Bob Gauvreau explains how business valuations resolve disputes between partners and shareholders. An unbiased assessment helps facilitate buyouts or exits when relationships break down.
So one area where a.
Business valuation is commonly used is when there's any sort of partner or shareholder disputes, again.
There'S going to.
Be a document that typically says if there's any partner or shareholder dispute in your business, this is the occurrence of what happens in that situation. And a lot of times it's that either one shareholder has to buy the other one out, or there's some sort of exit mechanism so that the business can carry on, or one partner can get bought out by the other. And in those particular instances, whether it's a shareholder or a partner that needs to get bought out, that triggering of that event warrants a business valuation to be completed in your business typically outlines that right in a partnership agreement or a shareholder agreement. And why we need that to happen is that the business valuation will come in as an unbiased sort of third party assessment of your business and identify what the fair market value is of that so that each party can agree towards what their buyout or what their buy in would look like in any of those sorts of disputes. So in.
This instance, if you've had.
A shareholder or a partner dispute, it's likely triggered an event where an action has to happen. And almost all of those times the action is that a business valuation needs to be completed and our team of chartered business valuators will be able to support you with that.
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