Business Valuation

2ic provides business valuation reports and transaction advisory services to clients. Our approach to valuation meets two tests. First, we reach an accurate value conclusion. Second, we clearly and convincingly establish how the conclusion was reached. 2ic goes beyond merely the numbers. We also utilize transaction databases and other secondary research sources that reinforce the future value of enterprise growth opportunities.

Some practical reasons for obtaining a business valuation include the following:

Benchmarking shareholder value
Fairness opinions for selected transactions
Obtaining financing
Spin-offs and split-ups
Purchase/sale and allocation of purchase price
Buy-sell agreements
Partner/shareholder disputes
Employee share ownership plans
Bankruptcy and reorganization
Marital dissolutions
Damage/economic loss analysis
Eminent domain

A valuation report can provide one of three types of conclusion: opinion, estimate or indication of value. These reports are differentiated by the level of assurance they provide and the amount of analysis, investigation and independent corroboration required to support each type of conclusion. Our valuation reports are written in accordance with the guidelines established by the Canadian Institute of Chartered Business Valuators.

Types of Valuation Reports
Report Type	Opinion	Estimate	Indication
Credibility	Highest	Moderate	Rough ballpark
Assurance	Highest	Well considered	No assurance
Level of analysis, investigation and independent corroboration	Extensive	Moderate	Limited
Best Use	Appropriate in situations that involve public securities, high risks, important or contentious issues or when there are legal proceedings.	Ideal for preliminary negotiations, succession planning and situations involving important issues subject to budget constraints.	Provides an approximate valuation for initial planning.

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