this type of transaction for the first time. This is a big [...]

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Income statement analysis

For a business owner, it is useful to know how to interpret the numbers in the various financial statements. These documents gather financial information available in a business. These financial statements are mostly produced annually. However, some businesses produce them on a monthly basis. When produced annually, it may be more difficult to analyze them in order to adjust the aim when something comes up. When produced on a regular basis, they can be analyzed to make decisions to [...]

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Should I continue to operate my business?

Reassessment is very common for business owners. Often, entrepreneurs wonder if the profitability of their business is sufficient compared to the level of risk they take and to the investment in time and money they deploy. How do you know if you should continue to operate your business or whether you should hang up your skates? There is no absolute answer to those questions. A business valuation can be a good option to see clearer. A Chartered Business Valuator [...]

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Determine the available income for child support payment purposes

At the time of divorce, things to think about for both parties are numerous. Determining the amount of alimony may be a source of conflict. To determine the amount for support purposes, we must initially determine the available income to be used to calculate the amount of support.  Thus, this calculation should be as accurate as possible. It can be alimony for child or spousal support or for both. In all cases, it is imperative that the result of [...]

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Balance sheet analysis

When valuating a business, the analysis of the financial statements helps to understand its evolution. To understand the financial performance of a business, access to up to date financial statements is useful. Financial statements are the consolidation of financial information of a business. To understand the various financial statements, it is important to know what is contained in them. In this article, we will discuss the balance sheet and key ratios that are important to know. Financial information is useful [...]

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Networking to achieve customer goals

As a Chartered Business Valuator (CBV), I work with several professionals such as lawyers, notaries, accountants, etc. In doing job, some of the professionals that I work with are often looking to learn more about current business transactions in order to find good opportunities to offer to their clients. Many even ask me to help them regarding the sale of the business for a client, finding a partner, financing or potential acquisition.  In fact, a good portion of my [...]

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The benefits of valuating a business before buying

Buying a business is an important transaction in an entrepreneur’s life. A commitment that needs to be calculated and planned. Acquiring a business raises many questions for an entrepreneur: What should my selection criteria be for a company? Which elements should be included in my offer to purchase? As a current business owner, will this new venture create synergies with the one I have? This is my first acquisition, what type of businesses do I have the greatest affinity [...]

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Selling a business

The benefits of valuating your business before selling

Selling a business is usually the most important transaction in a business owner’s life. Most business owners will only sell one business in their lifetime. For the vast majority, the value of the business is the main source if income for their retirement. This is why the transaction must be well planned and executed. A Chartered Business Valuator (CBV) can help the business owner get a clear picture of ​​the business’ value, as well as measures to be taken to [...]

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Calculate contingent liabilities in case of divorce

In a divorce, the parties will have to prepare a balance sheet of their assets and debts at the date of marriage and date of separation. This assessment is usually done with a lawyer and aims to divide the property equitably upon divorce. Besides the list of assets and debts, this document presents an amount that must be estimated: contingent liabilities. A contingent liability is a debt, usually tax, payable on the disposal of an asset. It is calculated to [...]

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The importance of financial information at the sale of a business

Business owners do not always analyze the financial performance of their business every week or every month. This can often be attributed to lack of time. However, good financial information allows one to get a clearer picture of a company. In order to sell a business, the production of good financial statements is very important. It also attests to the owner’s sense of organization and control of business performance. This can allow the potential buyer to gain trust and [...]

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