Business Valuation Methodology
A modern, auditable approach that identifies, measures, and values both tangible and intangible assets—accepted by lenders and aligned with Fair Market Value requirements.
25 Factors Affecting Business Valuation
These are the drivers we use to identify, measure, and value intangible assets alongside tangible assets. Each factor links to supporting analysis in your valuation file.
5 Senses Inspection Report
A short, redacted example to illustrate structure and tone. This is the lens we use to validate tangible assets and align them with the intangibles that generate value.
| Field | Value |
|---|---|
| Date | November 26, 2025 |
| Inspector | Ben Khan – Toronto 5 Senses Inspection Report Specialist |
| Subject | Random samples of 200 graphic novel collections owned by [Redacted Name] |
Conclusion
The sensory experience—sight, smell, touch/feel—supports a rating of 10/10. Materials and storage align with quality expectations. Visuals (artwork, colour, typography, layout) create a rich, dynamic presentation that enhances value.
Why Hands-On Experience Beats Pure Accounting
We start where accountants leave off. As a Canadian Personal Property Appraiser (CPPA) and former auctioneer specializing in intangible assets, Eric Jordan applies a proven methodology that normalizes financials to Fair Market Value—as required by the Income Tax Act—then values the intangibles that actually drive performance.
What We Do Differently
- Revalue the balance sheet to today’s fair market values.
- Run an Asset Valuation when appropriate (see Debt Restructuring & Asset Valuation).
- Normalize P&L: charge required capital costs; pay owners/family at fair market rates.
- Apply the 25 Factors to recognize and price intangible assets.
Experience that Matters
Owner-operator experience (10–20 years) provides the context to identify, measure, and value intangibles in the real world—much like a captain, lead surgeon, or art restoration expert combines training with thousands of hours of practice.
- Stradivarius + musician
- F1 car + driver
- Art restoration + deep craft knowledge
Misleading Shortcuts to Avoid
- “Free Cash Flow to Owner” is not profit if owner compensation isn’t normalized.
- EBITDA (good for public comparables) is often misapplied to private valuations and can mislead.
Why Outdated Methods Fall Short
The Problem
- Hard-Asset, Market, and Income approaches miss the dominance of intangibles.
- Private "market" data often lacks context (foreclosure, divorce, pressure sales).
- Income approaches fail without quantifying the intangible engines of income.
A Modern Solution
- Use internet platforms to connect buyers and sellers efficiently.
- A clear, lender-accepted Fair Market Value report replaces broker mystique.
- After presentation, close with legal counsel—no heavy commissions.
Benefits of the Eric Jordan Methodology
- Accurate — Comprehensive treatment of tangible + intangible assets.
- Finance-Ready — Accepted by the CSBFP in recent engagements; up to $500,000 loans with up to $150,000 for intangible assets.
- Transparent — 5 Senses Inspection adds verification and fraud prevention.
- Efficient Sales — Modern tools + clear reports help realize best price with minimal cost.
Note: We are actively working with CSBFP to expand the financeable portion of intangibles to reflect today’s realities.