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Publications

Valuations FAQ – The Beginning

In our previous article “What’s a CBV (Chartered Business Valuator)”, we explored what a CBV does and the types of engagements in which their expertise may be sought. In this article, we will explore the beginning of a valuation engagement, and the common questions that clients often have.

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What’s a CBV (Chartered Business Valuator)?

One of the most famous lines from William Shakespeare’s Romeo and Juliet questions the meaningfulness of names, and given definitions, as follows:

“What’s in a name? That which we call a rose by any other name would smell as sweet.”

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Shareholders and Disputes – Through a Valuator’s Eyes

Some of the primary reasons that the services of a business valuator are required involve changes related to shareholders. In some cases, a successful business may add one or more shareholders to strengthen its core operations or reward performance.

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Enterprise Value vs. Equity Value

In a prior article we explained the basics of valuation multiples, and how they are used to calculate the fair market value of a business.  In this article, we will explain the differences between enterprise value and equity value, and in particular, how these differences impact privately-owned businesses.

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U.S. Vacation Property and The Unsuspecting U.S. Estate Tax

Are you considering purchasing or do you own a U.S. vacation property? Have you considered the potential U.S. estate tax that may be levied on your death? If you haven’t thought about U.S. estate taxes, you are not alone. Many Canadians looking to get into the foreign housing market do not consider the tax efficient ownership structure prior to making the purchase. Unfortunately, this could lead to unexpected taxes and liquidity problems for your estate.

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Valuation Multiples – A Primer

What is a multiple?

Have you ever wondered what stock traders mean in the movies when they say “what’s it trading at?”  Are you a tad confused when you hear “it’s worth about 4-times EBITDA”?  If you are, you are not alone, and the truth is that the answer is not as complicated as one may think.

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Bill C-208: Much Needed Flexibility on Intergenerational Transfer of Business

Overview of Intergenerational Transfers

When transferring a business to the next generation, the most commonly used tax strategy is to implement an estate freeze. An estate freeze will allow the business owner to transfer the business without triggering income taxes. Alternatively, business owners may choose to sell their business to their children or other family members to utilize their lifetime capital gains exemption (“LCGE”) – approximately $892K in tax-free capital gains. Care must be taken in selling a business to family members as the Income Tax Act contains “surplus stripping” rules which prevents the selling parties from extracting cash on such sales.

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