Area of Expertise
Corporate Reorganization Valuations
Companies regularly undertake corporate reorganizations to achieve goals such as tax planning, succession planning, and creditor proofing. A corporate reorganization can also serve to better align distinct businesses within a corporation or corporate group (for example by “spinning out” a division into a separate company), or to simplify a corporate structure that no longer serves the current business reality. However, any time assets are transferred to or from a corporation, or a company’s share structure is reorganized, these transactions need to be reported at fair market value.
We have been engaged on many business valuation mandates across a wide range of industries. These matters regularly require an allocation of value among multiple share classes, and we have a solid understanding of the Canada Revenue Agency’s evolving positions on how different share attributes and structures may impact value.