Business Valuation

At Business Finders Canada, we require a Business Market Valuation to determine the Probable Selling price before listing every business.

It’s entirely natural for business owners to place a higher value on their business than a potential buyer might. This often stems from years of personal investment and emotional attachment to the business. However, it’s crucial to recognize the importance of an accurate valuation, not just for setting a realistic selling price but also for making informed decisions across various scenarios—be it buying, selling, or liquidating a business.

When you’re in the position of buying or selling a business, emotional detachment becomes a critical factor. Setting aside personal feelings is essential for conducting an unbiased business valuation, which in turn establishes a realistic and competitive selling price.

The landscape of business valuation is diverse, offering multiple methodologies that can be employed. The suitability of each method can vary depending on several factors, such as the industry of the business, its size, and the specific circumstances of the sale. By choosing the most appropriate valuation method for your situation, you align your business strategy with market realities, thereby enhancing your negotiating position and increasing the likelihood of a successful transaction.

Why do we do a Business Valuation? 

Our business valuations are based on multiple factors including actual cash flow and hard assets. We then apply an industry specific formula to determine the market value. This is a 10-20-page comprehensive report showing the actual market value.

What Valuation Approach do we use?

Who Needs a Business Market Evaluation?

Probable Selling Price (PSP): An Opinion of Value 

PSP provides an exhaustive evaluation of your business’s intrinsic and market value.

Employs a blend of advanced methodologies, resulting in a valuation that surpasses market alternatives in precision.

Our PSP document stands as a more comprehensive and accurate valuation tool compared to existing market offerings.

To delve deeper into how the Probable Selling Price can serve as a strategic asset in your business sale, Learn More.

What Information Do We Require to Conduct a Business Valuation?

The more detailed information we receive will result in a more accurate estimate of value and assists in creating a better advertising/buyer package to sell the subject business faster.  Better information mitigates negative surprises from Buyer Due Diligence and more detailed add-back information means higher selling prices.