Step 3 - Determining the business's value
As part of the business transfer process, it is essential that the value of a business be supported by an independent valuation.
Determining the market value of a business is an art form in itself. It requires the skills of a Chartered Business Valuator.
Objectives and actions
Use the services of a Chartered Business Valuator to set a realistic price.
This step helps you:
- set the selling price of your business
- know the real worth of the business you will pass on to heirs
- facilitate tax planning for the project and reduce tax penalties
- decide whether or not to transfer your business to your descendants
- reduce tensions among heirs
- support future negotiations with lenders
The Optimizing the value of the Business tool allows you to identify the features that enhance the value of your company, get a clear idea of its growth prospects and prioritize the means to reach them.
- Optimizing the value of the business - Business transferors (PDF, 40 KB)
- Optimizing the value of the business - Farm transferors (PDF, 41 KB)
The next step
See Useful links.