BUSINESS VALUATION

Tim Leitch CBV

Formal valuations of all of the outstanding shares or net assets of privately-held business interests are often required for compliance, regulatory, family law matters or other purposes. Tim Leitch has over 25 years experience in business valuation, in which he has handled matters relating to:

  • mergers & acquisitions
  • financings
  • shareholder transactions (majority/minority shares)
  • fairness opinions
  • estate freezes/family business succession
  • family law matters
  • public and private company shareholder disputes, including fair value and shareholder dissents
  • shareholders agreements
  • litigation support services for dispute resolution and commercial litigation
  • portfolio valuations of Venture capital funds
  • valuation report critiques
  • dispute resolutions

Tim’s initial experience in the field of valuations was at Campbell Valuation Partners Limited, (1988-1996) where he worked on a number of high profile valuations relating to shareholder disputes, estate freezes and family business succession, and family law matters.

As Director, Portfolio Development and Valuations at Covington Capital (1996-2004), Tim oversaw the valuation of the investment portfolios of five Labour Sponsored Venture Capital Funds with combined assets of approximately $450 million; managed government relations and compliance issues; served on the Board of Directors of certain portfolio companies; structured transactions; oversaw portfolio project assignments; and, evaluated new investment opportunities.

Over the years, Tim has worked with a broad spectrum of companies ranging in size from small start-ups to large public corporations with multiple divisions/business units. Assignments have included the strategic evaluation of businesses and/or business units, design and implementation of short and long term tactical business plans, private equity financing, company turnarounds, financial structuring and dispute resolution. Tim has experience as a director, officer, senior executive and operations manager. This corporate sector experience is an invaluable asset that Tim brings to the valuation table and sets Tim apart from most other business valuators.

The determination of value of a company and the preparation of a valuation report is a significant undertaking. The depth and breadth of the review & analysis and the written report must meet the standards of the Canadian Institute of Chartered Business Valuators.

Upon occasion, Tim has been approached by individuals requesting valuations, when either: a formal valuation report is not required; or, the transaction dollars in question make it difficult to justify the expenditure of a valuation report. If there is an alternate, less costly solution, Tim will advise his clients.

Litigation is both time consuming and costly and should be avoided whenever possible. If properly handled, many, but not all, potential litigious issues can be resolved before anyone files a claim in court. Tim has successfully managed delicate situations and facilitated the resolution of issues before they reached the stage of litigation. Even when claims have been filed in court and matters are being litigated, there may be the opportunity to resolve them before going to court. Tim has acted as an advisor in litigation matters and has helped formulate settlements prior to trial.

 

Experience that Counts

Examples from the portfolio of valuation assignments Tim has completed during his career are set out below:

 

Large Public Corporations

  • Valued an international food processing conglomerate with over $2 billion in annual sales for litigation purposes.
  • Valued an international chemical conglomerate’s 23 Canadian business divisions for litigation purposes. The matter was settled prior to the trial, thus avoiding long and costly litigation.

 

Venture Capital Funds’ Investment Portfolios – Private Company Holdings

  • As Director of Valuations and Corporate Development for a venture capital fund manager, Tim oversaw the valuation of the investment portfolios of 5 Labour Sponsored Venture Capital Funds with combined assets of approximately $450 million. He designed and implemented the valuation policies, practices and procedures for the management and reporting on the investment portfolios under management. The Funds collectively held investments in over 50 companies, most of which were start-up or early stage companies. The investments were closely monitored for daily pricing adjustments. Quarterly Portfolio Valuation Reports were prepared for each Fund for presentation to their respective Board of Directors’ Valuation Committees.

 

Small & Medium Sized Private Corporations

  • Valued a well-established, family-owned and operated retail business for succession planning purposes.
  • Valued a franchise retail establishment for sale purposes.
  • Valued the shares held by a former employee and minority shareholder of a small manufacturing operation that were to be repurchased by the Company.
  • Valued the shares held by a former employee and minority shareholder of a chemical distribution company that were to be repurchased by the Company.
  • Valued the shares of two corporate entities that were to be merged together to determine a rateable value for each.
  • Negotiated Settlement – Engaged by the Executor of an Estate to provide a review and critique a valuation report on the value of the minority equity position that the Estate held in a family-owned business. Prepared a comment letter outlining general valuation principals and methodologies that the Executor shared with the other shareholders. The principals and comments contained in the letter formed the basis for the parties to formulate a value acceptable to all parties.

 

Expropriation Disputes

  • Valued a bear hunt operation in northern Ontario. An operator of a bear hunt camp, lost his bear hunting territory when the crown land that he had rights to operate on was included in a land settlement claim with a First Nation. The operator was claiming a significant business loss in connection with his operation. Tim was assigned the file when the firm he was with was engaged by the Crown to provide advice for the settlement of the claim. Tim shared his valuation conclusion with the Crown and recommended a settlement structure based on his conclusions. The Crown approved the recommended settlement terms and Tim successfully negotiated with the claimant’s advisor.
  • Farmland near a major city had been expropriated to allow for the construction of a highway. All but one of the landowners had settled their claims with the province a number of years earlier. The one individual that did not settle owned a relatively small acreage and operated a small greenhouse operation as a side business. The landowner was claiming a significant business loss and relocation costs but was quite selective with the information he shared with the province. Tim was assigned the file when the firm he was with was engaged by the province to determine the value of the business and quantify certain costs. We obtained access to the information (court order) and issued our report. The matter was settled out of court based on the firm’s valuation conclusion.
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