25 Factors Affecting Business Valuation

Opportunity

This is best personified by entrepreneurs like Ray Kroc. Entrepreneurs who have business owner operator experience with risk and failure are best suited to understand and measure opportunity with all its warts and shiny spots.

Our methodology uses experience to truly understand this and assign a weight as required by the Canadian Income Tax Act to determine “fair market value”.

It is our opinion that business valuations presented and accepted in the past by the courts should no longer be accepted. It is our opinion that the “parameters of the business valuation debate have permanently shifted”, because intangible assets that were previously ignored, now make up to 90% of business value.

It is our opinion and we have presented information in 25 points to prove our opinion that prior, relevant, long term, entrepreneurial, business owner operator experience is necessary to reliably and effectively value intangible assets.

“stare decisis”, The doctrine that lower courts must follow the decisions of higher courts is fundamental to our legal system. It provides certainty while permitting the orderly development of the law in incremental steps. However, stare decisis is not a straitjacket that condemns the law to stasis.

Trial courts may reconsider settled rulings of higher courts in two situations: (1) where a new legal issue is raised; and (2) where there is a change in the circumstances or evidence that “fundamentally shifts the parameters of the debate”.