Determining the value or price of a business is both an art and a science. It is a complex exercise that may be required in the context of:
The CBV Institute is the premiere governing body of Business Valuations in Canada. Members of the CBV institute adhere to a standard code of ethics and continuing education requirements.
The services provided include:
Most business planning focus on growing sales, profitability, client base or market share. Very few businesses incorporate value creation goals or objectives in their annual strategic plan. Often, entrepreneurs only think about creating value when it comes time to sell the business. Our mission is to start with the end in mind! We work very closely with entrepreneurs to demystify the key drivers that create and grow the value of a business. The CALM value drivers provide the basis for a value creation plan. They are as follows:
Growing the free Cash flow of a business;
Protecting and increasing the value and return of the business Assets;
Understanding and maximizing financial Leverage, while respecting the bank’s covenants;
Increasing the Multiple of free cash flow
By focusing on these value drivers, entrepreneurs can actively create and grow the value of their business. We work closely with the management team to achieve this by integrating these concepts in the annual strategic planning process. We start with a baseline indication of value as of today and an established goal to reach within a specific timeframe.
This is a marathon and not a sprint. It takes a team effort to accomplish this. The approach is based on extensive expertise in valuing businesses, coupled with practical hands-on operating experience in creating and growing the value of a business.