CANADEST uses up to 13 different methods to determine the Fair Market Value (FMV) of a Business.
Of these methods, CANADEST will choose related methods that are more specific to other depending on the sector of business operations to get the best Business Valuation they can have.
In the Business Valuation process, a Certified Business Broker will proceed to the normalization of the financial statements of the last 5 years according to a uniform procedure and according to recognized standards accepted by IBBA (International Business Brokers Association).
This approach aims to show EBITDA (earnings before interest, taxes, depreciation and amortization) to demonstrate the company’s ability to repay a loan if the buyer needs to borrow or wants to pay himself a salaries or/and get a return on his investment. This approach is crucial in the process of Business Valuation to ascertain the profitability of the Business put on the market. Therefore, the buyer should consult a Business Broker before to make an acquisition of a business to understand all the implication.
In the overall of the Business Valuation, there are also Real Estate involved, Land, Machinery & Equipment, Inventory and Goodwill to be taken into account as a whole, to determine the price of the Business and before to put it on the market.