MNP’S BUSINESS VALUATION SERVICES The Right Answer For Business Valuations

As a business owner, it is imperative to be aware of all the factors impacting your company, including what has value and what drives that value. A business valuation provides an independent assessment of the components of your business, indicating the future potential for your company and enabling you to develop strategic plans.

Levels of Valuation

A Chartered Business Valuator may provide one of three levels of service when preparing your valuation report and pricing the value of shares, assets or an interest in your business:

Comprehensive – A comprehensive valuations report provides a detailed, comprehensive and corroborated review and analysis of your business, its industry and all other relevant factors. Most appropriate for court hearings or public reporting, this report involves substantially greater independent analysis of a business, industry and relevant economic conditions than other levels and is most costly.

Estimate - An estimate valuation report is based on a limited review, analysis and corroboration of relevant information and generally set out in a less detailed valuation report. An estimate report is the most commonly provided level of service and is appropriate for most users.

Calculation - A calculation valuation report is based on minimal review and analysis and with little or no corroboration of relevant information. A calculation report is least costly but also has a lower level of assurance. It is more appropriate for internal management decisions requiring a broad range valuation advice.

Our specialists will work with you to determine the appropriate type of report needed for your specific situation.

MNP’s Valuation Process

MNP’s team considers three fundamental approaches to determine value, depending on industry, business specifics and information available:

• Income Approach: The income approach converts future benefits to a single, discounted amount based on the value indicated by current market expectations about those future amounts.

• Market Approach: The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

• Cost Approach: The cost approach postulates a prudent buyer would pay no more for an asset than the cost to replace its services. This is most useful for valuations of real estate companies, holding companies, heavy manufacturing and companies for which liquidation is likely.

Final Report

MNP’s valuation process is summarized in a written draft form and typically emailed to the client for review. We will gladly go through the report with you to make sure you understand the process and conclusions discussed in it.

ABOUT MNP

MNP is a leading national accounting, tax and business consulting firm in Canada. We proudly serve and respond to the needs of our clients in the public, private and not-for-profit sectors. Through partner-led engagements, we provide a collaborative, cost-effective approach to doing business and personalized strategies to help organizations succeed across the country and around the world.

Praxity AISBL is a global alliance of independent firms. Organised as an international not-for-profit entity under Belgium law, Praxity has its executive office in Epsom. Praxity – Global Alliance Limited is a not-for-profit company registered in England and Wales, limited by guarantee, and has its registered office in England. As an Alliance, Praxity does not practice the profession of public accountancy or provide audit, tax, consulting or other professional services of any type to third parties. The Alliance does not constitute a joint venture, partnership or network between participating firms. Because the Alliance firms are independent, Praxity does not guarantee the services or the quality of services provided by participating firms.

For more information on MNP’s diverse suite of Valuations Services, contact your local MNP advisor.

Visit us at MNP.ca

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