Business valuation
A valuation tells you what a buyer in British Columbia would reasonably pay for your company today, and why. We build it from your financial statements, normalise the earnings and apply three methods, explaining every adjustment in plain language. Owners use it to plan an exit, settle a buyout or back a financing application. Buyers use it to test an asking price.
What you leave with
You hold a written, defensible number with the reasoning behind it, ready to show a buyer, partner, lender or accountant.
Who it is for
- Owners in BC thinking about selling within the next few years
- Partners who need a fair price for a buyout or a new shareholder
- Buyers who want an independent check on an asking price
What we deliver
- Normalised EBITDA and seller's discretionary earnings, every add-back explained
- Discounted cash flow, market multiple and asset-based values reconciled into one range
- A 25 to 35 page written report for buyers, lenders and CPAs
- The value drivers and value gaps we found in your business
- A review session with Ali on the number and what would move it
How it runs
01Financials in
You send recent statements, tax filings and a list of owner expenses, under NDA if you wish.
02Normalise
We rebuild the earnings a buyer would actually receive, removing one-time items and owner perks.
03Three methods
We value the company by discounted cash flow, market multiples and asset value, then reconcile.
04Report and review
You receive the written report and a review session with Ali on what would change the number.
Engagement and fees
The fee is $3,500 flat through BizSell.ca, with the review by video, phone or in person in Vancouver. Every engagement is scoped after a call and confirmed in writing. See consultations and fees.
Why a valuation comes before everything else
Almost every decision on this site starts with a number. You cannot plan an exit, price a partner buyout, approach a lender or compare an offer without knowing what the business is worth to a reasonable buyer. Owners who skip this step anchor on a figure a friend mentioned or on what they need for retirement, and both lead to a listing that sits unsold. A valuation replaces guesswork with a documented range, so every conversation that follows is grounded in the same facts.
What the three methods tell you
Discounted cash flow looks forward and asks what your future earnings are worth today, which rewards stable, predictable companies. Market multiples look sideways at what comparable BC businesses have changed hands for, which is how most buyers actually think. The asset-based method looks at what the equipment, inventory and receivables would fetch, and it sets the floor. When the three agree, the range is tight. When they disagree, the gap itself says something useful about risk, growth or an asset-heavy balance sheet.
Normalised earnings decide the outcome
Buyers do not pay for the profit on your tax return. They pay for the cash the business will produce for them. Normalising means removing one-time events, personal expenses and above-market family salaries, then adding back a realistic wage for the work the owner does. For smaller companies we present seller's discretionary earnings, which includes the owner's full compensation. For larger companies we present normalised EBITDA. Getting this right, and documenting it, is where most of the value in a report lives.
Industries where we run this most
Questions about this service
How is a $3,500 valuation different from a free broker estimate?
A free estimate is a marketing tool designed to win a listing, and it is usually optimistic. Our report is independent, uses three methods, lists every adjustment and is written to survive a buyer's accountant.
What documents do I need to send?
Recent years of financial statements, corporate tax filings, a current balance sheet, aged receivables and payables, a list of owner expenses paid by the business and any leases or contracts that affect earnings.
Will a lender accept the valuation?
Lenders in BC commonly ask for a professional valuation when financing an acquisition, and our report is written for that purpose. For tax reorganisations or disputes, your CPA or lawyer may require a formal valuation from a credentialed valuator.
Can you value a business I am thinking of buying?
Yes. A buy-side valuation uses the seller's financials and our own normalisation, so you see the earnings without the seller's add-backs. It is often the cheapest protection against overpaying for a business.
Start with a confidential conversation.
Tell Ali where the business is and what you want to happen next. You leave with a straight read on value, timing and the two or three moves that matter, whether or not we work together.