Marc Duhamel, Scientific Director, CTEQ and Professor, UQTR (Québec, Canada) & Rim Frini, Vice-Chair of Career Development for CAPS/ACPP, and postdoctoral fellow at UQTR (Québec, Canada) will provide insights on SME valuation – based on a case study they have been working on.

Business valuation of SMEs is a critical issue in the business transfer process. Still, sellers, buyers and appraisers face numerous challenges when valuing a small privately held business. The challenges include the availability and reliability of earnings information, the low marketability of the ownership shares, the valuing of intangible assets in addition to valuing other business or transaction-specific resources such as the competencies, knowledge and business networks of key executives, managers and employees. With limited information about the market value of SME in business transfers, divergent evaluations can contribute to the mismatch of expectations between sellers and buyers, trigger strong emotional responses, lower real transaction prices and re-orient business transfer strategies towards lower valued alternatives, including liquidation. In the theory session of this TRANSEO Academy, our objective is to demystify business valuation methods in the case of SMEs, highlighting the growing importance of intangible assets.

With this first theoretical approach, you will have all the concepts in hand to participate in the practical case on October 15th!