Business Appraisal Alberta
Proper evaluations are a detailed process:
Evaluating a business is not a simple process, nor can an exact result be achieved. The process provides a theoretical value that will give a close estimate of the fair market value of the business. Probabilities of asset value are compared to market demand and actualities.
Evaluations should only be handled by qualified experienced business consultants. Uniqueness of each business always effects the final estimate. A fair market value conclusion will be reached after such things as market strength, growth curve, economic cycle resistance and break even ratios are concluded.
Business appraisals must not be considered absolute but a starting point to reflect upon. Even by taking multiples of the net profit using the EBITA formula are not absolute. The actual value of the business is the price at which the buyer and the seller finally agree to contract a deal.
The following list is a breakdown of the
various information needed to assess the value
– Good will value
* The training process
* Carry back mortgage
* Minor retention of shares
* Share sale vs Asset sale
* Lease transfer vs New Lease
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Business Resource Canada