MLT Aikins lawyers Mark Mielke and Rob Worthington were recently invited to appear on the Achen Henderson CPAs podcast Your Business Unleashed, where they were joined by Clayton Achen (Partner, Achen Henderson CPAs) and Gord McFarlane (President, McFarlane Transition Advisors) to discuss Business valuation in Canada: Tax planning, M&A readiness and ESOPs (what owners need to know).
Business valuation in Canada is far more than assigning a figure to your company. A defensible valuation anchors tax planning, protects against audit risk, strengthens M&A negotiations and keeps employee stock option plans (ESOPs) credible. For owners considering transition, valuation is the starting point for a smarter strategy. It reveals how value is created, where risks lie and what operational improvements will increase enterprise value before a sale or succession.
In the podcast, Mark and Rob discuss several topics important to Canadian business valuation, including:
- How CRA views fair market value and related-party transfers
- The problem with relying on multiples alone
- Using valuation as a strategic tool 2–3 years before exit
- ESOPs and employee equity: Why strike price fairness matters
- Governance matters: Why non-voting shares still carry risks
- Why a CBV valuation is the best insurance policy
- Action steps for Canadian business owners
The MLT Aikins taxation group is one of the strongest tax practices in Western Canada. Our lawyers have experience across a broad spectrum of tax issues, including corporate tax planning, income tax, corporate capital tax, and the implications of the Goods and Services Tax and provincial sales tax, levies and royalties on commercial transactions. We can also help you make the most of Canada Revenue Agency’s Voluntary Disclosure Program if you have failed to declare all taxable income in previous years.
In addition, MLT Aikins has an active mergers and acquisitions practice which has been involved in numerous significant private and public transactions across Western Canada, involving international acquirers or target companies. Several of these transactions have required the creation of complex or innovative partnerships or joint venture relationships and have involved multiple jurisdictions beyond Western Canada. We regularly advise business clients in a manner that covers the entire cycle of business transactions. Our services include structuring, legal due diligence and the negotiation of letters of intent, offers to purchase and agreements of purchase and sale.
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