Downtown Vancouver seen across the water from Stanley Park

Business valuationVancouver

Business valuation in Vancouver

Independent valuations of private companies and shareholdings in Vancouver and across British Columbia. Every conclusion is tied to the company’s own numbers, with the reasoning set out so buyers, investors, courts and the CRA can follow it.

When a valuation is needed

Six situations, six different questions

The purpose of a valuation decides the standard of value, the depth of the work and who will read the report. We settle it before anything else.

Selling or buying a business

A supportable range before negotiations start, and a separate view of what a particular buyer could pay once synergies are counted.

Raising capital

A pre-money value you can defend with investors, including how SAFEs, convertible notes and new share classes affect it.

Shareholder buyouts and disputes

The value of an interest under your shareholder agreement, including whether minority and marketability discounts apply.

Separation and divorce

The value of a business interest for a family law settlement, with owner compensation and one-time items normalized and explained.

Tax and estate planning

Fair market value for an estate freeze, a rollover or a transfer between related parties, documented for the file.

Stock options and 409A

A price for option grants that meets Canadian rules and, for holders taxed in the U.S., the 409A safe harbor.

How we help

Business valuation services in Vancouver

Business valuation services for private companies, founders and shareholders in Vancouver and the Lower Mainland, and for the lawyers, accountants and investors who advise them. Each engagement pairs market evidence with a close reading of how the business makes money.

Valuations for a sale or acquisition

An independent view of value before a sale, purchase or merger, with the range and the assumptions behind it, built to hold up through negotiation and the buyer’s diligence.

M&A in Vancouver

Startup and venture valuations

Pre-money values for financing rounds and for SAFE and convertible note conversions, for Vancouver founders and the investors backing them.

Capital raising in Vancouver

409A and equity plan valuations

Fair market value for stock option and share plans, including 409A valuations for companies with U.S. employees or U.S. investors on the cap table.

What is a 409A valuation?

Shareholder and dispute valuations

The value of a shareholding in a buyout or a dispute, written so every party, and the court if it comes to that, can follow the reasoning.

Valuation in disputes and divorce

Family law valuations

The value of a business interest in a separation in British Columbia, including any growth in the value of a business owned before the relationship.

Succession, restructuring and tax

Fair market value for a sale to family or management, an estate freeze or a reorganization, documented for the file and for the CRA.

Restructuring in Vancouver

Valuation in Vancouver

What shapes value in Vancouver

Vancouver’s private companies span technology, construction and real estate, natural resources, trade and logistics and consumer brands, and their value is tested by local and out-of-province buyers, lenders and investors alike. The same methods apply here as anywhere, but local conditions change the inputs, and a valuation should show how it has taken them into account.

Exits are also coming. Across Canada, three in four small business owners plan to leave their business within ten years, and fewer than one in ten has a formal succession plan, according to the Canadian Federation of Independent Business. For many owners, a valuation is the first step.

Read our analysis of valuation multiples in Vancouver.

A market of founder-led companies

Most private companies in Vancouver are owner-managed, in sectors from technology and construction to consumer brands, natural resources and the trade and logistics businesses around Canada’s largest port. Their financial statements reflect the owner’s decisions as much as the market’s, so normalizing owner compensation, related-party costs and one-time items is often where most of the work lies.

High costs and a smaller pool of buyers

Property and wages cost more here than in most Canadian cities, and the local market is relatively small and closely networked. Customer concentration and reliance on the founder weigh more heavily as a result, and the most likely buyer for a larger company may be based outside the province. Owners also often hold the building the company operates from; we separate the real estate from the operating business and put the rent on market terms.

Cross-border cap tables

Vancouver’s venture-backed companies often raise from U.S. investors and hire in the U.S., so option grants may need a 409A valuation as well as Canadian fair market value, and the two have to be consistent. How 409A and Canadian fair market value relate.

Close to the public markets

Vancouver is home to many of Canada’s junior mining and exploration companies and other issuers on the TSX Venture Exchange. For a private company, a listing or a reverse takeover can be a real alternative to a private sale, and listed peers help anchor the market approach once differences in size, liquidity and risk are accounted for.

Our view

A valuation is only as good as its reasoning

Any model will produce a number. What matters is whether it holds up when a buyer, an investor, the other side’s adviser or the CRA asks how it was reached.

We start with how the company makes money and what could change it, then choose the methods that fit the question. Every adjustment and assumption is written down, so the people who rely on the valuation can test it.

Watch: Valuation That Reflects Your Reality

How an engagement works

Five steps from first call to final report

Most valuations take one to three weeks once the information is in hand. You receive a written proposal with the scope, timing and fee before any work begins.

Need a valuation for a family law matter or a shareholder dispute? Tell us at the start. The valuation date, the standard of value and the form of the report depend on who will rely on it.

A working session with clients around a meeting table
  1. ScopeWe agree the purpose, the valuation date, the standard of value and who will rely on the report.
  2. InformationYou share financial statements, tax returns, forecasts and shareholder agreements, and we meet management to understand the business behind them.
  3. AnalysisWe normalize earnings and apply the approaches that fit: income, market or asset-based.
  4. ReviewWe walk you through the draft range and the key assumptions, and check the facts with you before anything is final.
  5. ReportYou receive the final report, and we answer questions from the buyers, lenders, advisers or courts who rely on it.

Need to know what your business is worth?

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Selected clients

Companies we have worked with

View selected work

170+Engagements since 2016
$300m+Transactions and financings advised
2016Founded in Vancouver
Battery X Metals logoBuildDirect logoCedar Coast Capital logoDraganfly logoHelios Wire logoIan Scott International logoKegshare logoKeirton logoQwick Media logoReship logoSubway logoUltimate Tools logo

Frequently asked questions

Business valuation questions we hear most often

An independent estimate of what a company or a shareholding is worth on a given date, based on its financial performance, its risks and prospects, and evidence from the market. The purpose of the valuation decides the standard of value and the depth of the work.

It depends on the purpose, the size and complexity of the business and the depth of report required. After a first conversation we send a written proposal with scope, timing and fees, so you know the cost before any work begins.

Most engagements take one to three weeks, depending on the complexity of the business and how quickly the information comes together.

The income approach, usually a discounted cash flow; the market approach, using comparable companies and precedent transactions; and asset-based methods where they fit. Where the approaches point to different values, the report explains how each result was weighted.

Three to five years of financial statements and tax returns, current results and any forecasts, your cap table and shareholder agreements, and details of owner compensation and one-time items.

Yes. We value early- and growth-stage companies for financing rounds, option grants and SAFE and convertible note conversions, where the market approach and the terms of each share class carry more weight than current earnings.

Yes. We prepare valuations for family law matters and shareholder disputes in British Columbia, written so both sides, their lawyers and, where needed, the court can follow and test the reasoning. Read how valuation works in disputes and divorce.

No. Vancouver is our home base, and we value companies across British Columbia, including Victoria and Kelowna, and across Canada, including Alberta, Toronto, Ottawa and Montreal.

Have a question that isn’t covered here? Ask us directly.

Start a conversation

Talk to us about a valuation

Tell us what the valuation is for and when you need it. We will come back with the questions that matter for your situation.

What happens next

1We reply within 24 hours.
2A short call to understand the purpose, the timing and who will rely on the valuation.
3A written proposal with scope, timing and fee, before any work begins.

Office

Alphabridge Group Inc.555 Burrard StreetVancouver, BC V7X 1M8

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