A large private company in the medical services industry that received a reassessment notice from Canada Revenue Agency sought our assistance to prepare a valuation for income tax purposes.
Our challenge was to identify appropriate comparable public companies operating within Canada and the United States in order to properly respond to Canada Revenue Agency.
We prepared a valuation report and critiqued the report prepared by another specialist retained by Canada Revenue Agency; the valuations differed by approximately $200 million.
Our report included an analysis of:
- Comparable public companies operating within Canada.
- Private company transactions. We identified a comparable private company which was purchased in the applicable time period.
- An arms’ length offer was made for this business.
- Attributes specific to our client’s business.
Canada Revenue Agency accepted the value calculated in our report and withdrew the reassessment.