25 Factors Affecting Business Valuation

History

There is no math or accounting formula that measures and weighs the value of history in business valuations. In the absence of any formula there can only be experience.

It takes a lot of experience for the stone mason to know where to hit the rock and how often and with what tool and with what force; to have the perfect building stone drop off. An entrepreneurial business owner operator with enough relevant experience is going to be able to chip away objectively at the history in a company, know what questions to ask, and be able to make fair and balanced judgments on what weight to give the unique history of the subject company's "fair market value" as required by the Canada Income Tax Act Policy Paper.