Frequently Asked Questions
What is a Business Valuation?
A business valuation is the process of estimating the value of a company and provides an estimate of the company’s worth for situations such as preparing for financial investments, or selling or buying a business. Valuation reports can help you assess the strengths and weaknesses of your business so you can make informed decisions about how best to increase profitability in the future.
Valuation reports can also be instrumental when seeking financing or investments from lenders or investors.
What are the types of Valuation Reports you offer?
The type of valuation report depends upon the requirement for the valuation. There are 3 types of independent valuation reports - Calculation, Estimate and Comprehensive. These differ on the depth of analysis performed and time effort taken to complete. There are also other reports like Expert Reports, Advisory Reports, Limited Critique Reports and Investment Entity Review Reports. To know which report is likely to apply for your requirement
How much does Valuation Report cost?
It depends on a variety of factors and we encourage you to get in touch with us for a quote. Factors that influence costing are
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The purpose of the valuation.
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The risks associated with the valuation (eg: sharing with multiple parties that might rely on the valuation, is it a litigation related requirement etc.).
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The industry in which your business operates in; and
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The complexity of the business being valued.
What are the indicative timelines to complete a Valuation Report?
Calculation Reports usually take 2-3 weeks to complete upon receipt of all information. Estimate Reports take 3-4 weeks to complete. Comprehensive Reports will take longer to complete given the level of analytic depth they require.
Why do I need a valuations professional? Can by CPA not do it for me?
A CPA cannot appraise your business. You should use a certified, independent business valuator rather than an individual who is already working with your business.
A valuation is dependent on the credibility of the individual offering the opinion. In fact, using a certified professional greatly increases the likelihood that a valuation will be accepted by intended users. It is important to understand the credentials of the business appraiser that you hire. As a CBV and ABV firm, we are certified to issue reports in Canada and the US.