25 Factors Affecting Business Valuation

Risk

There is always risk and the entrepreneurial valuator with sufficient prior business owner operator experience is well suited through experience to determine risk. They almost always have personal experience with the negative effects of risk that went bad. If you have never experienced the pain of failure, it would seem impossible to judge risk. A bank lender will often put a new employee in the collections department first to help them understand risk and the pain associated with it.

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”.