Step 3  Evaluate Your Business
Once you've chosen a successor, it's crucial to establish the selling price and complete the financial planning process. To do so, you need an objective valuation of your company.
What should you do during this step?
When it's time to determine how much your company is worth, you can use one of the following three approaches:
- valuation based on asset value
- valuation based on the selling price of comparable companies
- valuation based on cash flow.
Each approach offers a specific set of advantages. Your transfer manager can advise you on which is best for you.
What resources are required?
The support of a business valuator and an accountant can be a major plus during this important step. Your transfer manager will be pleased to recommend such specialists and make referrals. Like all the experts he suggests, they will have been evaluated by National Bank based on their expertise and customer satisfaction ratings.
Next step...
|
