Estimating the buyout value of your business is at the heart of the transfer process. Generally, owners tend to overestimate the value, whereas buyers, either an individual or a co-operative, tend to underestimate it.

The co-operative business advisor will suggest you avoid this problem by having a neutral expert conduct an objective valuation. If your business is relatively large, it may be worthwhile to have this done by a person designated, for example, as a chartered business valuator (to locate your nearest Chartered Business Valuator go to www.cicbv.ca).

Your co-operative business advisor can refer you and, if need be, guide you in your choice of an external expert.

What is important is that the expert, or firm of experts, performing the valuation has the trust and prior approval of both parties, you and the co-operative's steering committee, so that no one questions the conclusions.