Although one of the first things we ask for when preparing a business valuation is the company’s previous five years of financial statements, this isn’t the only information we rely on. The concept of business valuation is forward-looking. For stable businesses, past earnings are generally indicative of expectations for future earnings. However, in situations where … Continue reading »
There are several steps involved in selling a business and the process can be fairly lengthy (potentially as long as a year or more) depending upon the readiness of the business for sale, the number of potential buyers, the availability of financing, the seller’s price expectations and the seller’s commitment to the process. We have … Continue reading »
We’ve had some big news for our client JRT Nurseries which operates a plant nursery out of Abbotsford, BC and Lynden, WA. JRT was just awarded $35 million after a five-week jury trial held in the State of Oregon. JRT Nurseries commenced an action against Sun Gro Horticulture and Wilbur-Ellis for supplying a fertilizer that … Continue reading »
One issue that tends to come up when preparing a business valuation for family law purposes is the use of company funds to pay personal expenses for one or both spouses. Although this sounds like it can be detrimental to the other spouse, it should not necessarily be cause for great concern if the expenses … Continue reading »
One of the insurance products available to business owners is a peak season endorsement – usually on inventory. The peak season endorsement allows for an automatic increase of the insured value as stated on the declaration page (e.g. 25% over the amount insured). For example, a company with inventory insurance of $500,000 may be eligible … Continue reading »
Occasionally during the course of preparing a business valuation we are told the financial statements provided may not be reliable…now what? The worst case scenario is that we have wasted our time and your money to produce something that may be inaccurate. The best case is that we can make a few adjustments and salvage … Continue reading »
There are many factors that determine the right time to sell a business. Certainly external economic factors come into play – the stage of the economic cycle, interest rates, alternative investment options, industry trends, etc. can impact the timing of a successful business sale. Unfortunately, these external factors are beyond your control. What you can … Continue reading »
So, you have decided that you need a business valuation but don’t know what to do next. If you are like most people, you want to get an idea of the potential costs involved. Usually we like to get a bit of information about your company before we can give you a fee quote – … Continue reading »
When dealing with business interruption insurance, one of the hardest things we sometimes have to do is inform a business owner that they are underinsured…usually after a particular incident has left them either temporarily or permanently shut down. Unfortunately, this is more common than you might think. Many business owner/managers buy an insurance policy and … Continue reading »
One of the reasons we enjoy valuing businesses is the opportunity to see ‘behind the scenes’ of many different businesses operating across a variety of industries – including companies whose products or services we use. The history behind the conception and growth of the company are often interesting and entertaining. We find that most business … Continue reading »