The Intent
You want certainty that the valuation used will be accepted by CRA without prolonged review or dispute.
How I Solve It
CRA accepts valuations that clearly demonstrate fair market value using recognized principles. I apply the 25 Factors Affecting Business Valuation transparently, avoiding unsupported goodwill or artificial assumptions.
The 5 Senses Inspection Report provides observable evidence that supports the valuation's economic rationale.
Experience
It is vital because "What valuation does CRA accept for donations?" is not a mechanical calculation. It is a real-world judgment about risk, control, sustainability, and transferability — and that judgment is where 10–15 years of owner-operator and valuation experience, your gut–brain axis, does the heavy lifting.
Why It Is Not Mechanical
On paper, valuation appears formula-driven. In reality, governance rights, risk concentration, growth durability, market conditions, and stakeholder dynamics materially affect value.
Where Experience Changes the Number
Decisions around normalization, premiums, discounts, projections, and defensibility require judgment formed through lived ownership, negotiation, and financial accountability.
Why the Gut–Brain Axis Matters
The brain performs disciplined financial analysis. The gut recognizes unrealistic narratives, hidden leverage, emotional distortions, and deal risk. Together they produce conclusions that withstand scrutiny.
Protecting Financial Lives
The final number affects wealth, control, solvency, tax exposure, and long-term relationships. Requiring 10–15 years of serious hands-on business and valuation experience ensures the answer is fair, defensible, and durable. See my Experience page.
The Result
You receive a valuation that CRA is far more likely to accept, shortening timelines and reducing stress.