Please read the following very carefully.
PLEASE CONSULT YOUR ACCOUNTANT AND/OR LAWYER
The appraisal of the value of assets is extremely complex but can be accomplished with
a degree of accuracy because asset values can be defined in the marketplace.
The sale or transfer of shares as a method for disposing of a private corporation is
considerably more complex because the buyer is assuming liabilities and is subject to a
complex set of Tax and Corporate laws. Please consult your Accountant/Lawyer if
contemplating purchase or sale of any business by transfer of shares.
TAX AND LEGAL ADVICE MUST BE GIVEN BY QUALIFIED
PROFESSIONALS BASED ON INDIVIDUAL CASES.
WHAT IS BEING VALUED IN THIS REPORT
This Business Appraisal Report and analysis of value assumes an “Asset Sale” and
does not reflect the “Share Value” of the Company.
It does not include “Current Assets” such as Cash, Accounts Receivable, prepaid
expenses and other liquid assets that would normally show up on the Accountants
Balance Sheet for the Company.
It does not take into account the Intellectual Property of the business or the Cost to
Create this intellectual Property which in relation to Business Systems could be
considerable.
It also does not take into consideration any of the companies liabilities. This report
includes an opinion of the values of ‘Tangible’ (hard) assets and ‘Intangible’ (goodwill)
assets that the seller would keep and would pay off any debts that the company would
owe at the time of sale.
This report does not take into consideration any real estate that the company owns and
considers this to be an “Investment Asset”. A separate valuation on any ‘real property’
should be done by a licensed property valuer*.
When the company does own real estate, however, a comparative market rent is
estimated and deducted from the businesses cash flows (if not already accrued) to
reflect the true earning power of the company, since the ownership of real property is
discretionary to a business. If the company being valued owns the real estate it should
be considered an investment asset* (see above) that would be added to the value
opinion in this report if the real estate is being sold/purchased as part of the same
transaction.
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