Post Event - Summary

James Dubroy of James R. Dubroy Ltd

James started his craft talk last week by explaining to members that he is a Business Broker and in that capacity he helps owners of privately held businesses through the buying and selling process.  James also provides his clients with business valuations and is a Certified Management Consultant.  During his preseantation he discussed the process and factors involved for valuating a business.

Becoming a business valuator takes 3 to 4 years of intense study because the concept of valuating a business is intricate and technical.  In order to help illustrate this concept for members, James described a situation he ran into while playing golf in the US.  James and his wife were part of a foursome which included a business owner who was looking to sell his business.  He was thinking about selling the business to his two sons who were currently working in the business but was not sure if this was the best course of action as he had other children who were not involved with the business.  Upon finding out that James was a Business Broker and Valuator (and wanting to determine the fairest way for all his children) he began to ask James questions while they played their round. 

After answering several questions for his golfing companion, James explained to the man that the value of a business is much more than the actual financial amount of the business.  He advised that there are other factors including goodwill, economic climate, etc. which also play a role in determining the overall worth of a business.  He outlined for the business owner the steps involved in the valuation process. 

1. Determine the Profitability of the Business - This is done by ensuring that all revenues are accounted for, ensuring that all expenses are normal and making any necessary adjustments to correct for errors.
2. What are the Capital (tangible) Assets - These are required to create that level of profitability.  Assets used to generate funds.
3. What are the Intangible Assets - Things that are nonphysical but give value to the business such as trademarks, reputation, size and quality of customer base, key people etc. (A business with a good team/employees is easier to sell and more valuable than one where the owner is the rainmaker/does everything).

James then provided the following simplified example to help illustrate what he explained above regarding the calculation of the overall value of a business.

• If the profitablity of a business is $1.2 million and the tangible value is $1 million then the intangible value is $200,000 (20% of the tangible value).

Business valuation is done not only when the entire business is being sold, but also when selling assets, shares or a percentage of the business (minority shareholder is buying out majority shareholder).  In many cases James is able to walk his clients thorough entire processes from start to finish using his broker, valuation and managment expertise.

To learn more about the services that James R. Dubroy Ltd has to offer and how they can work for you contact James Dubroy at (613)235-6166.

Luncheon at the Rideau Tennis Club
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Thursday, April 28, 2011 - with Thank Yous

Craft Talk Speaker: Geoff Carter of O'Farrell Financial Services Inc.

Menu: Seasonal Mixed Greens, Baked Maple Infused Trout and Lemon Pie

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Thursday, May 12, 2011 - with Thank Yous 
Guest Speaker: Steve Legere of Canadian Taxpayer Federation
Menu: Tomato Vegetable Soup, Roast Prime au Jus and Strawberry Cheesecake

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Thursday, May 19, 2011 - with Thank Yous 
Craft Talk Speaker: Thom Bourne of Nutri-lawn Ottawa
Menu: Ceasar Salad, Chicken Parmesan and Carrot Cake

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Thursday, May 26, 2011 - with Thank Yous 
Craft Talk Speaker: Paul Drouin of Raymond James
Menu: Fajita Buffet

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Interested in doing a craft talk? Contact Jennifer to arrange a date.

Are you interested in learning more about the International Executives Association?  Check out their monthly newsletter for details on the upcoming conference, news from other chapters and on joining the IEA Linked In group.

Members are encouraged to bring along guests, potential members or clients to our weekly luncheons at the Rideau Tennis Club. There is no cost to the member for any potential member attending an OXA luncheon for the first time. Please notify Jennifer Baker, Executive Coordinator at info@oxa.org.

Leads and Referrals

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Mark Your Calendar
for 2011!

Thursday, June 23:
Annual General Meeting

Wednesday, July 20:
Annual Garden Party

Thursday, August 25:
Annual Golf Tournament

September 19-21:
IEA Annual Conference

Wednesday, December 7: Annual Christmas Celebration  

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Jennifer Baker &

Raymonde Lemire

c/o Documents Etcetera

Suite 200

435 St. Laurent Blvd

OTTAWA ON K1K 2Z8