META-KNOWLEDGE SHARE

APPRAISAL & VALUATION

“The greatest gift of all is the power to estimate things at their true worth.”

Most business owners today often require an independent valuation of either the shares or assets of their business. Complex Laws, new types of securities, and innovative ways of structuring organization can complicate the simple question: “How much is it really worth?”

There are many instances when an objective and accurate assessment of a company’s value is required.

Some say a company is worth exactly what another person is willing to pay. Or is it? How about future value? Or earnings and income? Or goodwill? How do you arrive at that magic number, fairly? More importantly,who best to provide that assessment? An accountant? A lawyer ? The neighbour who sold their business? Who can provide that certainty?

With RICVS on your side and having our firms VALUATION professionals as part of your team, you are provided with a degree of comfort “to be certain”

“Valuation is an art and not an exact science.”

RICVS VALUATION team has Senior Accredited Appraisers (ASA.BVs) and Chartered Business Valuators (CBV) with the experience and knowledge to deliver business valuation assessments that are based on approved professional standards. These business valuation assessments may be used for circumstances that include buy/sell agreements, shareholders and partner disputes, determination of damages in third-party liability matters, dissenting shareholder actions and remedies, divorce settlements, personal injury / economic loss of income claims, estate and succession/exit planning, initial public offerings (IPO) and pricing negotiation and fairness opinion matters.

Welcome to a world of certainty

There are three sides to every valuation.

YOUR VALUE, THEIR VALUE AND FAIR VALUE

For every scenario, buyers, sellers and facilitators can find the needed reassurance and degree of certainty with RICVS VALUATION professionals. They have ASAs that are experts with a specialized knowledge of businesses and their value and can quantify the worth of all, or part, of a business.

We also provide business valuation services that can be used as management or benchmarking tools to aid in strategic decisions such as the need to invest additional time and capital, sell or even close a business. We offer guidance you can trust and rely on. As the advisor of choice for a growing number of private and public companies, our tailored offerings provide complete and objective valuation opinions from independent board advice, investment and transactional counsel to accounting, tax planning and financial guidance, litigation support and more.

Valuation is required in the following situations:

  • Mergers and Acquisitions (M&A)
  • Business Interruption Claims
  • Sales and Divestitures
  • Claim Settlement or litigation Support
  • Buy/ Sell Agreements
  • Shareholder Disputes
  • Going Public
  • Continued Investment Concerns.

Business Valuators also appear as independent experts when Appraisal and Arbitration matters arise before the Court, ministries and other regulatory bodies. We can determine the value of brand and intellectual property, as well as provide damage quantification, due diligence and transactional support for financial litigation or corporate finance and transaction-based activities

USING AND CROSS-EXAMINING THE VALUATION REPORT –types of Report and its Purpose

ADVISORY

Corporate Finance - Fund Raising

RICVS Provides consultation in Equity Debt and Alternative Ethical Financing.

At the core of every transaction are the funds required to conclude the deal. RICVS works with corporate finance professionals who have worked in lending institutions and banks, private equity firms and family wealth offices.

RICVS corporate finance clients enhance their financing request package by including a credit structure that is in line with the anticipated bank’s BRR (Business Risk Rating), resulting in accelerated funding time lines, increased fee income, greater client engagement, increased client satisfaction, and added credibility with the banks and alternative lenders.

RICVS can assist to negotiate collateral security, such as personal and cross guarantees, lien on personal assets, financial covenants, reporting quality and frequency, terms and conditions of payment. RICVS’s corporate finance team know what is acceptable to the bank and fund managers at private equity firms.

  • Due Diligence from Start to Finish
  • Systematic Financial Modelling
  • Acquisition Growth Exit Strategy
  • Business Value Creation and evaluation of Economic Value Added (EVA).

  • Maximizing shareholder value is inevitably the destination. Let RICVS VALUATION, be your choice in providing Valuation Services and guide you through the process very quickly formulating indicative value to firming up numbers based on due diligence findings to negotiating the final pricing leading to successful closing. When value matters we bring certainty with well documented analysis and valuation opinions.

    “Price is what you pay, value is what you get”

    One of Warren Buffett’s favorite old admonitions reveals that price and value are not always the same. While the intrinsic value of a business is admittedly a somewhat imprecise estimate that depends on assumptions, it nevertheless stays within a much narrower range if a proper valuation is performed which guides transaction team.

    Understand the value of your business – choose an expert who knows what makes a business valuable now and in the future and whether you are getting the value in relation to the price.

    And because value is not just an arbitrary number, ASAs provide an in-depth analysis of their findings in an easy-to-comprehend manner. So when you are looking for certainty in a transition wouldn’t you want a RICVS professionals on your side?

  • RICVS Risk Advisory and Compliance consulting supports entities in providing assurance to respective Boards/Audit & Risk Committees/Management on the risk management, internal controls, ethics & compliance, and corporate governance activities of a given entity. The Consulting Firm also supports entities by providing necessary business advisory consultancies in areas such as Strategy, Organization Business Processes, Policies and Procedures, Business Governance, etc.

    Risk Advisory, Investigation & Financial Forensic Services

    Conduct Risk Assessments and prepare Risk Registers, risk matrices, Risk tolerance levels, and risk management advisories. Prepare Risk Based Audit Plans for all auditable entities, and support entity management to obtain approval from respective Boards/ Audit Committees, annually.

    Conduct Internal Audits as per Audit Plans. Following business aspects are audited – Shareholder Matters; Strategy; Financial; Operational; Business Process; Project Management; Compliance; & Manage Outsourced Audits

    Support entity management in conducting periodic follow up of all Significant Audit Issues & Risk Management Matters with respective Company Management. and Quarterly Reporting to Management/Audit & Risk Committees/Board.

    Facilitate coordination with Statutory Auditors / External Regulators with respect to the internal control environment within the entity.

  • Introduce governance / ethics codes & frameworks, delegation authorities, policies & procedures for compliance across the entity – through ‘development, awareness, assessment, and training’ programs. Conduct Board Evaluations, IPO Readiness Reviews & Director Development Programs, and support Boards in establishing the nomination, governance, remuneration and executive committees.
  • Set out principles & values of good governance / ethical business management that employees should apply in their day to day professional behavior, hold the trust & respect of colleagues, shareholders, customers and society; and promote corporate values through ‘governance / ethics assessments and compliance’ activities.
  • Support the Board / Governance & Ethics Committees in reviewing and recommending to the Management the actions with regard to various policies, procedures and programs in order to maintain an ethical and a good governance business environment and to address day-to-day compliance matters.
  • Be available to staff & entity associates to answer all queries & complaints in accordance with Code of Governance / Ethics Procedures (including set-up/managing the external/independent Ethics Hotline/Helplines; governance advisories, web portals, etc.)Support entity in periodically reporting status of compliance activities to the entity Board & Management.

FORENSIC & LITIGATION SUPPORT

  • Shareholder, partner, family disputes, minority shareholder oppression/ dissent remedy
  • Buy/sell agreements
  • Business interruption
  • Expropriation
  • Loss of income/ property
  • Personal injury
  • Family law matters (equalization of family property)
  • Expert witness testimony (trial, mediation, arbitration)
  • Claim settlement
  • Fraud Investigation
  • Insurance Companies
  • Independent Adjustment Firms
  • Lawyers
  • Government and law enforcement agencies
  • Businesses of all sizes – from multi-national corporations to small businesses

First Essential Steps –RICVS Approach

  • Business Assessment
    • Preliminary Negotiations
      • Detailed Investigation – Buy-side or Sell-side Advisory
        • Objective Valuation
          • Structuring – Tax, Corporate Finance
            • Final Negotiations.

The above steps show RICVSs tried and tested approach to making a successful privately negotiated acquisition or sale. A detailed investigation, often in itself thought of as due diligence, is an important part of this approach whether you are on the buy or the sell side. Here we briefly outline how we take this approach from preliminary investigations through to getting the best deal whether you want to BUY, SELL or LIST.

Today, placing a fair market value on a business is essential for business owners, managers, buyer’s sellers and investment bankers. Valuation of shares of a company is not a new problem. It has been with us long as the corporate form itself.

Often the investor (buyer) and/or seller commence negotiations for the acquisition/sale of a business with an unrealistic price in mind. This price is frequently based on emotional considerations, sometimes dangerously supported only by a cursory review of the financial statements. Chartered Business Valuators play a major role is providing an informed, independent an objective range of values.

GET THE BEST DEAL – BE AN INFORMED PLAYER – BE CERTAIN

Unique attributes that arise in shareholder disputes for non-public companies from the attorney and expert perspective. It will include difficulties faced in obtaining discovery when representing minority owners, impact of negative inferences, valuation issues/limitations under state statutes/case law, and issues faced in the complaint and counter-claims process

Prompt, accurate, and efficient settlement requires an in-depth knowledge of the legal system, insurance forms and applicable legislation, plus discretion, persistence and insight born of experience. RICVS forensic accountants can assist with all types of insurance claims and litigation and fraud support. We deliver independent, objective analyses and clear, concise reporting that goes beyond mere numbers to reveal the true story. We also offer customized corporate training seminars to empower your team.

Our clients consist of major insurance companies, independent insurance adjusters, law firms, corporations, business owners and individuals. We are often retained by lawyers, insurance companies and the business community to provide an assessment of economic damages and to prepare an independent expert’s report suitable for use at settlement meetings, mediations, arbitrations or in court.

We are also retained to review and provide comments on another expert’s report in order to assist counsel in preparing for cross examination, or to file a responding expert report, which may or may not contain an independent assessment of damages. If required, we would appear as expert witnesses before the trier of fact. As expert witnesses, we are called upon to testify by providing independent expert evidence to assist the trier of fact in understanding the accounting and/or valuation issues in dispute.

We utilize a team approach involving the solicitor, client and other experts to ensure that the engagement is run in a cost effective and timely manner.

Services offered include:

  • Commercial litigation
  • Shareholder disputes
  • Family law issues
  • Personal injury tort claims
  • Insurance claims
  • Damages quantification
  • Expert testimony

At various stages of the litigation process we are often asked to provide the following assistance:

  • Quantification of financial losses and/or economic damages in various types of disputes. Financial losses could include past and future lost profits, lost or decreased value of business and out of pocket costs
  • Assessment of the value of an asset, security or business interest
  • Identification of documents and business records to be requested
  • Formation of questions to be asked at Examination for Discovery and Cross Examination
  • Review and analyze financial evidence
  • Investigation and evaluation of the strengths and weaknesses of the financial evidence
  • Development of computerized applications to assist in the analysis and presentation of financial evidence
  • Document management
  • Identification and evaluation of alternative methods of quantifying damages and mitigating damages
  • Location of other experts (e.g. real estate appraisers, machinery and equipment appraisers, actuaries, compensation experts, etc.)
  • Preparation of a written report setting out our findings
  • Review of opposing expert’s report including the preparation of a formal written critique
  • Evaluation and formulation of negotiating positions with respect to financial settlements
  • Preparation of visual aids to support and illustrate our evidence
  • Provision of expert testimony
  • Preparation of demonstrative evidence at trial
  • Preparation of questions for the cross examination of the opposing expert at trial

We have prepared various types of reports calculating economic damage reports for personal injury cases such as slip and fall, motor vehicle collisions. We will meet with your client to obtain information on their education and employment background in order to assess their loss of future earnings. Each case has its own nuances and we aim to provide tailored loss of earnings calculations.

We have broad experience incorporating all aspects of a personal injury claim into our calculations, including economic data and vocational and rehabilitation reports.

We also provide future care calculations and reports based on the recommendations of healthcare professionals.

During a marital dispute, it is important that financial elements are not overlooked. Rosehood has the experience and expertise to provide a broad analysis and reporting of the accounting and financial aspects involved during the litigation process. Our services include all matters that relate to family law proceedings before the Ontario Court of Justice and the Ontario Superior Court.

Our divorce services include:

  • Business Valuation
  • Asset Valuation
  • Consultation on economic and tax issues
  • Net Family Property (NFP) calculations
  • Income Analysis

Our Valuation Professionals serve clients across Guelph, Peterborough, Barrie, Port Perry, Hamilton, Kitchener, Toronto, Ajax, Oshawa, Burlington, Milton, Oakville, Brampton, Mississauga, Markham, Newmarket, Vaughan, GTA, Canada, Los Angeles, New York, Orlando, Miami, Chicago, Las Vegas, Jeddah, Riyadh, Dubai and Abu Dhabi.

Contact Rosehood Global Financial Inc. In Toronto, ON