pkConsulting was created to help you reach your financial dreams by giving you a roadmap for success.

Why use a Business Advisor?

When your business situation stops being "business as usual" you may need help in finding the most effective solution. You need expertise that enables you to respond to timely and unique opportunities, or deal with issues that are keeping your business from realizing its full potential. These skill and time constraints often fall outside of your management team's core set of abilities.

Business advisors bring experienced, learned and objective viewpoints, and a focused skill set to the task of recognizing, and resolving these types of challenges.

Business planning - what's involved?

Business plans are needed in many circumstances, e.g.

• General planning by management ( Short and longer term direction)
• Expansion
• Bank financing
• Equity financing
• Succession planning
• Mergers
• Any other kind of business transition

The business planning process often involves a valuation.
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Why use a Chartered Business Valuator (CBV)?

The greater the risk of a challenge to a valuation conclusion, the greater the need for a recognized objective expert

• A CBV designation provides prima facie credibility in the eyes of the courts (e.g. if there's a challenge to a valuation conclusion)
• Some aspects of the valuation process are more complex than is readily apparent (minority positions, complex shareholder agreements, etc).

We have the expertise to pull this information together.

Business valuation - what's involved?

Business valuations may be needed in many circumstances, e.g.

• Disposal of a business, including a sale to management or children or outside buyer
• Acquisition of a new business
• Mergers
• Other types of business transition
• Loss compensation
• Tax planning (S. 85 rollovers etc)
• Division of assets resulting from Family Law issues.
• Business valuations help to identify areas of risk or weakness in a business
• When planning a sale a valuation should be carried out as early in the process as possible
• A business valuation typically aims to establish the fair market value (see definition) of the business and can range from a limited critique to a complex and detailed valuation.

Business Valuations - contentious issues addressed in the courts

• Use of hindsight
• Inappropriate use of market comparables
• Inappropriate minority discounts, illiquidity discounts, or control premiums
• Expert's level of expertise
• Valuation method / approach
• Interpretation of shareholder / partnership agreements, restrictive covenants, preferred shares
• Presence or influence of "special purchasers"
• Latent / contingent disposition costs
• Public companies (e.g. does share price = FMV?)
• Personal vs. commercial goodwill.
  

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Some thought with respect to selecting your advisory team

There are three simple but essential elements to successfully engaging a consulting service:

• Identify the need for business consulting services
• Carefully select a consulting service based on their knowledge, demonstrated skills and competencies
• Work with the consulting team to ensure that the assignment is satisfactorily completed in accordance with their proposal

Identifying the Need The first step in selecting a consulting team is to identify why you need one. Is there a problem you need to resolve, an opportunity you want to capitalize on? What needs to be accomplished to meet your goals?

Once the need is established, you can begin the process of hiring the right consultant for the job.

Selecting the right consulting team for your business situation will involve taking into consideration a number of important elements:

• Demonstrated skills and competencies
• Relevant industry experience
• Adherence to ethics and standards
• Availability
• References
• Professional fees and your available budget

The more carefully you select your consulting team, the more likely you are to be pleased with the outcome of the engagement. Ensure that the consulting team has experience dealing with your specific circumstances. Ask about relevant experience or education that pertain to the tasks you want the consultant to perform. Ask for references from other clients and follow up on them. In effect, when engaging a consulting team you should perform the same due diligence as you would in hiring a permanent employee.

Work with the advisory team Business consultants typically submit a proposal describing their understanding of the client's needs, their approach, methodology, proposed deliverables, credentials and professional fees. Ask the business consulting service to submit a proposal for your review and arrange a meeting to discuss their submission. Then work with the team to ensure your needs are being met.
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Why use a Business Advisor?

Why use a Chartered Business Valuator?

Selecting your Advisory Team.