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Family Business Valuation Considerations

Earlier this week, I had the pleasure of hosting the Family Dispute Resolution Institute of Ontario’s webinar on “Special Considerations When Valuing a Family-Owned Business” featuring Tom Strezos, Adam Guyatt, and Claudio Martellacci of Grewal Guyatt LLP.  A link to their article on this topic is available here.

In the estates context, we often encounter situations where a family business needs to be valued after death.  While we will often defer to experts for assistance in this regard, it can be helpful to keep in mind some considerations unique to family businesses that might affect valuation.  These may include the following:

These considerations may be relevant to probate applications, estate administration, and certainly where there are claims against an estate or specifically against a family business.

Also discussed during yesterday’s webinar was the idea of business valuation expert hot-tubbing, whether formally at trial or otherwise working together in a similar manner to try and determine a reasonable value of a company for the purposes of settlement discussions.  This is an Interesting concept that may work well for some estate matters where valuation issues are at play.

A recording of this week’s FDRIO webinar is available to FDRIO members free of charge and will be replayed at a fee for non-members later this month.  More information is available at fdrio.ca.

Thank you for reading.

Nick Esterbauer