We understand that the level of complexity in a business valuation can often be just as high as the stakes. Determining the value of your company, its securities or its assets is critical in many merger, acquisition, tax planning, financial reporting and litigation situations.
We meet those challenges with comprehensive, objective and insightful advice for private and public companies across a wide range of industries. You can rely on our deep understanding of industry and operational knowledge to identify specific dynamics and issues affecting a company’s worth.
Knowing what your business is worth is a powerful tool for decision-making and is a meaningful benchmark for your and your team’s success. Sound, expert advice cannot be underestimated, when the equity in your business is most often the most significant asset in your portfolio.
Our support with transactions and restructuring delivers the clarity you need to effectively manage the process and enhance overall shareholder value.
We assist buyers, sellers and lenders to develop and execute their goals, including:
- Analysis of business strategy, identification of financial objectives and planning for strategic positioning of the business in a sale or purchase
- Extensive qualitative and quantitative market and competitive analysis
- Detailed historic and prospective financial analysis with focus on value, ownership dilution, investor return and operating performance including sensitivity analysis, cash flow forecasts
- Preparation of investor correspondence, including management presentations, confidential investment memorandums, executive summary and teaser documents
- Identification of prospective buyer and capital targets
- Identification and quantification of synergies
- Calculations of net proceeds to shareholder for tax and financial planning purposes
- Executive coaching for management presentations
- Advice in capital and corporate structuring
- Due diligence, legal review and analysis of documentation including shareholder and employment agreements, purchase and sale and lending agreements, etc. in order to close on the transaction
With extensive experience in accounting and income tax planning, we focus on the details and take into consideration recent changes from accounting and tax authorities and the courts to provide a clear, concise valuation conclusion required to withstand scrutiny.
Our independent, objective valuations are required to support the following tax and compliance situations:
- Corporate reorganization
- Impairment testing
- Related party transactions
- Transfer of assets between tax jurisdictions
- Estate and trust planning
- Date of death tax returns
- Tax dispute resolution
Corporate reorganizations may be required in order to structure a company based on an owner’s evolving needs. Your accountant should work closely with you to determine the most tax-effective structure for your corporation given your company’s current situation and future goals, and considering current and planned tax laws.
The reasons for a corporate or business restructuring may include:
- Tax planning
- Family succession planning
- Sale of your business
- Incorporating a business
- Purchase of another business
- Cross-border tax planning
- Creditor protection for your business
In litigation, we provide independent and expert advice on valuation and quantification of economic damages for every situation.
We review and analyze the financial data, validate our conclusions, provide expert testimony and advise for mediation and alternative dispute resolution in valuation and damage matters involving:
- Commercial and civil litigation
- Pre and post matrimonial breakdown
- Shareholder disputes and oppression remedies
- Tax disputes
- Mediation and settlement negotiations
Tax lawyers, taxpayers, and tax authorities are involved in a variety of disputes at the appeals stage and at all levels of Court in Canada in respect of the valuation of shares or assets, intellectual property and other intangibles. At Capital Assist (Valuation) Inc., our team of experienced CPAs and CBVs provide trusted analysis, opinions and evidence to advise and assist in resolving tax disputes.
Shareholder agreements provide a road map for decision making between business owners and need to be carefully crafted to ensure the best outcomes.
There are various events in the business life cycle that trigger a valuation, including:
- A dissolution or buyout of your shares
- A shot-gun arrangement
- Transfer due to a marital breakdown
- A serious disagreement among shareholders
- Permanent disability
Federal and provincial business statutes also require a valuation be made as part of any proposed remedy to corporate oppression of minority shareholders. In every scenario, we carefully analyze the business dynamics and value catalysts underlying the business or a shareholder’s goals and arrive an independent, objective, expert conclusion to meet your needs.
Related party transactions are measured either at their carrying or exchange amount. CAV can assist where the use of the exchange amount is supported by independent evidence, which includes at least one of the following:
- Independent valuations, appraisals by qualified parties not related to the enterprise;
- Comparable recently quoted market prices in an open and unrestricted market;
- Comparable independent bids on the same transaction; or
- Comparable amounts of similar transactions actually undertaken with unrelated parties.
In estate and tax planning, the transfer of assets or shares must occur at fair market value. An independent valuation can provide a fair and objective basis for fair market value which can mitigate against potential dispute or challenge by CRA. An opinion by an unqualified accountant or advisor can lead to inadequate fair market value assessments, which can result in penalizing tax consequences and costly appeals or litigation.