06/24/2026
"My business is profitable, so why do I need a formal valuation if I’m not selling right now?"
A business valuation isn't just an exit strategy, it’s a risk management and planning tool.
Even if a sale isn't on the horizon, having a certified baseline value is legally and financially required to protect what you've built. Here is why profitable businesses need one today:
- Shareholder Agreements: It sets a fair, pre-determined buyout price if a partner suddenly exits, gets a divorce, or passes away. This helps in preventing messy legal battles.
- Tax & Estate Planning: The CRA requires a formal valuation for corporate restructures, succession planning, or passing shares to family to avoid significant tax penalties.
- Funding & Growth: Banks and investors require an independent, certified valuation before approving major commercial loans or equity funding.
Think of it as a financial checkup that highlights how to increase your company's actual market worth before you eventually decide to exit.
Connect with the Chartered Business Valuators (CBV) at Taylor Leibow to get answers to questions like this for your business.
