2 min read. As a business owner, knowing the value of your company is essential for making informed decisions, whether it’s for growth, acquisition, or divestiture. The business valuation process can be complex and time-consuming, which is why it’s crucial to hire a credible valuation firm to handle the task. In this guide, we will outline the steps involved in the business valuation process and explain why partnering with a professional firm is the smart choice for business owners. Step 1: Define the Purpose of the Valuation The purpose of a business valuation can vary greatly, from mergers and acquisitions […]
Valuation Process
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2.5 min read. According to the Canadian Federation of Independent Business (CFIB), nearly three quarters (72%) of small business owners intend to exit their business in the next 10 years. Considering that, it’s essential to know how to calculate the value of your business before beginning negotiation. In valuing an operating business, it is common to use the income approach as the primary approach while using another approach (such as asset approach or market approach) as a sense check to ensure the value arrived at is accurate and defensible. Under the market approach, the comparable transaction analysis is commonly used. […]