You are an entrepreneur who has spent a lifetime painstakingly building your business from the ground up. While it has been a source of great pride, you are now looking to step away and explore other business ventures or personal interests. The decision regarding the succession of your company brings you to a financial and emotional crossroads. Do you sell it, close it or pass it on to your next of kin? The last option is fraught with numerous complications, not the least of which is how to practically segment it, combat tax issues and allocate value at the same time. Additionally, even if your retirement and subsequent transfer of business ownership are fifteen or twenty years away, it is never too early to formulate a plan that delivers a profitable ROI and ensures a smooth and successful transition. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay When it comes to creating a family succession strategy, it is always in your best interest to consult with an experienced valuation professional. There are only a handful of accounting firms in Markham that can provide reliable, results-oriented advice. At HSM, we are committed to taking these services to the next level. A formal assessment process is the cornerstone for deciphering the steps needed to achieve your succession goals. Statistics suggest that approximately 90% of businesses in North America are, in fact, family-owned. What is alarming is that nearly two-thirds of closely held businesses cannot withstand the harsh competitive and financial realities of surviving into the second generation. Perhaps, the low survival rate can rightly be attributed to the fact that not many entrepreneurs properly plan the transfer of ownership. These benefits highlight the important role a professional business valuation plays in family succession planning. Provides access to expert information and advice This will help reposition your business for future growth. To put it simply, a professional business valuation is the process of estimating the accurate economic value of the company, from an unbiased point of view, by evaluating variables such as net profits, revenues and expected cash inflows. The resulting figure, or fair market value, is what allows your shareholders, partners, investors and buyers to be on the same page and avoid points of conflict regarding the value of the company. If you own a small business, it will be impossible to know the traded value of your company on which to base your transition tactics or succession planning. A professional, experienced appraiser knows the right questions to ask when arriving at fair market value. Apart from these, the evaluator will also help you understand which factors play a crucial role in creating value for your company. This means that, with this information in hand, you will be equipped to refine key valuation factors on an ongoing basis that will help you reposition the business in time to generate a higher sales price when the time comes to transfer ownership of your company to your family members. Not only that, a good valuation will also help you plan ahead for things like business management, discounts for marketability and liquidity, brand value and longevity, and the reputation of the family business. Consolidates the ability to take advantage of tax incentives and lucrative estate planning tactics Have a realistic approach idea for.