Our Services
Business Valuations for Corporate Reorganization
At Beacon Advisors, we provide independent valuations that support corporate reorganizations. Our valuations ensure compliance with tax and regulatory requirements while giving business owners clarity and confidence during major transitions.
Why Valuations Matter in Reorganizations
As businesses evolve, so do their structures. Growth, mergers, divestitures, financing, and succession often require owners to reorganize their companies. A corporate reorganization may involve creating new entities, merging subsidiaries, or changing ownership structures. These changes can unlock value, optimize tax efficiency, or prepare a company for future transactions.
Regulatory compliance
Tax authorities often require valuations to ensure fairness in reorganizations.
Fair treatment of stakeholders
Independent valuations prevent disputes between shareholders, lenders, or family members.
Strategic clarity
Valuations provide insight into whether the reorganization will enhance or diminish value.
Audit readiness
Defensible valuations reduce risk of auditor or regulatory challenges.
Future-proofing
A proper valuation sets the stage for smoother future transactions, financings, or exits.
Common Reorganization Scenarios
There are several common scenarios that require a formal valuation.
1. Mergers of Entities
Combining subsidiaries or affiliated businesses requires valuation of each entity.
2. Spin-offs and Divestitures
Carving out divisions or subsidiaries into new companies demands accurate valuations.
3. Amalgamations
Consolidating companies into a single entity for operational or tax purposes.
4. Capital Restructuring
Issuing new share classes, redeeming shares, or recapitalizing debt and equity.
5. Tax-driven Reorganizations
Valuations help resolve disagreements between employees and management.
6. Pre-Transaction Restructuring
Streamlining structures before sale or financing to maximize value.
Challenges Business Owners Face
Tax complexity
Reorganizations often overlap with evolving tax regulations.
Multiple stakeholders
Lenders, regulators, shareholders, and family members all require transparency.
Valuation disputes
Different stakeholders may have conflicting perspectives on value.
Operational disruption
Poorly executed reorganizations can distract management.
Audit risk
Inadequate valuations increase exposure to penalties or challenges.
Our Approach at Beacon Advisors
We deliver valuations that are rigorous, compliant, and practical.
Tax authority compliance
We prepare valuations that meet CRA, IRS, and cross-border requirements.
Fairness and neutrality
Independent valuations build trust among all parties.
Industry expertise
We benchmark valuations against relevant market data.
Tailored reporting
We provide both technical detail for auditors and practical summaries for management.
Strategic alignment
Our valuations support your broader restructuring goals.
Practical Applications for Business Owners
Merging subsidiaries
A holding company merges two divisions. Our valuation ensures fairness and compliance.
Spin-off of a non-core business
You separate a product line into a new company. Valuation sets a fair baseline for shareholders.
Capital restructuring
You issue preferred shares to family members for estate planning. Our valuation ensures tax compliance.
Pre-sale reorganization
You streamline ownership before selling to maximize value.
Family succession
Transferring ownership between family entities requires defensible valuations for tax and fairness.
Benefits of Professional Valuations in Reorganizations
Compliance
Satisfy tax and regulatory authorities.
Fairness
Treat all shareholders and stakeholders equitably.
Credibility
Gain trust with auditors, lenders, and regulators.
Efficiency
Reduce delays in restructuring by providing clear documentation.
Strategic advantage
Use valuations to shape optimal corporate structures.
1. Scoping Consultation
- Define reorganization objectives.
- Identify compliance requirements.
2. Data Collection
- Gather financials, ownership structures, and corporate documents.
3. Valuation Analysis
- Apply fair market value approaches to entities or divisions.
- Adjust for control premiums, minority interests, and liquidity.
4. Draft Report
- Provide initial findings for review by management and advisors.
5. Final Report Delivery
- Deliver a comprehensive, independent valuation.
- Support with board presentations or tax authority submissions.
Frequently Asked Questions
When is a valuation required in a reorganization?
Anytime shares or assets change hands between related parties, or structures are altered for tax purposes.
Do tax authorities require formal reports?
Yes. CRA and IRS require defensible, independent valuations.
Can reorganizations reduce my tax burden?
Yes, but only when supported by accurate valuations.
How often should I update valuations in long reorganizations?
Yes. Transparent, fair valuations build trust. Poorly done valuations can damage morale.
Can Beacon Advisors work with my accountants and lawyers?
Absolutely. We collaborate with your advisory team to ensure full compliance and alignment.
Why Business Owners Choose Beacon Advisors
Cross-border expertise
Offices in Miami, Toronto, Los Angeles, and Washington DC handle U.S. and Canadian reorganizations.
Trusted by tax advisors
Our valuations integrate seamlessly with accountants and legal counsel.
Audit-ready credibility
Our work is respected by auditors and regulators.
Mid-market focus
We specialize in private and mid-sized companies.
Strategic insight
We provide more than compliance — we help you make reorganizations value-enhancing.
Get in touch
Corporate reorganizations are opportunities to unlock value, but they also carry tax and compliance risks. With Beacon Advisors, you gain valuations that are accurate, defensible, and strategically aligned with your goals.