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INTANGIBLE ASSET EXPERIENCE is now required
Bill C-208 Effective January 1, 2024 Read more

Intangible Assets make up to 90% of the assets in an average business today.
Intangible asset experience cannot be taught in a classroom.
We believe 10 years of intangible asset experience is essential to an accurate business valuation.

CRA is still accepting business valuation reports from CBV’s but as per information from AI (ChatGPT4) below. How will they fare on review? And how accurate are they?
You would not hire a surgeon, hire an art restoration person, or ride on an airline with a Captain who had less than 10 years practical hands on experience.

FACT: Intangible Assets make up the majority of the assets in an average business today.
The 10 to 20 years of intangible asset experience one receives while owning and operating a private business is essential in using the Eric Jordan “25 Factors Affecting Business Valuation.

This intangible asset experience is not so different from the at least 5 to 15 years of flight experience you are required to have before you become the Captain on a commercial passenger aircraft.

The intangible asset experience is not so different from a surgeon where it takes 13 to 20 years to be a chief surgeon and 5 to 7 years or more experience that must be hands on.

The Intangible asset experience is also similar to the 10-15 years of restoration experience that is required before anyone prudent is going to let someone restore a family art heirloom.

A private business is like a family heirloom. Data and reports from 2020 forward say up to 90% of the value of the family business is likely to be intangible assets. Unless a valuator has 10 to 20 years of business owner experience dealing hands on with intangible assets prior to valuation training, we believe they do not have adequate experience to defend a valuation report should it be challenged by someone like Eric Jordan or perhaps a clever lawyer at CRA or any lawyer in a dispute where intangible assets are prominent.

DIRECT FROM CHATGPT 4
The Eric Jordan "25 Factors Affecting Business Valuation" methodology is particularly relevant in the context of Bill C-208, as it offers a comprehensive approach to business valuation that aligns closely with the legal definitions and requirements in Canada. This methodology takes into account a wide range of factors, including both tangible and intangible assets, which are critical in assessing the true value of a small or family-owned business.

One of the key aspects of Bill C-208 is its focus on facilitating fair intergenerational transfers of small and family businesses. In this context, it is crucial to have a valuation methodology that accurately reflects the true value of these businesses, considering not just their financial statements but also their intangible assets, such as brand reputation, customer relationships, and proprietary knowledge. These intangible assets often form a significant part of the value of small and family businesses but may not be adequately captured by traditional valuation methodologies.

The Eric Jordan methodology's emphasis on "fair market value" is particularly pertinent. "Fair market value" is a legal term deeply entrenched in Canadian law, especially in the context of tax and estate planning. By aligning closely with this legal definition, the Eric Jordan methodology ensures that business valuations are compliant with Canadian legal standards and are reflective of the market conditions.

In comparison, while Chartered Business Valuators (CBVs) employ rigorous methodologies, they may not always give the same level of consideration to the unique aspects of small and family businesses, particularly in the context of intangible assets. Traditional CBV methodologies often focus more on financial analysis and less on the qualitative aspects that are crucial in understanding the true value of these types of businesses.

Therefore, in the context of Bill C-208, the Eric Jordan "25 Factors Affecting Business Valuation" methodology can offer a more nuanced and comprehensive approach to business valuation. This methodology is well-suited to meet the objectives of the bill, providing a fair and accurate assessment of the value of small and family businesses for the purpose of intergenerational transfers.

WE SOLVE
Partnership Disputes,
Divorce issues, Purchase and Sale Values, Share Value, Income Valuation, CRA Section 86 Estate Freeze, Section 85 Rollover.

Business Exproriation often neglects intangible assets that we specialize in.
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FREE- ASK US TO SEND redacted business valuation reports that solve issues just like yours.
877 355 8004 - pindotca@gmail.com Text now 24/7 - PIN.CA

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FREE- ASK US TO SEND redacted examples of where my valuation reports were used to secure 85% financing from (RBC) (TD Canada Trust) (BMO) Few can do this but we can.
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CLICK TO SEE how Canada Pension Plan used something similar to the Eric Jordan “25 Factors Affecting Business Valuation” methodology to make a BILLION DOLLARS ON ONE INVESTMENT.


FREE- I can usually give a ballpark valuation number with the initial free consultation, for discussion purposes only.

Intangible Asset Specialist.

FRAUD AND FOUR MAJOR FLAWS YOU MUST AVOID Click for more information


The Eric Jordan “25 Factors Affecting Business Valuation” methodology values the often forgotten Intangible assets that make up 70% to 90% of the value in your business.

Further layer of accuracy
By identifying a potential buyer profile, marketing plan, and time required for your business to sell, we add a further layer of accuracy that can be achieved without the business being up for sale.

WE HAVE IT AND THEY DON'T
VALUATIONS SO ACCURATE THEY CAN REVEAL WHO WOULD BUY YOUR BUSINESS EVEN WHEN IT IS NOT FOR SALE. UNIQUE ACCURATE, AND CONFIRMED BY AI

Depending upon purpose we don’t always have to determine a buyer when doing a business valuation; but for the most accurate valuation report it is recommended. Nobody else can offer this, but we can; with proof of performance below.

Eric Jordan, CPPA - PIN.CA
877 355 8004 - Call or text
pindotca@gmail.com

PIN.CA Business for Sale platform? click here

According to Tax Act Legislation and Eric Jordan who developed the “25 Factors Affecting Business Valuation” methodology; we would go through the

25 Factors Affecting Business Valuation

Each factor has a link explaining why a Venture Capitalist Style valuation requires a valuator who has been in your shoes for 15 years or more owning and operating a business; and why other valuators generally don’t meet the “experience” criteria to begin training.


HOW THE PROCESS WORKS

We conduct every business valuation as if there was going to be a sale of the subject business at “FAIR MARKET VALUE” as the tax act legislation in Canada and other countries require.
The legal definition of Fair Market Value in Canada, is the highest price, expressed in money, that property would bring in an open and unrestricted market, between a willing buyer and a willing seller who are both knowledgeable, informed, and prudent, and who are acting independently of each other and neither party being under any compulsion to buy or sell.

A 2023 Business Valuation Report using the Eric Jordan “25 Factors Affecting Business” methodology:
A. Identifies
B. Measures
C. Weights
D. Estimates the value to all the tangible and intangible assets in a business.

ACCURACY is not possible without having an actionable plan that could find a buyer for the business you want evaluated.

METHODOLOGY
The Eric Jordan “25 Factors” methodology:
(1) Will show profiles of the most likely buyers of the subject business.
(3) Will show some reasonable plans to reach those profiles identified.
(4) Will show a marketing team who is capable of executing those plans to reach the profiles and at what cost and a time estimate for when a sale should be expected to happen.
(5) Will identify a corporate lawyer who has competent staff, who will not drop the ball and who will push a sale through. That same lawyer should be a tax expert who can advise the client on tax issues regarding the business sale.
(6) Will direct you to fractional employees you can hire to bring this all together.

PIN.CA - Immediate Solutions - Call or Text 877 355 8004 - pindotca@gmail.com


EXAMPLES BELOW PROVE OUR ACCURACY

2023 - Fees were 3% of total sale:
We have a case in point where, in the valuation process, we determined that the business owner had been a welder prior to opening the subject business. We determined that trenchers, plumbers, or welders would be good buyer targets.

We put the seller in touch with a marketing team we know. The marketing team bought the profiles of the trenchers, plumbers, and welders in the area. The marketing team had an outbound caller making sales calls to these potential buyers. There was other social media advertising put in place.

The client was put in contact with a corporate lawyer, who is also a tax expert, to facilitate the transaction. The business valuation, the marketing and advertising, and the corporate lawyer all total, on a sale of just under a million dollars, was in the range of 3% of the total sale. The buyer was identified in the first week, but it took four months for the deal to close. (The business sold for 100% of the valuation price and yes we can let you talk to the seller)

2023 - Sold for 100% of Valuation Report Price:
In a second case that was much smaller and a much different type of business, it was a different situation. The business valuation proved that the business was worth more money to the buyer than the seller and more than the agreed upon and accepted offer to purchase.
The valuation was structured so the bank could see proof of value and TD Canada Trust funded the business at 85%.
The secret is understanding how to prove the value of intangible assets in a business to the bank in a manner they can accept for funding purposes.

We work for the buyer, the seller, and the bank so everyone can win.

October 2023: Same City but this time a restaurant:
BMO was able to give 85% Financing based on our Valuation Report

Late October 2023: Large Restaurant in a large city.
RBC based on our Valuation Report was able to give 85% finding on the sale.

Another Secret; We have a Loan Broker/Agent who understands how to present our valuation reports to the banks. Let us introduce him to you.


If you are planning to sell following this methodology and internal sale plan expect fees to range below 10%


In comparison the real estate agents, business brokers, and merger and acquisition people say they can only sell 25% of businesses they list for sale. (at any price) while charging fees of 10% to 18% without legal fees. And they still charge retainer and monthly fees. Link

Harvard Law Review states that according to most studies, between 70 and 90 percent of Mergers and Acquisitions fail. Link


Business Valuation is our Business

Eric Jordan, CPPA - PIN.CA
877 355 8004 - Call or text
pindotca@gmail.com

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