Publications

Standard No. 110 of the CBV Institute
Jean-Claude Desnoyers2019-06-10T16:40:19-04:00Do 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 [...]

Buying a Business in 6 Steps
Jean-Claude Desnoyers2019-05-06T17:42:40-04:00Are 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 [...]

Increasing the value and profitability: the technology
Jean-Claude Desnoyers2019-05-06T17:43:47-04:00As 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 [...]

The main approaches in business valuation
Jean-Claude Desnoyers2018-12-17T11:21:45-05:00When 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 [...]

How to estimate the value of an established business?
Jean-Claude Desnoyers2018-11-06T10:36:22-05:00As 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 [...]

7 basic principles of business valuation : Principle 7
Jean-Claude Desnoyers2018-10-24T11:25:34-04:00Principle 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 [...]

Can I lease a business instead of buying it?
Jean-Claude Desnoyers2018-01-31T15:23:18-05:00First, 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 [...]

The 7 basic principles of business valuation : Principle 6
Jean-Claude Desnoyers2017-11-09T15:56:19-05:00Principle 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 [...]