25 Factors Affecting Business Valuation

Liquidity

Math and accounting systems can give an official position on the point that a company may no longer be liquid. The experienced entrepreneurial valuator will make a judgment call based on experience, if they think the subject company is at liquidity risk. There can be a negative score in some cases.

An experienced entrepreneurial valuator must look further and deeper than the basic face value figures that are presented. Given their personal experience they must weigh up the overall aspects of every resource that the company has. To ascertain if there is a liquidity situation or not.

An experienced entrepreneurial valuator can go above and beyond to identify new or missed opportunities within liquidation. Acquihire (where the workforce transfers to another company) can save a lot of termination costs.

Acquihire is relatively unknown outside of experienced entrepreneurial valuators and venture capitalists.

This is how an experienced entrepreneurial valuator meets and exceeds the requirements in the Canadian Income Tax Act Policy Paper.