Court-Accepted, Case-Law-Backed Expropriation Valuations
Detailed analysis and methodology for business valuation in expropriation cases, including the identification and valuation of intangible assets using Eric Jordan's proven, court-accepted approach.
Modern expropriation valuations routinely fail because the majority of economic value is no longer tangible. Intangibles must be identified before they can be quantified using structured methodologies like the 25 Factors Affecting Business Valuation™.
The following independent global institutions provide the empirical foundation for the 68% Intangible Asset Midpoint applied in this forensic valuation. Collectively, these authorities confirm that traditional accounting models (Market, Asset, and Income approaches) systematically fail to identify the majority of modern economic value.
Primary Reference:
The Changing Wealth of Nations 2024: Managing Assets for the Future
Key Findings:
In high-income OECD economies, Intangible Capital (human capital, social capital, proprietary institutional knowledge) accounts for approximately 70% to 80% of total national wealth.
Application to this Case:
This establishes that the Intangible Residual is the primary driver of economic value. A valuation focused only on tangible assets ignores the largest component of the owner’s property.
Primary Reference:
The Rise and Rise of the Global Balance Sheet: How Wealth and Debt Have Grown Faster Than GDP
Key Findings:
Since the 1990s, investment in intangible assets (data, software, IP, operational systems) has grown ~300% faster than investment in physical assets.
Application to this Case:
Validates Factor #4 (Proprietary Systems) and Factor #15 (Proprietary IP) as high-weight value drivers, confirming value migration from physical infrastructure to intellectual systems.
Primary Reference:
Global Wealth Report 2024 & 2025
Key Findings:
Global assets exceed USD $500 trillion and non-financial assets increasingly depend on intangible networks: connectivity, reputation, and trust to maintain market value.
Application to this Case:
Supports the Five-Senses Inspection methodology by demonstrating that customer experience and trust (Factor #25) are quantifiable and defensible economic anchors of private business value.
Primary Reference:
OECD Compendium of Productivity Indicators (2025 Edition)
Key Findings:
Knowledge-Based Capital (KBC) is the primary driver of modern productivity. Traditional financial statistics “hardly detect” the organizational and reputational assets responsible for revenue generation.
Application to this Case:
Provides legal justification for forensic intervention: where accounting fails to identify property, expert methodology is required to satisfy judicial standards of completeness.
Based on OECD and Global Financial Reporting Standards (2026)
OECD definition: Intangible assets that provide future economic benefits, including:
Captures the “missing” value ignored by tax-based accounting systems.
Global standard: Assets subject to unanticipated or premature write-downs, devaluation, or conversion into liabilities.
In expropriation scenarios, physical assets frequently become stranded when the operating environment is removed, reducing their value to salvage.
Forensic definition: The operational “DNA” of a business — the integration of proprietary systems and customer trust enabling sustained returns above industry averages.
The core asset that must be restored to make the owner whole.
World Bank standard: The value remaining after subtracting all tangible and natural resource assets.
Quantitatively measured through factor-weighting rather than assumed goodwill.
Forensic definition: The risk that a business’s core value driver is being displaced by superior delivery systems or technologies.
Determines whether the owner is losing a growth asset or a declining one at the time of taking.
Multiple independent sources place the total value of global assets (tangible and intangible combined) in a range exceeding USD $500 trillion, including real estate, infrastructure, machinery, financial capital, intellectual property, proprietary systems, data, brands, contractual rights, and institutional know-how.
What matters more than the headline number is composition.
Over the last five decades, global asset value has undergone a structural inversion: approximately 65% to 75% of total global asset value is now intangible (68% commonly cited as the midpoint).
In the 1970s, tangible assets dominated enterprise value.
In 2026, intangibles are the value.
Expropriation valuations often rely almost exclusively on Market, Asset, and Income approaches developed when physical capital was the dominant value driver. These approaches are financially descriptive, not forensically diagnostic.
When 68% of value is missing from the analysis, the result is not conservative — it is flawed.
Intangible assets cannot be valued by assumption. They must be identified, measured, weighed, and stress-tested. That is the function of my proprietary 25 Factors Affecting Business Valuation, applied together with the 5 Senses Inspection Report.
This is not guesswork. It is evidence.
The Eric Jordan “25 Factors Affecting Business Valuation” is applied exclusively by Eric Jordan, CPPA. Call toll-free: 877-355-8004.
Over 50 peer-reviewed studies across neuroscience, aviation safety, and surgical decision-making confirm the existence of the Gut-Brain Axis — a second decision system developed only through long-term, high-stakes hands-on experience.
An expert who has never long-term owned and operated a business at ground level may lack the biological hardware required to detect intangible value — regardless of spreadsheet sophistication.
My methodology integrates validated expert intuition with structured forensic factors, producing conclusions that are explainable, testable, and defensible under cross-examination.
If the valuation cannot identify the majority of the owner’s property, it cannot satisfy the common-law requirement that the owner be made whole. A number without an explanation is not proof.
That gap is precisely where courts require expert evidence.
Traditional Market, Asset, and Income approaches were built for brick-and-mortar. They fail in 2026 because they cannot measure the forensic reality of modern business.
A True Story of the “Missing 68%”
A city offered a family-run convenience store owner $100,000, treating the business as shelving and old financials. Applying the 25 Factors Affecting Business Valuation, the forensic valuation was $528,000.
Conclusion: evidentiary blindness leads to under-compensation and forces owners into coercive settlement outcomes.
This is not just data — it is neuroscience of expert intuition. It takes 10 to 15 years of hands-on experience to develop the Gut-Brain Axis that gives pilots, surgeons, and veteran experts a “second brain.”
An accountant who has never long-term owned and operated a business at ground level may lack the biological hardware to detect intangible value — regardless of spreadsheet sophistication.
My methodology integrates validated instinct with structured forensic factors to produce defensible conclusions under cross-examination.
Parallel: accounting-based valuation hides intangibles; forensic valuation forces transparency case-by-case as evidence proves outcomes.
The Act is best understood as a tension between the Crown’s power to take land and the owner’s right to be “made whole.”
This is the area most relevant to professional valuation and appraisal work. Compensation is calculated as the sum of:
The Act explicitly acknowledges the David vs. Goliath nature of expropriation proceedings.
Accounting records the past. Business valuation explains economic value — including the intangible assets that often drive performance. My work is designed to be collaborative, transparent, and court-ready.
The Eric Jordan “25 Factors Affecting Business Valuation” (Call: 877-355-8004) is a structured method used to identify, measure, and explain both tangible and intangible value drivers. The Eric Jordan “5 Senses Inspection Report” (Call: 877-355-8004) documents operational reality through direct observation.
I hear all versions of the facts. Parties may meet with me together or separately. The objective is completeness: gather, test, and document the facts that can be presented to a court or tribunal.
If you want clarity without unnecessary financial drain, call Eric Jordan toll-free: 877-355-8004.