Business Valuation for Partnership Disputes/Shareholder Disputes/Director Disputes “Fair Market Value” in Victoria, British Columbia
Court-Accepted, Case-Law-Backed Business Valuations for Disputes in Victoria
Eric Jordan, CPPA
International Business Valuation Specialist
I welcome being cross-examined as an expert witness for the court in Victoria.
Fee Range: $1,500 – $15,000 | Basic Average: $3,500
Free 15-minute introductory consultation with a ballpark business valuation estimate for Victoria businesses.
Business Valuation for Partnership Disputes / Shareholder Disputes / Director Disputes “Fair Market Value”
Appendix: Bibliography of Authority Regarding the Identification and Valuation of Intangible Assets
The following independent global institutions provide the empirical basis for the 68% Intangible Asset Midpoint used in this forensic valuation. These sources suggest that legacy accounting models (Market, Asset, and Income approaches) systematically fail to identify the majority of modern property value.
The World Bank Group
Primary reference: The Changing Wealth of Nations 2024: Managing Assets for the Future.
Key findings: In high-income OECD economies, the World Bank’s “Comprehensive Wealth” index estimates Intangible Capital (human capital, social capital, proprietary institutional knowledge) at approximately 70%–80% of total national wealth.
Application to this case: The “Residual” (what cannot be touched) is the primary driver of economic value. A valuation focused only on tangibles ignores the largest component of the owner’s property.
McKinsey Global Institute (MGI)
Primary reference: The Rise and Rise of the Global Balance Sheet: How Wealth and Debt have grown faster than GDP.
Key findings: Since the 1990s, investment in Intangible Assets (data, software, IP, and operational systems) has grown about 300% faster than investment in physical assets.
Application to this case: Validates Factor #4 (Proprietary Systems) and Factor #15 (Proprietary IP) as high-weight drivers, confirming that value has migrated from the “Iron” to the “Intelligence.”
UBS / Credit Suisse Global Wealth
Primary reference: Global Wealth Report 2024 & 2025.
Key findings: Global assets exceed USD $500 trillion and increasingly depend on “Intangible Networks” (connectivity and trust) to maintain market price.
Application to this case: Supports the 5-Senses Inspection methodology and treats Customer Experience / Trust (Factor #25) as a quantifiable economic anchor for private business value.
Organisation for Economic Co-operation and Development (OECD)
Primary reference: OECD Compendium of Productivity Indicators (2025 Edition).
Key findings: Defines Knowledge-Based Capital (KBC) as a primary productivity driver and notes that traditional financial statistics “hardly detect” organizational and reputational assets.
Application to this case: Justifies forensic intervention. If traditional statistics miss these assets, expert evidence must use a methodology capable of identifying all property at fair market value.
Appendix: Glossary of Forensic Valuation Terms
Based on OECD & Global Financial Reporting Standards (2026)
To ensure clarity in the application of the 25 Factors Affecting Business Valuation, the following terms are defined according to current international economic standards.
Knowledge-Based Capital (KBC)
Definition: OECD: Assets that lack physical embodiment but provide future economic benefits, including computerized information (software/databases), innovative property (R&D, patents, trademarks, original designs), and economic competencies (firm-specific human capital, networks, organizational know-how).
Forensic application: Technical umbrella for the “Missing 68%.” The methodology isolates economic competencies that tax-based accounting is designed to ignore.
Stranded Assets (Assets-at-Risk)
Definition: Global standard: Assets suffering unanticipated or premature write-downs, devaluations, or conversion to liabilities.
Forensic application: In expropriation, physical equipment can become stranded the moment the location is taken. Without transferable Operating Spirit, equipment value can drop to scrap even if book value suggests otherwise.
Operating Spirit (The “Going Concern” Core)
Definition: Forensic: The “DNA” of a businescombining Factor #4 (Proprietary Systems) and Factor #25 (Customer Trustthat enables returns above industry norms.
Forensic application: The core operational asset that must be defined under fair market value.
Intangible Residual
Definition: World Bank: Value remaining after subtracting tangible assets and natural resources.
Forensic application: Primary driver of wealth in 2026, quantified through factor-weighting to avoid guesswork around “goodwill.”
Technical Obsolescence Risk (Factor #7)
Definition: Forensic: Risk that a core value-driver is being replaced by a superior delivery system (e.g., brick-and-mortar vs. digital platforms).
Forensic application: Helps the court assess whether a business is in high-growth intangible territory or heading toward stranded tangible decline.
Partnership Disputes - British Columbia, Victoria
In British Columbia, partnership disputes arise when business partners disagree
over ownership, value, profit sharing, buyouts, or dissolution of a business.
Business valuation is often the core issue in resolving these disputes.
Partnership disputes are commonly governed by:
- The Partnership Act (BC), and/or
- The partnership agreement (if one exists)
When no agreement exists or the agreement is unclear
valuation evidence becomes critical.
Common Partnership Dispute Scenarios Involving Valuation
Business valuation is typically required when partners dispute:
- Buyout of a partner’s interest
- Exit or forced removal of a partner
- Business dissolution and asset division
- Unequal profit distributions
- Allegations of oppression, mismanagement, or unfair dealing
- Death, disability, or retirement of a partner
Even small partnerships can involve significant valuation complexity.
What Is Being Valued?
Depending on the dispute, valuators may be asked to determine:
- Fair market value of the partnership
- Value of an individual partner’s interest
- Goodwill (enterprise vs. personal)
- Retained earnings and undistributed profits
- Hidden or diverted income
- Related-party transactions
Valuation must reflect the economic reality, not just the books.
Role of the Partnership Agreement
If a partnership agreement exists, it may specify:
- Valuation method
- Valuation date
- Buy-sell formulas
- Discounts (or no discounts)
If no agreement exists (very common):
- Courts rely heavily on independent valuation evidence
- The Partnership Act provides default rules
- Fairness and reasonableness become key considerations
Role of Business Valuation Experts
In partnership disputes, valuation professionals are retained to:
- Determine fair value or fair market value
- Normalize earnings and adjust financial statements
- Identify oppression or income suppression
- Quantify damages or economic loss
- Prepare litigation-ready, court-defensible reports
Valuation reports are often used in:
- Negotiations
- Mediation or arbitration
- Supreme Court of British Columbia proceedings
Key Principle
In partnership disputes, courts aim to reach a fair economic outcome based on
the true value of the business and each partner’s interest at the time of dispute.
Business valuation evidence often decides the outcome.
In Simple Terms
- Partnership disputes frequently turn on valuation
- Agreements matter but many disputes involve no clear formula
- Goodwill, profits, and fairness are key issues
- Strong, independent valuation evidence is essential