Chartered Business Valuation Services
Beacon Valuations is a Toronto based professional business services firm that provides a full suite of business valuations for business owners and managment.
Beacon Valuations focuses on supporting clients by providing various valuation services to privately-held companies across Canada and internationally. We conduct our Business Valuations under the Chartered Business Valuation Institute (CBV Institute) valuation standards, and the International Valuation Standards Council (IVSC) valuation standards.
Our Business Valuations are completed in the context of:
Our team of business valuation professionals provides business owners, C-suite executives, management and investors with a diverse range of business valuation and related services. Our multidisciplinary approach to business valuations allows us to match our client’s valuation requirements to our wide array of professional experiences to derive a value conclusion that is well supported and well thought out.
Beacon Valuations focuses on supporting clients by providing various business valuation services to privately-held companies across Canada and internationally.
We conduct our business valuations under the Chartered Business Valuation Institute (CBV Institute) valuation standards, and the International Valuation Standards Council (IVSC) valuation standards.
Our team of business valuation professionals provides business owners, C-suite executives, management and investors with a diverse range of business valuation and related services.
Our multidisciplinary approach to business valuations allows us to match our client’s business valuation requirements to our wide array of professional experiences to derive a value conclusion that is well supported and well thought out.
Business Valuations for transaction services provide an indication of the notional Fair Market Value of the business prior to market entry. They support negotiations identifying value drivers in order to arrive at a negotiated price of the planned transaction.
Financial Reporting business valuations derive the Fair Value of Intangible Assets and Goodwill to establish them for Purchase Price Allocations. Impairment testing is undertaken for the Goodwill and indefinite Life Intangible Assets to assess if a charge needs to be applied to reduce the carrying value to its deemed Fair Value.
Business Valuations prepared for Tax Purposes use Fair Market Value to affect an estate freeze of existing shares or a rollover of qualified assets for a corporate reorganization. Valuations are undertaken to provide support to the accountant’s application for tax disclosures.
Firms that actively manage their corporate strategy need to measure the success of the strategy’s implementation, a measurement which allows management to assess how the business value has changed from one period of time to another.
As part of litigation proceedings, a business valuation is undertaken to quantify value of the underlying asset in dispute. An independent business valuation provides support to the courts in understanding the complexity of the value of assets.
The Beacon Valuations team includes seasoned business valuation professionals who come from a diverse range of experience and business backgrounds. Our valuators join us from accounting, real estate, corporate, and legal industries.
At Beacon Valuations, we believe that there are better, more efficient ways of serving our client’s time and resources. We employ the latest technology in all areas related to confidentiality, valuations, marketing, and financial disclosure.
We utilize sophisticated quantitative methods, advanced algorithms combined with historical market transaction information, and dozens of data touchpoints to assess the sellability of a business and its value.
Confidentiality is at the heart of each of our business valuation mandates and every step of our process. We use secure and encrypted data rooms to store our client’s financial information.
The team at Beacon has completed business valuations in Canada, United States, Europe, Africa, Asia and the Middle East. We provide business valuation services to global clients through remote services or on site as required.
We employ research and market data methodologies that allow us to generate a well supported business valuation based on the latest market data and macro economic conditions.
We have assisted clients in a wide range of industries and sectors with revenues ranging from 1 million to over 100 million.
We utilize sophisticated quantitative methods that weigh multiple data points and market variables to assess a business’s value and determine its worth.
Beacon Valuations uses real time market data in its methodology which results in business valuation estimates that accurately match true market conditions.
There are various situations when you may need a business valuator to assess your business.
We provide professional business valuations for the following purposes:
We provide a business valuation assessment as part of our M&A services.
Business valuation is essential to mergers, acquisitions and divestitures. It helps a valuator advise on the timing of a sale, price expectations, and more.
We provide a business valuation assessment for initial Purchase Price Allocation, which would include Goodwill and Identifiable Intangible Assets, as well as annual Goodwill impairment reviews.
We provide a business valuation assessment for Management Internal monitoring of strategy execution and its resultant value enhancement to the organization.
We provide a business valuation assessment for Quantification of Damages for Business Interruption issues.
We appraise businesses for commercial litigation to aid those involved in any dispute.
Including expropriation for determining the market value of a business plays an essential role in any expropriation process.
When a business owner is looking to buy out a shareholder, a business appraisal can help a buyer identify the appropriate costs.
A management buyout occurs when a business’s management team buys the company’s assets and operations. A business appraisal helps a team to identify the value of a business’s assets and operations.
We provide business valuation services and assist with oppression or dissent remedies under the relevant federal/provincial Business Corporations Acts.
We prepare business valuations for tax purposes to streamline income tax processes and estate planning.
We also offer business appraisal services for corporate reorganizations to help taxpayers redirect funds to a business. We can provide appraisal services in the case of an estate freeze or section 85 rollovers
A business valuation is essential for employees looking to invest in businesses offering ESOP.
We appraise businesses to advise on how to reorganize the company for maximum profit.
Valuation is common when a business is under financial distress or looking to optimize its operations or performance.
Beacon valuates businesses to identify the value of a business’s interests, determine net family property, and generate income reports for support purposes.
We are capable of issuing business valuation reports under the following standards, as required by our clients and the purpose of the work.
A Calculation Valuation Report is the lowest level of assurance under the CBV Institute standards spine the work is limited in scope and independent validation of data. This type of report is typically only used for purposes that are not litigious and have a low level of required assurance. When considering levels of assurance related to accountant-prepared financial reports, this type of report is similar to Compilation Engagement Reports (previously known as Notice to Readers).
An Estimate Valuation Report has a wider and deeper scope of work than a Calculation Valuation Report, but there is still a limited level of independent validation of data. This type of report is typically used for transaction services and engagements where a higher level of assurance is required. When considering levels of assurance related to accountant-prepared financial reports, this type of report is similar to Review Engagements.
A Comprehensive Valuation Report is the most detailed report under the CBV Institute standards, and this report requires independent validation of the material aspects of the valuation and the scope of work is the widest of the valuation reports. This type of report is typically used for litigation support purposes. When considering levels of assurance related to accountant-prepared financial reports, this type of report is similar to an Audit.
Under the IVSC standards, we prepare both the Valuation Report and the Valuation Review Reports.
There are no specific standards for various levels of assurance in IVSC Valuation Reports. The standards simply state that the depth of coverage must meet the needs of the purpose of the report.
We are capable of issuing valuation reports under the following standards, as required by our clients and the purpose of the work.
For all Chartered Business Valuations, we issue our reports under the Canadian Institute of Chartered Business Valuators (CICBV) and International Valuation Standards (IVS).
For our Broker Opinion of Value reports we issue our reports under the practice standards of the Real Estate and Business Brokers Act, 2002 Ontario Regulation 580/05
Are you thinking about buying or selling a business? Or are you a business owner trying to determine how much your business is worth?
Before even thinking about buying or selling a business, it’s essential to have a professionally certified business valuation done. Having your business appraised will help you know what you are buying and help you come up with a fair price point for your business.
A Chartered Business Valuator (CBV) designation is the premier credential for professional business valuators in Canada. CBVs are financial professionals who hold this designation granted by The Canadian Institute of Chartered Business Valuators (CICBV). They are nationally recognized as CBVs quantify the worth of all, or part, of a business or its securities. They have has the ability to determine the value of tangible and intangible assets, including brand and intellectual property, and then explain their rationale in an easy to understand manner.
The opinions of CBVs are respected and recognized by the courts of Canada in shareholder, partnership, securities, intellectual property and marital disputes, damage quantification, insurance losses, personal injury claims, patent infringement and breach of contract cases.
CBVs provide assistance in a number of areas including:
The valuation of a business is a complex undertaking that requires specialized knowledge and abilities. The essential point to keep in mind is that value is determined by a complicated set of factors. For this reason, it is important to work with a valuation professional such as a Chartered Business Valuator (CBV) who is a valuation expert providing business valuation expertise in the areas of compliance, disputes and corporate finance, and skilled in selecting and applying the appropriate valuation methodology.
Very few individuals’ actually performing business valuations in the Middle East have earned a professional designation from a recognized professional organization certifying business appraisers. Clients have historically, and still do, consider accountants as the competent requisite for valuing businesses.
When choosing a valuator, consider the credentials of the consultants upon which you will rely, including the practice standards to which they are bound.
Your business’s key value drivers are profit, management and employee base, dependence, and longevity. Learn more about these factors that valuators look at, as they directly indicate your business’s value:
Through their comprehensive educational program and practical experience requirements, CBVs are specially trained to deal with the intricacies that can arise when valuing any type of business.
CBVs also have access to continuing education through regional workshops and national conferences that address current and evolving industry topics. Many accountants also have their CBV designation. A general distinction between the two professions is that CAs look at the past to create financial statements. CBVs look to the future to determine what is most likely to happen and place a value on that.
Those engaging a CBV benefit by working with a professional who is a member of a recognized national body, the CICBV. The CICBV has firm Standards of Practice that help to ensure the quality and consistency of the work performed by CBVs across Canada, as well as a Code of Ethics by which all CBVs must abide. The standards of the CICBV fall within those standards of the International Valuation Standards Committee (IVSC).
CBVs are often engaged to act as an independent expert or assume an advisory role. CBVs also work in conjunction with other professionals such as lawyers, accountants and tax specialists.
Many factors can affect a business’s evaluation. Most people just care about sales and profit margins, but there is a lot more involved.
There is no one-size-fits-all process for valuing a business, as every industry is different. Our professional business evaluators look at many other factors, including (but not limited to):
Putting together a business valuation is a detailed and arduous task. If you are considering buying or selling a business, it is in your best interest to have your business appraised by a business valuation firm like Beacon Valuations.
Business Valuation is as much art as science. Yet business valuation is also a highly technical field. The ability to judge which valuation method is best suited to a company’s needs and apply it to get an accurate picture of value requires experience and skill. Relying on a value determined by someone who doesn’t have this expertise can lead to unpleasant surprises. Get to know the basics of what goes into a good valuation report so you can make well informed decisions about your valuation needs. Independence is another important criterion.