Business Valuation & Appraisals
Discover the true worth of your enterprise. We provide defensible, independent business valuations for M&A, tax reorganizations, shareholder disputes, and succession planning.
Your Business is Your Biggest Asset. Do You Know What It's Worth?
A business valuation is not a guess, and it's not simply multiplying your revenue by an arbitrary industry standard. It is a rigorous financial and economic analysis that holds up under the intense scrutiny of the CRA, opposing legal counsel, and sophisticated buyers.
At Teixeira Accounting, our valuation reports go beyond the balance sheet. We normalize your earnings, analyze your intangible assets (like brand equity and customer lists), and apply the most appropriate valuation methodologies to arrive at a defensible Fair Market Value (FMV).
When is a Formal Valuation Required?
A formal Chartered Professional Accountant valuation is often legally mandated in specific scenarios.
Mergers & Acquisitions
Whether you are selling your life's work or acquiring a competitor, you need an objective baseline. We help sellers maximize their asking price and protect buyers from overpaying.
Tax Reorganizations
When executing an Estate Freeze (Section 86) or transferring assets to a Holding Company (Section 85), the CRA requires you to transact at Fair Market Value. An undervalued transfer can trigger massive tax penalties.
Shareholder Disputes
When partners disagree or want to exit the business, a "shotgun clause" is often triggered. An independent valuation ensures a fair buyout price for departing shareholders.
Matrimonial Separation
In a divorce, business interests are considered family property. We provide objective valuations that stand up in family court to ensure an equitable division of assets.
Succession Planning
Passing the business to the next generation requires establishing a current value to calculate the future tax liability of the estate and to equalize inheritances among children.
Employee Stock Options
If you are issuing shares to key employees to retain top talent, you must determine the strike price based on the current FMV of the private company.
Our Valuation Methodologies
There is no single formula for valuing a business. The correct approach depends entirely on the nature of the company, its industry, and its stage of growth. We utilize three primary approaches recognized by the Canadian Institute of Chartered Business Valuators (CICBV).
Income Approach
Used for profitable, operating companies. We use Capitalized Cash Flows or Discounted Cash Flow (DCF) models to determine the present value of the business's future expected earnings, factoring in the specific risk profile of the company.
Market Approach
We compare your business to recent transactions of similar private companies or public market equivalents. We apply industry-specific EBITDA multiples, adjusting for size, liquidity, and market conditions.
Asset Approach
Typically used for holding companies, real estate entities, or businesses facing liquidation. We adjust the book value of all tangible and intangible assets and liabilities to their current Fair Market Value.
The Normalization Process
Private company financial statements are often optimized to minimize taxes, not to show maximum profitability. We "normalize" EBITDA by adding back:
- Above-market salaries paid to owners or family members
- Discretionary personal expenses run through the business
- One-time, non-recurring professional fees or legal costs
- Excess rent paid to a related holding company
Why it matters:
If we identify $100,000 in add-backs, and your industry multiple is 5x, we just increased the valuation of your business by $500,000.
Business Valuation Estimator
Estimate your company's enterprise value based on normalized EBITDA.
Excess owner salaries, personal vehicle, one-time expenses.
Base EBITDA
$375,000
Normalized EBITDA
$525,000
+$150,000 value unlockedEstimated Enterprise Value
$0
*This is a simplified estimate. Formal valuations require rigorous analysis of risk profiles, working capital, and market comparables.
This tool is for general information only and does not replace professional tax or accounting advice.
Why Choose Teixeira Accounting?
At Teixeira Accounting Firm Inc., we don't just record history; we write your financial future. Most accounting firms are reactive—they wait for you to bring them problems. We are proactive architects of your wealth and business growth.
Whether you're a scaling enterprise or a high-net-worth individual, we provide the strategic oversight, tax optimization, and bulletproof compliance you need to operate with absolute confidence.
The Teixeira Advantage
Proactive Tax Strategy
We don't just file your taxes; we actively look for ways to reduce your tax burden year-round.
Bulletproof Compliance
Our rigorous quality control ensures your filings are accurate, minimizing audit risk.
Dedicated Advisory
You get a dedicated partner who understands your business deeply, not just a once-a-year tax preparer.
Valuation FAQs
Need an Independent Valuation?
Ensure your transaction is fair, compliant, and defensible. Speak with our valuation experts today.