Business Valuation Q&A with Eric Jordan, CPPA
Why the 25 Factors and 5 Senses methodology is practical, law‑aligned, and defensible in Canada.
Introduction
When you need to know what your business is worth — and you need that number to stand up in court, in negotiations, or under review — you don’t want guesswork.
I’m Eric Jordan, CPPA, an International Business Valuation Specialist with nearly three decades of experience valuing companies across Canada and beyond. Most of the valuations I do are for small and mid-sized privately owned businesses, but I’ve also completed valuations running into hundreds of millions of dollars.
My background combines real‑world business ownership, advanced valuation methodology, and the use of AI‑assisted documentation to locate and compile supporting case law — legal precedents that help prove and defend your business’s value when it counts most.
Q&A
Common questions about business valuation.
How much is my business worth?
Usually, within about 15 minutes of our first conversation, I can give you a ballpark estimate and a quote for a complete, defensible valuation or appraisal.
What experience should a business valuator have?
Think of it like this: You wouldn’t trust a pilot who’s never flown a plane, a surgeon who’s never held a scalpel, or an art restoration specialist who’s never touched a real canvas. Valuing a business is no different; hands‑on ownership/operational experience matters.
What affects the value of a business today?
Every valuation is grounded in the 25 Factors Affecting Business Valuation framework — purpose, financial performance, risk, scalability, systems, market position, management capability, opportunity, and sustainability.
How does AI fit into your valuation process?
AI documents the proof — it helps identify and compile relevant case law and precedents that support the valuation.
How long does a valuation take?
Most valuations are completed within 10 business days, depending on complexity and information availability.
How much does it cost?
Fees typically range from $1,500 to $15,000, with an average near $3,500 for many private businesses.
What if I just need a quick opinion?
We can start with a preliminary assessment. If you proceed later, this work rolls into the full report.
Why choose a valuation from Eric Jordan, CPPA?
Credible, experience‑based, and defensible — designed to withstand professional, financial, or legal review.
Can you provide Sharia‑compliant valuations?
Yes. We deliver Sharia‑compliant valuations aligned with Islamic finance principles, with the same transparency and evidentiary documentation as all reports.
Foundation & Methodology
Core principles behind Eric Jordan’s 25 Factors & 5 Senses methodology.
How much is my business worth in Canada?
The 25 Factors and 5 Senses reflect Canadian practice around fair market value, covering both tangible and intangible assets in a way that’s practical and defensible.
What valuation method is best for my company?
The framework captures value beyond formulas, including trust, management, and market presence.
How can I increase value before selling?
Strengthen intangibles (loyalty, management capability, systems). The 5 Senses approach creates a practical roadmap.
What factors most influence value?
Consistent earnings, management strength, customer loyalty, scalability — all weighed within the 25‑Factor framework.
Valuation Process & Preparation
What’s involved, timing, cost, and how to prepare.
What is the process and timeline?
Typical turnaround is 10 days to 2 weeks, after collecting financials and background information.
How much does a valuation cost?
Generally $1,500–$15,000; many average about $3,500.
What information do I need to provide?
3–5 years of financials/tax, ownership structure, key customer/supplier info, and major agreements.
How do I prepare financials?
Normalize financials, adjust owner compensation to market, separate personal expenses, and document non‑recurring items.
Legal & Regulatory
CRA readiness, FMV concepts, and professional practice.
Will the valuation be defensible to CRA or in court?
The framework is fact‑based and transparent, aligned to Canadian practice around FMV.
How is fair market value determined?
Notional price between informed, prudent parties at arm’s length with no compulsion.
How does Canadian tax affect valuation?
Reorgs, estate planning, and rollovers often require careful valuation aligned with applicable requirements.
Valuation Details & Industry Context
Multiples, projections, comparables, and operational factors.
Which multiples are typical?
Varies by sector, size, growth, and risk. Normalize earnings and anchor to qualitative risk.
Are forecasts used?
Yes — when supportable with evidence‑based assumptions.
How do you benchmark comparables?
Private comparables can be opaque; triangulate with normalized financials and qualitative factors.
Negotiation & Risk Assessment
Resolving price gaps and surfacing hidden risks.
What if buyer and seller can’t agree?
A structured, evidence‑based valuation creates a shared factual baseline; earn‑outs can bridge gaps.
What hidden risks affect value?
Owner dependence, customer concentration, legal issues, outdated assets — systematically identify and address them.
Financing & Succession
Using a valuation for capital and planning smooth transitions.
Can a valuation be used for financing?
Yes — decision‑makers look for clear methodology, credible assumptions, and fit‑for‑purpose reporting.
How does succession planning impact valuation?
Buy‑ins, buyouts, and transitions benefit from transparent, well‑supported valuations to reduce disputes.