In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Melanie Russell, President of Kalex Valuations. Melanie Russell, is a business evaluator who does so to meet the needs of businesses for a range of issues like MNA and family law issues.
Episode Highlights:
● 01:16 – Melanie Russell, explains what he does for a living.
● 03:18 – What does the process of valuation look like?
● 04:56 – What types of metrics does she use to come up with a number?
● 07:00 – Valuation is ultimately a finance-driven study.
● 10:07 – How is valuation looked at differently by different roles that people play?
● 12:13 – What are some of the key factors that add to high valuations?
● 15:00 – How much education or push-back does she get when dealing with valuations?
● 16:32 – How does she go about normalizing expenses back into the cash flow?
● 19:26 – How much does sweat equity create push back during the valuation process?
● 23:36 – Melanie Russell discusses tax planning and estate freezes.
3 Key Points
1. Cash flow is generally what drives investors.
2. Liquidity is one the biggest difference between private company valuations and public company valuations.
3. Currently, the trend appears to be more capital-based sophisticated purchases versus just strategic ones.
Tweetable Quotes:
● “I am by background a legacy CA, CPA that specializes in the area of valuations.” – Melanie Russell
● “Valuations are business assets that are used for various purposes, whether it’s trying to sell as business, whether it is trying to transition to the next generation or to employees, whether it is a dispute.” – Melanie Russell
● “My value add is telling business owners or asset owners what someone might pay based on logical, rational thinking.” – Melanie Russell
Resources Mentioned:
● Facebook – Jason Pereira’s Facebook
● LinkedIn – Jason Pereira’s LinkedIn
● FintechImpact.co – Website for Fintech Impact
● jasonpereira.ca – Website
● Linkedin – Melanie Russell
● Kalexvaluations.com – Website for Kalex Valuations
● Linkedin – Melanie Russell’s Phone Number: (416) 488-9590 Ext. 225
● Melanie@Kalexvaluations.com – Melanie Russell’s Email
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