SERVICES OFFERED

Our services include business valuation reports, business purchase/sale advisory and financial consulting.

Business Valuation Reports 

Business Valuation reports provide an opinion of the fair market value of a business or business interest.   SME Valuation provides business valuation reports which comply with the professional standards of the Canadian Institute of Chartered Business Valuators (CICBV) for the following purposes:

  • Purchase or sale of a business(s)
  • Tax planning including Estate Freezes and Asset Rollovers
  • Shareholder disputes
  • Purchase Price Allocation

There are three options for the type of Business Valuation Report.

  • A Calculation Report provides a general range of the reasonable value of the business based on limited research and review.
  • An Estimate Report provides greater confidence and precision in the valuation conclusions based on a greater level of research and review.
  • A Comprehensive Report is based on a rigorous level of research, review and testing.

Intermediaries involved in the purchase/sale of small companies are usually not qualified to value a business.  A business valuation expert will make sure your pricing decisions are based on proper financial principles. Common valuation errors include:

•           Over-reliance on rules of thumb
•           Inappropriate application of earnings multiples
•           Lack of market research
•           Poor projection skills
•           Lack of understanding of impact of future capital investment versus depreciation
•           Improper adjustment of past earnings
•           Inappropriate treatment of debt, interest and taxes
•           Double counting of assets
•           Lack of detailed financial/operational analysis to understand value drivers
•           Lack of understanding of impact of working capital

 

Business Acquisition or Sale Advisory

In addition to Business Valuation Reports, we also provide the following services of business purchase or sale

Review / critique of business sale pricing and documents

In the SME market business brokers often prepare an investment document on behalf of the seller including a basis for the selling price. 
We prepare reviews of these documents indicating whether there are significant issues which can impact the value and which issues may require further diligence.

Due Diligence Assistance

SME Valuation can assist you to determine which documents and/or key factors should be reviewed prior to making your acquisition decision

Business & Financial Consulting

In addition to our services related to business sale or acquisition, our services include financial/management consulting for ongoing businesses including:

•           Business Decision Support
•           Forecasting / Budgeting 
•           Financial & Operational Analysis
•           Ad-hoc analysis

 

2022 SME Valuation, 416.201.2663