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Valuation and Appraisal to Support Litigation
Qualified Expert Witness
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BUSINESS VALUATION AND APPRAISALS
CERTIFIED BY ERIC JORDAN, CPPA
Valuation of Your Winnipeg Business
Generally $1,000 to $5,000.
WinnipegBusinessValuationAndAppraisal.com
1-800-606-0310
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WE WIN IN COURT |
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Need a Bulletproof Business Valuation?
"I greatly appreciate the work Eric did on the Valuation of my company. It stood up in court. (April 2017)
The Judge soundly admonished the Chartered Business Valuator who tried to contradict Eric's valuation. If
someone needs confirmation and wants to speak to me, Eric has permission to release my number." (Julian)
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Second Opinion on a Questionable Valuation?
We find that most small
business valuators concentrate on Asset, Market, and Income
approaches developed in the 1970’s. These are generally easy to
defeat in 2017 as most businesses are now made up of 50% or more
in “intangible assets” these valuators neglect, or have no
means, to properly measure.
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25 FACTORS AFFECTING VALUE |
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This is the key Point: If someone is presenting or proposing a valuation without taking these factors into consideration, the valuation number is likely to be misleading and almost certainly not accurate for a small business.
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- Financials
- Return on Investment
- How has R&D been accounted
for?
- Shareholder Agreement (if one
exists)
- Value of Employees
(cost of
recruitment and training as a group)
- Client Base and cost to
rebuild
- Value of Supply Chain
- Value of Distribution Network
if one exists
- Internet Presence and Use
(social network)
- Dominance if any in the
marketplace
- Knowledge Base of Owner and
Employees
- Processes and Procedures
Documentation
(How well are all aspects of the
company documented?)
- Industry Averages
- Lease Terms
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- Leasehold Improvements
- Equipment
- Inventory
- Risk
- Currency Fluctuations and
Geopolitical Considerations
- Opportunity
- Liquidity
- Leverage - Cost of money.
Is leverage applicable and if so at what risk?
- Minority Interest (if
applicable)
- Special Interest Purchaser
(Partners are also special interest purchasers as they
have more knowledge, interest, and opportunity, with
less risk than regular buyers.)
- How well is the
business/practice expected to function with changes in
management? (if applicable)
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Return on Investment is Always My First and Last Consideration
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How Financials Can Be Deceiving:
(This is the kind of practical solution offered by our system.)
Accounting for tax purposes is totally different than interpreting financial statements for Business Valuation Purposes. Let us give you just one example: (Think Partnership or Divorce)
For tax purposes R&D is an expense in the year the R&D occurred.
For the purpose of an accurate valuation the R&D should be amortized over a period of 5 to 12 years. HUGE DIFFERENCE.
The financials must be normalized to reflect proper treatment of R&D. If we didn’t do this a company could spend 95% (or all) of the profit on R&D and might successfully claim the company to be worth very little for a short period of time. Perhaps not fraud but certainly manipulation, depending upon the purpose. (Divorce or other partnership)
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Eric Jordan, President |
Free consultation.
Call or email now!
1-800-606-0310
eric@pin.ca |
Profiles of some 2016 clients:
Most are in Edmonton, Calgary, Vancouver or Toronto
- Multi Million Dollar Distribution Business- Valuation for purpose of sale.
- Plumbing and Gas Business- Valuation for purpose of divorce proceedings.
- Multi Million Dollar Eco Tour Business- Valuation for purpose of expansion loan.
- Law Practice- Valuation for purpose of sale.
- Lawn and Yard Maintenance business- Valuation for purpose of divorce proceedings.
- Art Studio Franchise- Valuation for accounting purposes and CRA requirements.
- Plumbing Business- Valuation for purpose of divorce proceedings.
- Irrigation and Snow Removal Business- Valuation for purpose of divorce proceedings.
- Large Retail Bakery- Valuation for purpose of sale to employee over 5 years.
- Software Distribution rights in Canada- For Australian Parent Company (Agency Dispute.)
- Janitorial Supply Business- Valuation for purpose of partnership dispute.
- Tree Pruning and Lawn Business- Valuation for purpose of sale.
- Battery Distribution Business- Valuation for purpose of sale.
- Software Testing and Quality Assurance Company- Valuation for purpose of partnership dispute.
- Blind Manufacturing and Installation Company- Valuation for purpose of legal action in partnership dispute. This went to court on May 27, 2016 and resulted in our client receiving over 80% of the amount he sued for.
Client is available as a reference.
- Classic Car Renovation Business- Valuation for multi-million dollar lawsuit in Florida launched by Canadian partners.
- Dance Studio- Valuation for purpose of establishing value for pending sale.
- Cross fit GYM- Valuation for purpose of establishing a viable price for buyer to offer.
- Jim’s Burger Location in US- Valuation for purpose of divorce proceeding.
- Two Wholesale Bakeries- purpose of the valuation was to find values so the companies could merge.
- Sign Manufacturing Business- Valuation for purpose of a minority shareholder leaving company.
- Landscaping and Excavating Company- Valuation for purpose of divorce.
- Day Care Facility- Valuation to support litigation and negotiation for damages inflicted by City in zoning error.
- Accommodation Business- Valuation for purpose of sale.
- Smoker Operation (8 pigs at a time in size)- Valuation for tax purposes.
- Flooring Business- Valuation for purpose of sale.
- Retail Wine Business (Franchise concept)- Valuation for purpose of sale.
- Prop Business- Valuation for purpose of partnership buyout.
- Computer Retail- Valuation for purpose of potential purchase.
- Music Composer Business (original soundtracks for documentary movies and videos)- Valuation for purpose of divorce proceedings.
- Two Pharmacy Locations- Valuation for purpose of sale consideration.
- Luxury Bed and Breakfast combined with Events Business- Valuation for the purpose of sale.
- Pool Building Company- Valuation for purpose of sale to family.
- Automotive Related Business- Valuation for purpose of sale.
- Specialized Manufacturing Firm within Printing Industry- Valuation necessary as someone expressed interest in purchase.
- Daycare- Valuation for purpose of possible sale.
(Interested Purchaser came forward)
- Focused Builder- Valuation for purpose of establishing value for employee buy in.
- Software Maintenance Contractors- Valuation for purpose of possible merger. (many millions of dollars)
- Chiropractic Practice - Valuation for purpose of buy in.
- Wholesale Food Business- Valuation for purpose of settling partnership dispute.
- Accounting Firm- Valuation for purpose of divorce.
- Call Centre- Valuation for internal purposes.
- Hair Salon- Valuation for purpose of employee buy in.
- Convenience Store and Gas- Valuation for purpose of lease dispute.
- Specialized Builder of Restaurants- Valuation for purpose of employee buy in.
- Wholesale Food Manufacturing and Distribution- Valuation for purpose of partnership buyout.
- Retail Sporting Goods Franchise- Valuation for purpose of purchase.
- Diesel Repair Shop- Valuation for purpose of partnership dispute.
- Cellular Repair Company- Valuation for purpose of internal planning.
- Roofing Company- Valuation for purpose of partnership consideration.
- Upscale Personal Services Company- Valuation for purpose of internal planning.
- Specialized Wheel Business- Valuation
for purpose of sale.
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A wise man once said, "If you want more business,
offer more service."
FOR A LIMITED TIME We
are offering up to $3,500 in additional services
to each of our
valuation clients at no additional cost!
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If your
objective is to sell your business we can offer you free
advertising on www.pin.ca which is one of Canada's oldest,
independent business-for-sale-by-owner websites (established
1998).
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We can also
give your business local, regional, national and international
advertising exposure on our data base system, optimised for
maximum search engine results.
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If you can't
use these services yourself you can pass the offer
along to family or friends.
(Certain restrictions may apply.)
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Professional Scope of Work:
In order to be compliant with CPPA
and USPAP - Canadian Personal Property Appraisers and Universal
Standards for Professional Appraisal Practice; ALL Appraisals,
Valuations and Evaluations must follow the following format:
Appraisal Report; Summary; Fair
Market Value Ongoing Operation (or equivalent); Conditions and
Limitations of Appraisal Report; Certification of Report;
Purpose of the Report; Definitions of Value; Basis of Appraisal;
Effective Date of Valuation; Limitations on Business being
Evaluated; Method of Valuation; Description of Business; Factors
Affecting Value; Conclusion; CURRICULUM VITAE.
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JUDGES - LAWYERS - PARTNERS IN DIVORCE PROCEEDINGS
PARTNERS IN BUSINESS
DISPUTES - BUSINESS BUYERS BUSINESS SELLERS - CANADA
REVENUE AGENCY
Bring the judge a valuation
based on experience and logic.
WHAT KIND OF BUSINESS VALUATION DO YOU NEED?
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FAIR MARKET VALUE - ONGOING OPERATION
• FAIR
MARKET VALUE - ASSETS IN PLACE BUT NOT OPERATING
• ORDERLY
LIQUIDATION
• ORDERLY
LIQUIDATION VALUE OVER TWO TO FOUR MONTHS
• INSURANCE
VALUATION
Are you insured for replacement costs of
rebuilding a business after a loss including Intangible
Assets? Have your insurer acknowledge and accept
valuation prior to buying insurance.
• Value of
recruitment and training of a group of employees to the
position of cohesively working together as they were
prior to the point of interruption, damage or loss.
• Value of rebuilding client base to where it was prior
to the point of interruption, damage or loss.
• Value
of reimplementation of systems and procedures in place
prior to the point of interruption, damage or loss.
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LOANS:
Banks are losing a lot of business these
days to lenders who understand intangible assets. Define
the value of your intangible assets. If your bank is not
considering the value of your clearly defined
intangibles you need to find an new lender who is better
educated in your business model.
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ABOUT US:
Our Valuations are generally half
price or less than others. This is possible because we
are more focused on Small Business Valuations and not
working for Corporations.
The niche we serve is
Small Business Valuations with special expertise in
understanding intangible assets that are often missed
as they don't show up on the Balance Sheet. In addition
to Financial Statements I take into account; processes,
procedures, value of supply chain, value of distribution
network, knowledge base of owner and employees, value of
employees (cost of recruitment and training as a group,)
value of client base, Internet presence and use,
documentation and risk.
The rate of return on the
real
Normalized Net Income is always the first and last
consideration.
Value to who? The bank, the seller,
the buyer; our valuations can include more than one.
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Business Valuation
Save
Thousands of Dollars in Unnecessary Fees!
Generally $1,000 - $5,000. Free
Consultation. |
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True Market Value is More Than 'By The Book’
Knowledge is power when you want
to buy or sell a business, establish value for financing or
insurance, dissolve a partnership or a marriage, or for tax
planning and succession planning.
The true market
value of a business is rarely what the books say. Our
multifaceted, proprietary method for assessment and
analysis reveals the true market value of a business - a
value buyers are comfortable accepting.
Is the value of your business
in dispute?
Contesting
a valuation in court rarely satisfies both parties. One
wins, the other loses ...and both end up with huge legal
bills. Lawyers and valuators can easily cost each side
$10,000 - $20,000!
We offer a better way - a more
comprehensive evaluation using professional assessment
tests from three different industries. Dozens of disputes
have been resolved with our service. The results are ready
faster and cost far less, often only $1,000 - $2,500. Best
of all, the valuation is usually acceptable to all parties.
For a realistic
business valuation that improves the marketability or
position of your business, call me today for a free
consultation.
Eric
Jordan, President of Pin Services Ltd., Business Valuations
and Sales
eric@pin.ca
(250) 386-0108 toll free: 1-800-606-0310 |
Do you know what your business is
worth?
Do you need to establish value for
financing?
Do you want a valuation written in
plain language?
You'll work directly with Eric
Jordan, the company owner, who has more than 40 years of
business experience. |
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HOW TO ESTABLISH
VALUE FOR TAX, SALE, OR OTHER LEGAL ISSUES. |
HELPING BUYERS AND SELLERS
UNDERSTAND VALUE
SELLERS:
Have a defense with a list of reasons to support asking price.
BUYERS:
Understand
what you are buying and why the price is fair or not.
GROWTH:
Understand
where the value is in your business so you can focus your growth
on areas that are increasing in value.
VALUE FOR DIVORCE:
You and your lawyer may want an inexpensive insight to help you
negotiate.
INSURANCE NEEDS:
How much insurance do
you really need?
TAX NEEDS:
Produce a
list of reasons to support a position.
LOANS:
Present a
clear picture to your lender of the assets your company owns;
you may need clear identification of intellectual property and
list of supporting reasons. You need to prove that hard assets
represent only part of your value. |
VALUATION EXPLAINED:
People assume a buyer
will be able to understand what they are selling and how
profitable your business is, based upon balance sheets and
profit and loss statements. THEY DON’T. Most people do not
understand financial documents. They may think from looking at
your statements that you are not making much money. Financial
documents and tax returns are (or should be) prepared to show
your business making the least amount of money possible; thereby
enabling you to pay the least amount of tax possible. NOT
EXACTLY THE SORT OF THING THAT WILL IMPRESS A BUYER WHO DOES NOT
UNDERSTAND.
This is why MOST PEOPLE need a common sense
VALUATION. We take the information from your financials and find
the TRUE NORMALIZED NET INCOME OF YOUR BUSINESS to show a
prospective buyer what is really happening in your business when
the tax considerations are taken away.
All of this is done in
a way that ordinary people can understand; ordinary people like
the buyer, the buyer’s spouse, a financial backer or a banker.
Recent Value Reports include a Cheese Factory in Canada, 2 Bagel
Stores in New York near Manhattan and an Excavating Business in
the Canadian oilfields.
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OUR UNIQUE BUSINESS OPPORTUNITY:
We need analysts in Winnipeg and elsewhere; English and a second language would be an asset.
Become licensed to use our proprietary process in understanding the
25 most important Factors Affecting Value. |
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Valuation of Your Winnipeg Business
Generally $1,000 to $5,000
Call for exact pricing for your situation.
Eric Jordan, President |
Free consultation.
Call or email now!
1-800-606-0310
eric@pin.ca
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Business Valuations /
Appraisals
Certified by Eric Jordan, CPPA.
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Appraisals to Support
Litigation
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Qualified Expert
Witness |
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Examples of
How Our
Service Works...
(1) I spoke recently to the owner/former owner of a
focused Bearing and Hydraulics Supply Store. He was able
to use our value statement to help him explain what he
had for sale. Using the PIN Value Statement he was able
to sell the business to his employees as it made common
sense to them. The paperwork for the sale is done and
the sale is in progress. Owner feels his employees would
not have understood an official Appraisal or Valuation
that he estimates would have cost 10 times more than my
Value Statement. My client, the business owner, stated
to me that his accountant was impressed with the work I
did. (my
client has given me permission to give his name, phone
number and business name to qualified people)
(2)
I had a Certified General Accountant (CGA), from London,
Ontario, who owned a business. He felt he knew what his
business was worth, but wanted verification. He wanted
to know how an outside buyer would view things. We
plugged his numbers, estimates, and conclusions into my
formula and came up with $418,500. My formula and
my reasons were completely different from how he came to
his estimated $400,000 Value. This took about an hour on the phone and
another 2 hours work for me afterward – all of which I
emailed to him. The accountant now had logical reasons,
with his real numbers, to support his asking price. This
was presented in a manner common people could
understand. (client name available upon qualified
request)
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Client Examples...
1)
Eric, My accountant was impressed with your formula.
They made the necessary changes, and I used this
information to sell my business to my employees. I
could not have done this without your Value
Statement. Thanks.
(Name
available on qualified request.)
2)
An Electrical Contractor recently purchased a Value
Statement (February 2010) - They intend to sell over the
next couple of years and wanted to get an idea of value.
We provided a Value Statement the contractor was very
pleased to have. They felt our service was very good
value for the money, useful, accurate, and caused them
to think differently about how to sell their business.
(I have permission to release their name to qualified
party)
3)
Ted and Leslie Smith, who own
Viking Lodge listed on
www.pin.ca, had a Value Statement done in February 2010.
After reviewing the numbers, we received a glowing
report from both Leslie and her accountant. Leslie
stated that she sent the Value Statement, including
working papers, out to a prospective buyer. The
prospective buyer told Leslie they were pleased to have
something both clear to read and easy to understand.
This comment was echoed by Leslie's accountant; as
Leslie said, "most people can not read Financial
Statements and the Value Statement makes it clear and
easy for average people to understand.
4)
We recently had a client looking to expand their company
in the flax industry. They needed $23 million
dollars; you can see the results of that work
here.
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Eric Jordan, the founder of PIN will ask the business
owner a series of proprietary questions. The best
estimates provided will be used to create a detailed
analysis for you to share with your accountant.
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Eric Jordan,
President Pin Services Ltd.
Toll Free: 1 800 606-0310
e-mail: eric@pin.ca |
PAYMENT BY VISA,
MASTERCARD, AMERICAN EXPRESS or DISCOVER.
Visit our main website at
www.pin.ca
to browse our
business opportunities and homes for sale
by owner.
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Business Valuator Services Available Across Canada
1-800-606-0310
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REFERRALS / TESTIMONIALS
WinnipegBusinessValuationAndAppraisal.com - Appraisal, business
valuation, business evaluation, Winnipeg MB - tax issues, divorce or sale.
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