March 24, 2021
Routine business valuations are a crucial component for successful businesses. Companies that undergo regular business evaluations have data, analyses, and industry insights that allow the business to make informed, rational measures in response to – or in anticipation of – significant events that would otherwise cripple or bankrupt a company. EVCOR, a business valuation company in Edmonton, can help Canadian companies prepare for such important events.
Business evaluation services are commonly associated with selling or buying businesses. However, there are several other events and scenarios where a professional, third-party business evaluation can provide essential insights and reduce the associated time and costs:
When shareholders disagree, and the only solution is to part ways, a certified valuation of the business is essential. To ensure a fair division of marital assets, invoking a professional business valuator’s services is vital.
Owners of family-run businesses should hire a business valuation company at the beginning of significant personal events such as estate planning and legal issues associated with marriages.
Contrary to popular belief, business owners should not wait until a major event to perform an valuation. Whereas some business-related events cannot be accurately predicted – such as natural disasters or cyber security incidents – many significant events can be anticipated months or years ahead of time, such as retirement and business restructuring. Hiring a business valuation firm to perform annual appraisals is the best way to ensure that the company has current data to handle unexpected and foreseeable events. A yearly business valuation is comparable to a person’s annual physical exam, as both measures provide a snapshot of overall health and lead to suggestions to course-correct and improve for the next check-up.
Business evaluation services perform more than assigning a price tag to a business. A professional business evaluation considers the business’s overall operations and prospects, which lead to recommendations and strategies to improve the business. Business evaluations associated with selling businesses are a strong example; in addition to calculating the price of the business being sold, business valuation companies can provide the seller with insights, plans, and warnings to increase the asking price of the business and to ensure that the sale does not cause unnecessary complications or potential exposure to legal issues.
EVCOR is a professional business valuation company in Edmonton that also offers its services to Toronto, Vancouver, Winnipeg, Saskatoon, and most areas within Canada. When a business is undergoing or preparing for a major event, our professional staff can provide the necessary data and insights.