Business Valuations

Once a buy-sell provision is triggered in a unanimous shareholders agreement (USA), the valuation clauses in that agreement (which have usually been ignored for years) may lead to unintended financial outcomes for all parties. Careful consideration when preparing (or revising) the shareholder agreement can better reflect the shareholders’ intentions as well as provide useful instruction...

Navigating the world of business valuations can be a daunting task for many business owners. This complex domain is rife with common misconceptions and misunderstandings that may obscure the true value of a business. Whether it’s simplistic reliance on valuation “rules of thumb,” outdated valuation reports, or ill-considered estimates of partial ownership interests, these misconceptions...

NOTE: This article was written for and first appeared in the March 2022 issue of The Advocate, produced by the Saskatchewan Trial Lawyers Association The business sale process may not be something you assist with regularly, but sometimes a family law situation or a significant shareholder dispute may result in a business being marketed for...

I need to value my business, where do I start? Can the financial statements give me the number I need? The shares held in your business are likely one of the largest assets you have.  You may have spent years nurturing the business, building up its products and markets, developing its management team, and demonstrating...

What are minority discounts and when do they apply? A minority discounts reflects the premise that a partial ownership interest may be worth less than its proportional ownership in the entire business. A non-controlling shareholder does not have the same privileges and rights as a majority shareholder and a minority discount applies a reduction in...