CDC Consulting Services Inc Appraisals Alberta

CDC Business Valuation Services

Valuation services provided may include a Calculation Valuation Report, Estimate Valuation Report or a Comprehensive Valuation Report. These reports are prepared in accordance with the standards of the Canadian Institute of Chartered Business Valuators, with varying levels of assurance that is customized to best serve your needs.

Business Valuation Frequently Asked Questions

Q: How do you value a business?
Q: Who does my valuation report?
Q: Why are most traditional valuations flawed?
Q: How can I profit from having a business valued?

Q: How do you value a business?
A: Valuing a private business is not an exact science. To do it accurately requires experience, industry knowledge and the ability to analyze and closely examine all the factors involved.

The value can be determined by many factors including: grow potential, potential economies of scale, sector trends and activity, cash flow, sustainable profit, asset value, financial history, location, competition, customer base, ongoing management, desirability and the economy.

There are a number of common valuation methods. It is possible to use one or a combination of the following:

Multiple of earnings - mainly used for businesses with a record of sustainable profits.
Discounted cashflow - mainly used for large cash-producing businesses.
Asset value - used for businesses with a large tangible asset base such as property or plant.
Entry cost method - comparing the entry cost alongside the value of the business.
Industry precedent - some industries have their own unique valuation methods based on sector criteria.

Q: Who does my valuation report?
A: All valuations are done by a trained and qualified evaluator. All valuation data is collected, analysed, collated and put together by hand, not randomly spat out by a computer.

Q: Why are most traditional valuations flawed?
A: Typically, traditional valuations only take into consideration the pure financial aspects of your business such as turnover, profit and balance sheet. While these are important, you cannot simply ignore other factors such as: industry standard valuation models, previous sector deal precedent, availability of comparative sector opportunities and many more. Each of these can have a dramatic affect on the value of your business.

For example, you and your neighbors’ houses are for sale at the same time. You have a double garage, swimming pool or loft conversion while they don’t. It is likely your house will be worth more. Also, if three or four houses in the same street are for sale at the same time, this too will affect the value of your house. It is the same with a business. This ensures your business’s value is accurate, reliable and informative.

Understanding how your business is valued can help you create a strategic plan enabling you to create greater value.

Q: How can I profit from having a business valued?

A: This will depend on the reason for a valuation. Maybe you want to settle a dispute? Perhaps you’re just curious or looking for peace of mind? Understanding how your business is valued can help you concentrate on the areas where you can add extra value. Often, simple, easily overlooked things can be identified, amended or improved to make a major difference.

Did you know...

CDC Consulting Services Inc network consists of over 50 appraisers and 10 appraisal firms.

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Residential Appraisals Commercial Appraisals Assessment Appeals Insurance Appraisals Agricultural Appraisals Personal Property Appraisals Business Valuation Reserve Fund Green Building	CDC Business Valuation Services Valuation services provided may include a Calculation Valuation Report, Estimate Valuation Report or a Comprehensive Valuation Report. These reports are prepared in accordance with the standards of the Canadian Institute of Chartered Business Valuators, with varying levels of assurance that is customized to best serve your needs. Business Valuation Frequently Asked Questions Q: How do you value a business? Q: Who does my valuation report? Q: Why are most traditional valuations flawed? Q: How can I profit from having a business valued? Q: How do you value a business? A: Valuing a private business is not an exact science. To do it accurately requires experience, industry knowledge and the ability to analyze and closely examine all the factors involved. The value can be determined by many factors including: grow potential, potential economies of scale, sector trends and activity, cash flow, sustainable profit, asset value, financial history, location, competition, customer base, ongoing management, desirability and the economy. There are a number of common valuation methods. It is possible to use one or a combination of the following: Multiple of earnings - mainly used for businesses with a record of sustainable profits. Discounted cashflow - mainly used for large cash-producing businesses. Asset value - used for businesses with a large tangible asset base such as property or plant. Entry cost method - comparing the entry cost alongside the value of the business. Industry precedent - some industries have their own unique valuation methods based on sector criteria. Q: Who does my valuation report? A: All valuations are done by a trained and qualified evaluator. All valuation data is collected, analysed, collated and put together by hand, not randomly spat out by a computer. Q: Why are most traditional valuations flawed? A: Typically, traditional valuations only take into consideration the pure financial aspects of your business such as turnover, profit and balance sheet. While these are important, you cannot simply ignore other factors such as: industry standard valuation models, previous sector deal precedent, availability of comparative sector opportunities and many more. Each of these can have a dramatic affect on the value of your business. For example, you and your neighbors’ houses are for sale at the same time. You have a double garage, swimming pool or loft conversion while they don’t. It is likely your house will be worth more. Also, if three or four houses in the same street are for sale at the same time, this too will affect the value of your house. It is the same with a business. This ensures your business’s value is accurate, reliable and informative. Understanding how your business is valued can help you create a strategic plan enabling you to create greater value. Q: How can I profit from having a business valued? A: This will depend on the reason for a valuation. Maybe you want to settle a dispute? Perhaps you’re just curious or looking for peace of mind? Understanding how your business is valued can help you concentrate on the areas where you can add extra value. Often, simple, easily overlooked things can be identified, amended or improved to make a major difference. Did you know... CDC Consulting Services Inc network consists of over 50 appraisers and 10 appraisal firms.

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