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YOU DESERVE A BUSINESS VALUATION SO ACCURATE AND SO POWERFUL, IT CAN BE USED TO SELL YOUR BUSINESS AT 100% OF VALUATION PRICE.
(Message or Call and we will walk you through real-time examples where we make this happen)
WE SOLVE
Partnership Disputes, Divorce Issues, Purchase and Sale Values, Share Value, CRA Section 86 Estate Freeze, Section 85 Rollover.
Income Valuations - Expropriation
We also do low cost Asset Appraisals.
Average fee $3,500
$1,500 to $15,000
FREE ballpark value estimates in our first 15 minutes of conversation.
Eric Jordan, Toronto Business Valuation Specialist
877 355 8004 - pindotca@gmail.com
Ben Khan, Toronto 5 Senses Inspection Report Specialist
- benkhan@pin.ca
Business Valuation Methodology
These are 25 Factors Affecting Business Valuation we use to value your Intangible Assets.
This is a recent redacted 5 senses inspection report:
November 26, 2024
5 Sense inspection report for Redacted Name
I have inspected random samples of 200 graphic novel collections owned by
Redacted Name
The tactile experience of these graphic novels plays a significant role in how readers interact with the medium. Several factors affect the "feel" of a book, including the sight, smell, Touch and feel
Sight is the most immediate and engaging sense when inspecting anything, the medium is largely visual. These graphic novels were neatly placed in boxes away from the elements to prevent damage
Sound
Not applicable
The Graphic novels still smell of fresh ink, with no musty odors
The graphic novels felt new, with no creases, rips or folds in the paper. Upon visual inspection of random novels, I found them to be in pristine condition\
Not Applicable
Conclusion
The sensory experience of these graphic novels, when considering the touch/feel, smell, and sight components, easily earns a 10 out of 10. High-quality comics engage all the senses in a deeply immersive way. The paper, binding, and ink used in modern and vintage comics alike create a tactile sensation that enhances the reading experience. Finally, the artwork, colours, typography, and layout make these graphic novels visually rich and dynamic Therefore, based on all these factors, I would grade these graphic novels 10 out of 10 for their sensory appeal.
Ben Khan
Toronto 5 Senses Inspection Report Specialist
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
This is how we put the Eric Jordan Methodology to work.
On my website www.pin.ca it is easy for you to see the 25 factors that we use to determine intangible asset value, we have a proven methodology, and you can also see what a five senses inspection report looks like. We show you a redacted example of an inspection report.
Last week a franchise owner and his bank (RBC) chose the Eric Jordan “25 Factors Affecting Business Valuation” process in combination with the Eric Jordan “5 Senses Inspection Report” to produce a business valuation that can be accepted by the Canada Small Business Financing Program. Probably because I have a good working relationship with CSBFP upper management. They look to me for advice and I have the email trail to prove it. Every week it will be a different client and bank but the process is the same.
We start where the accountants leave off. Your accountant has for tax purposes taken all the measures legally allowed to reduce your tax burden. That is what accountants do and are good at. I am different and higher up the food chain for business valuation. I am a Canadian Personal Property Appraiser. (CPPA) and a former auctioneer specializing in Intangible Assets. Tax value doesn’t matter in a real business valuation for a private company. “Fair market value” is what is demanded under the Canada Income Tax Act, and they DEMAND that Intangible Assets must be valued. There is a link to this information on my PIN dot ca website.
We start with the balance sheet and we see if you have everything there valued at today’s “fair market value” and the answer is NO, but we fix that. In some cases we will have to do an Asset Valuation. You can find details under our heading Debt Restructuring and Asset Valuation. We are qualified to do this while accounting based valuators are generally not qualified to do this. I am qualified with a proven methodology to value Intangible Assets. Accounting based valuators are using the old smoke and mirror methods. You can find more on that under our heading Business Valuation Fraud and Flaws to Avoid.
When we normalize the Balance Sheet as we are qualified to do we find out what capital needs to be left in the company and if there is redundant capital we identify it.
The capital that needs to be left in the company is generally charged as a cost in the statement of profit and loss statement when we normalize the profit and loss.
This is where we make sure everything the company does is at “fair market value” and that everything and everyone is paid fair market wages including the owner and family. Sometimes owners overpay themselves and sometimes they underpay themselves and family.
This is where the 10 years or more of relevant business owner operator “hands on” experience comes into play. This work with the 25 Factors and the Inspection reports requires “hands on experience”
(1) Just like the Captain on a Commercial Airline
(2) The head Surgeon in an operating room
(3) The Art Restoration Specialist restoring your million dollar family heirloom.
YOUR FAMILY’S PRIVATE BUSINESS deserves the hands on experience of someone that has owned and operated a relevant private business for at least 10 years. This disqualifies most accountant valuators.
This is where smoke and mirrors come in and we hear terms like “FREE CASH FLOW TO OWNER” and EBITDA.
If you are spending $500,000 of your hard earned cash, you want to know the best estimate of what percentage of the $500,000 is going to come back to you as “PROFIT” after everyone and everything in the business is paid at “fair market” including taxes and fair market wages to the owner operator and family members. THE REAL RETURN ON INVESTMENT
“FREE CASH FLOW TO OWNER” is not profit; but is a term scoundrels use to try to fool you into thinking this is the profit of the business. When in fact the business might be losing money if you or the current owner operator manager were paid “fair market value” wages for operating and managing the business. This is why I call them scoundrels.
“EBITDA” is a term well accepted for PUBLIC COMPANIES, but it is not appropriate for private companies and can be used by scoundrels to fool you into thinking the profit is very high when in fact that many not be true. Not everyone using the term “EBITDA” is a scoundrel. Sometimes they are just ignorant and find it convenient to stay that way.
You should see now why the person with the experience of owning and operating a successful Cobs Bakery Franchise or some other relevant business for 10 years is better qualified to be trained as a business valuator than a 20 year accountant.
Who would you choose?
877 355-8004
pindotca@gmail.com
1. Recognizing Fair Market Value: A Legal and Practical Foundation
Business valuation is governed by legislation such as the Income Tax Act in Canada and similar laws in the US, UK, Australia, and New Zealand. These frameworks emphasize Fair Market Value, which considers both tangible and intangible assets. Learn more at pin.ca/fair-market-value.
2. Intangible Assets: The Real Driver of Value
Research, such as the Ocean Tomo report, shows that 90% of the value of S&P 500 companies comes from intangible assets. This trend holds true for private businesses, where tangible assets typically play only a supporting role.
3. Hands-On Experience: The Key to Unlocking Value
Accurate valuations demand more than formulas; they require practical, relevant experience. The Eric Jordan methodology prioritizes hands-on expertise in recognizing, measuring, and valuing intangible assets, similar to other fields that depend on specialized knowledge.
Comparative Insights:
Just as art restoration specialists must understand every layer of a painting, airline pilots must master thousands of variables to ensure safe flights, and heart surgeons must rely on years of practice to perform life-saving operations, business valuators must have deep, relevant experience to identify intangible assets and assess their value accurately.
4. The Role of the 5 Senses Inspection Report
The 5 Senses Inspection Report prevents fraud and adds a layer of accuracy and confidence by evaluating tangible assets through sight, sound, smell, touch, and taste. It ensures that the physical components of a business align with the intangible assets that drive its overall value.
5. Why Outdated Methods Fall Short
The Problem with Traditional Approaches:
The Hard Asset, Market, and Income Approaches fail to account for the dominance of intangible assets.
A Modern Solution for Business Sales:
No smoke and mirrors are needed—the valuation does the selling.
6. How the Eric Jordan Methodology Benefits You
In loans of up to $500,000, up to $150,000 of intangible assets can be financed.
We’re actively working with CSBFP to increase this limit to reflect the real intangible asset portion in private businesses today.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Comparison to Other Valuation Methods
DATA RESEARCH 1
Methodology |
Score (%) |
Eric Jordan "25 Factors" Methodology |
97.1 |
CBV Comprehensive Report |
81.4 |
CBV Calculation Engagement |
72.9 |
CBV Estimate Engagement |
64.3 |
DATA RESEARCH 2
Methodology |
Score (%) |
Eric Jordan Methodology |
92.9 |
CBV Comprehensive |
80.0 |
CBV Calculation |
71.4 |
CBV Estimate |
61.4 |
Our data shows the Eric Jordan Methodologies being clearly superior.
Comparison Chart
Aspect |
Eric Jordan Methodologies |
CBV: Calculation Engagement |
CBV: Estimate Engagement |
CBV: Comprehensive Valuation |
Cost to Client |
$1,500–$15,000 CAD - AVG $3,500 |
$2,000–$5,000 CAD |
$7,500–$12,000 CAD |
$15,000–$50,000+ CAD |
Timeframe for Completion |
Moderate (1 to 3 weeks), efficient. |
Fast (days). |
Moderate (weeks). |
Long (months). |
Support for Negotiations |
Strong, confidence-building. |
Minimal. |
Moderate. |
Strong, litigation support for Public Corp. |
Applicability to Financing |
Tailored for programs like CSBFP. |
Limited. |
Sometimes accepted. |
Often required for public corp legal/financing. |
Client Understanding & Transparency |
Clear, actionable, client-focused. |
Limited clarity. |
Moderate. |
High detail, potential for overwhelm. |
Depth of Analysis |
Comprehensive yet practical. |
Minimal. |
Moderate. |
Comprehensive but time-consuming. |
Market Assumptions |
Emphasizes open-market with practical analysis. |
Minimal verification. |
Moderate analysis. |
Detailed analysis, limited sensory checks. |
Practical Experience |
Prioritizes hands-on business experience. |
Little to no hands on experience required. |
Some real-world data incorporation. |
Focus on technical expertise. |
Focus on Historical Data |
Historical data and forward-looking real-world insights. |
Heavy reliance on historical data. |
Moderate reliance with some analysis. |
Extensive use of historical data and trends. |
Hard Asset Valuation |
Real-world FMV with sensory verification. |
Mainly uses depreciated book values. |
Minimal detail on adjustment to book values. |
Includes adjusted values, lacks real-world checks. |
Intangible Assets |
Central focus, up to 90% weight. |
Rarely considered. |
Limited recognition. |
Included, often theoretically. |
Why Choose the Eric Jordan Methodology?
Holistic Valuation: We look beyond mere numbers, valuing the heartbeat of your business through our "25 Factors Affecting Business Valuation", focusing on intangibles like brand, R&D, and customer relations.
Practicality: Our unique "5 Senses Inspection Report" ensures you get a tangible grasp of your assets' real-world value, engaging all senses in the valuation process.
Cost-Effectiveness: You get comprehensive valuation insights at a fraction of the cost of a CBV Comprehensive Valuation, with an average cost of just $3,500, making it an affordable choice for private businesses.
Market Relevance: We align with the legal requirement of Fair Market Value, ensuring your valuation reflects actual market conditions.
Experience-Driven: Our approach values practical business operation insights over academic theory, providing valuations that resonate with the realities of running a business.
Key Differentiators
Emphasis on Intangibles: We recognize that in today's economy, intangible assets often drive more value than tangible ones.
Flexibility and efficiency: Get comprehensive valuations quickly, without the lengthy wait times associated with traditional methods.
Financing-Ready Reports: Our valuations are designed to meet the stringent standards of Canada Small Business Financing Program and financing institutions, facilitating easier access to capital.
Transparency: Our reports are crafted in clear, actionable language, ensuring you understand the valuation process and outcomes.
Choose the Eric Jordan approach for a valuation that's not only comprehensive but also cost-effective, practical, and aligned with the realities of your business.
For more information or to schedule a valuation, contact us at 877 355-8004 or email pindotca@gmail.com
PIN.CA 27-Year-Old Platform History
Learn how PIN.CA has been helping business buyers and sellers for over 27
years with active and new listings.
Visit our Business for sale page
Celebrating 27 Years on the Internet Helping Business Buyers and Business Sellers.
Here some of our latest listings:
More business for sale listings below!
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Where Our Methodology is Entrenched in Law
See how our valuation methodology aligns with Canadian and
international laws, emphasizing fair market value.
VALUATIONS ARE BASED ON CANADIAN AND INTERNATIONAL LAW
Fair market value (FMV) is a key concept in business valuation. It’s defined by several criteria:
One of the biggest issues with many valuations is the assumption of “no compulsion to act.” Often, market valuations overlook cases where a seller may have been compelled to sell quickly (due to things like death, disease, divorce, or debt). This lack of transparency can make a valuation less reliable.
Canada’s legal framework firmly supports fair market value standards. Here are some key references:
Intangible Assets Under Canadian Law
Intangible assets—things like patents, brand value, and intellectual property—are a significant part of many businesses’ worth. Canadian law recognizes their value and includes specific regulations:
Recent Developments and Their Impact
Recent legal changes have emphasized intangible assets, especially with updates to the Personal Property Security Act (PPSA) in provinces like BC and Ontario. These changes have brought several benefits:
Intangible assets have steadily gained significance, now representing up to 90% of the value of US and Canadian public companies. Here’s a quick look at this trend:
These studies and shifts reflect changes in the modern economy—where knowledge, innovation, and brand value play a dominant role in shaping a company’s worth.
The Eric Jordan “25 Factors Affecting Business Valuation” methodology is backed by years of experience. Here’s why this hands-on approach matters:
Why Business Ownership Experience is Key
Experienced business owners bring intuition and insight that can’t be taught. They’ve seen first-hand how market dynamics, customer needs, and intangible factors impact value. This experience means they can identify and measure the intangible elements that drive a business’s success.
The Power of Combining Methodology with Real Experience
The Eric Jordan methodology provides a structured foundation. When paired with the experience of a seasoned business owner, it creates a comprehensive approach to valuation—particularly useful in cases where intangible assets make up a large part of the value.
VALUATIONS ARE BASED ON CANADIAN AND INTERNATIONAL LAW
Eric Jordan, CPPA
In Toronto and Area call 877 355-8004
pindotca@gmail.com
Business Valuation by Industry
Explore industry-specific valuations, complete with 5
Senses Inspection Reports and detailed asset lists.
This report provides an in-depth valuation and operational assessment of a commercial printing and copy centre located on a main street in Toronto. The valuation incorporates the Eric Jordan CPPA "25 Factors Affecting Business Valuation" methodology, a comprehensive 5 Senses Inspection Report, and an itemized Asset List with fair market values based on observed conditions and usage.
High-Performance Printers & Copiers
Year | Equipment Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2020 | Xerox Versant 180 Digital Press |
$50,000 |
75% |
$37,500 |
2018 | Konica Minolta Bizhub C650i Multifunction Printer |
$30,000 |
65% |
$19,500 |
2019 | HP DesignJet Z9+ Large Format Printer |
$10,000 |
80% |
$8,000 |
Binding and Finishing Equipment
Year | Equipment Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2017 | Coil Binding Machine (Akiles CoilMac-EPI+) |
$2,500 |
50% |
$1,250 |
2021 | Heavy-Duty Guillotine Paper Cutter (Triumph 5560) |
$12,000 |
90% |
$10,800 |
2020 | Laminating Machine (GBC Pinnacle 27 EZ Load) |
$5,000 |
70% |
$3,500 |
Digital Design Tools
Year | Equipment Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2020 | Apple iMac 27-inch with Retina 5K Display |
$4,000 |
80% |
$3,200 |
2020 | Dell Precision Workstation with Adobe CC Suite |
$3,500 |
75% |
$2,625 |
2020 | X-Rite i1Pro Color Calibration Tool |
$1,200 |
85% |
$1,020 |
Point-of-Sale (POS) System
Year | Equipment Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2019 | Square POS Terminal with Receipt Printer |
$1,200 |
70% |
$840 |
Furniture and Fixtures
Year | Equipment Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2018 | Custom Workbenches and Shelving Units |
$10,000 |
60% |
$6,000 |
2019 | Ergonomic Office Chairs (5 units) |
$1,250 |
65% |
$812 |
Inventory
Year | Inventory Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2023 | Paper Supplies (A4, glossy, card stock) |
$5,000 |
100% |
$5,000 |
2023 | Ink and Toner Cartridges (Various types) |
$7,500 |
90% |
$6,750 |
Leasehold Improvements
Year | Equipment Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2016 | Custom Counters and Customer Area Renovations |
$20,000 |
50% |
$10,000 |
2017 | LED Lighting and Fixtures |
$5,000 |
60% |
$3,000 |
Signage
Year | Equipment Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2019 | Exterior Illuminated Sign |
$3,000 |
70% |
$2,100 |
Additional Assets
Year | Equipment Description | Original Value (CAD) | % Usefulness Remaining | Fair Market Value (CAD) |
---|---|---|---|---|
2019 | Security Camera System |
$2,000 |
75% |
$1,500 |
Factor | Status |
---|---|
Purpose | To be determined |
History | To be determined |
Financials | To be determined |
Return on Investment (ROI) | To be determined |
Liquidity | To be determined |
Cost of Liquidation | To be determined |
Hard Assets | To be determined |
Utility, Sustainability, Scalability | To be determined |
Research & Development (R&D) | To be determined |
Processes, Procedures, Systems | To be determined |
Shareholder Agreement | To be determined |
Management Capability & Workforce | To be determined |
Client Base | To be determined |
Supply Chain | To be determined |
Distribution Network | To be determined |
Marketing | To be determined |
Dominance in the Market | To be determined |
Industry Benchmarks | To be determined |
Terms of Lease | To be determined |
Terms of Sale | To be determined |
Minority Interest | To be determined |
Special Interest Purchaser | To be determined |
Geopolitical Considerations | To be determined |
Risk | To be determined |
Opportunity | To be determined |
Category | Fair Market Value (CAD) |
---|---|
High-Performance Printers & Copiers |
$65,000 |
Binding and Finishing Equipment |
$15,550 |
Digital Design Tools |
$6,845 |
Point-of-Sale (POS) System |
$840 |
Furniture and Fixtures |
$6,812 |
Inventory |
$11,750 |
Leasehold Improvements |
$13,000 |
Signage |
$2,100 |
Additional Assets |
$1,500 |
Total |
$123,397 |
Next Steps:
Contact Eric Jordan - 877 355 8004 or email pindotca@gmail.com or eric@pin.ca
We will provide a high-quality specialized business valuation report for your Toronto business that will encompass the asset value as shown, the intangible assets will be determined in the 25 Factors part, and the 5 Senses Inspection Report will tie it up in a package that will be hard to challenge.
This is helpful for almost any purpose, business sale, financing, divorce, dispute, or tax situation.
Sincerely,
Eric Jordan CPPA.
The list below will become available soon.
3D Printing Studios: 3D printers, modeling software, and material supplies.
Appliance Repair Services: Diagnostic tools, spare parts, specialized wrenches, and lifting equipment.
Audio Recording Studio Calgary: Soundproof rooms, high-quality microphones, mixing boards, and editing software.
Auto Body and Collision Repair Shops: Paint booths, sanders, and specialized auto body tools.
Auto Detailing Services: High-powered vacuums, polishers, steam cleaners, and detailing tools.
Bakery and Pastry Kitchens Regina: Commercial-grade ovens, mixers, proofers, and refrigeration.
Bicycle Repair and Retail Shops: Repair stands, bike tools, parts inventory, and tuning equipment.
Boat and Marine Repair Services: Hoists, winches, marine tools, and repair kits.
Brewpubs and Microbreweries: Fermentation tanks, kegs, bottling equipment, and refrigeration.
Catering Companies with Full-Service Kitchens Saskatoon: Cooking equipment, food warmers, storage, and refrigeration.
Commercial Cleaning Services (Specializing in Carpet Cleaning) Red Deer: Industrial-grade carpet cleaners, floor buffers, and power washers.
Commercial Window Cleaning Services: Scaffolding, water-fed poles, harnesses, and safety equipment.
Construction Contracting Business Edmonton: Power tools, scaffolding, saws, and safety equipment.
Custom Jewelry Manufacturing: Specialized tools for casting, molding, and polishing jewelry.
Custom Upholstery and Furniture Restoration: Industrial sewing machines, staple guns, fabric cutters, and woodworking tools.
Dental Clinics: Dental chairs, X-ray machines, sterilizers, and dental tools.
Drone Photography and Survey Services: Drones, GPS systems, and photo editing software.
Dry Cleaning and Laundry Services: Commercial-grade washers, dryers, press machines, and dry-cleaning machines.
E-Waste Recycling Centres: Electronics dismantling stations, shredders, and sorting systems.
Event Equipment Rentals: Tents, chairs, sound systems, and portable stages.
Glass Installation and Repair Services: Glass cutters, suction lifters, safety gear, and glass handling tools.
Home Renovation and Remodeling Services: Drills, saws, tile cutters, and renovation equipment.
HVAC Repair and Installation Services Ottawa: Refrigerant recovery units, gauges, welding torches, and diagnostic tools.
Landscaping and Lawn Care Services: Lawn mowers, trimmers, blowers, and trailers.
Medical and Aesthetic Spas: Laser machines, microdermabrasion devices, and skin treatment equipment.
Metal Fabrication Shops: Welding machines, plasma cutters, and metalworking tools.
Mobile Repair Businesses: Toolboxes, diagnostic tools, and portable equipment for fieldwork.
Pest Control Services: Sprayers, traps, pesticide storage, and protective equipment.
Pet Boarding Facilities: Kennels, washing stations, grooming tools, and play structures.
Pet Grooming Salons: Grooming tables, dryers, clippers, and washing stations.
Photography Studios: High-end cameras, lighting setups, and editing tools.
Plumbing Services Winnipeg: Pipe cutters, drain cleaning machines, and leak detection equipment.
Pool Maintenance and Repair Services: Water testing kits, pool vacuums, and chemical storage.
Restaurant and Food Truck Businesses Kelowna: Commercial grills, fryers, refrigeration, and serving equipment.
Screen Printing Businesses: Printing presses, drying racks, exposure units, and heat presses.
Security and Locksmith Services Victoria: Key-cutting machines, drills, lock picking tools, and surveillance equipment.
Sign-Making and Graphics Shops: Vinyl cutters, wide-format printers, laminators, and application tables.
Small Gym or Fitness Studio: Treadmills, weights, resistance machines, and other fitness equipment.
Small-Scale Manufacturing (e.g., Custom Jewelry): Specialized tools for intricate manufacturing tasks.
Solar Panel Installation Services: Drills, inverters, battery storage systems, and safety harnesses.
Stone Carving and Sculpture: Stone saws, chisels, grinders, and dust extraction systems.
Stone Masonry and Sculpture Studios: Stone saws, chisels, sandblasters, and grinders.
Tattoo and Piercing Studios: Tattoo machines, sterilization equipment, inks, and needles.
Tile and Flooring Installation Services: Tile cutters, wet saws, flooring nailers, and leveling tools.
Tree Trimming and Removal Services: Chainsaws, wood chippers, climbing gear, and safety equipment.
Vancouver Photography Studio with Professional Equipment: High-quality cameras, lighting, backdrops, and editing software.
Woodworking and Cabinetry Shops: Saws, sanders, routers, and custom woodworking machinery.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Intangible Asset Percentage – The "Secret Chart" Key to Business Value
Understand why intangible assets make up the majority of a business's value and how to identify them.
The Parameters for Business Valuations have fundamentally changed
The chart shows us that 90% of business value is now made up of intangible assets.
Most valuators today have no methodology to measure intangible assets and generally ignore them or vaguely refer to them as “goodwill” (circa 1975 ) with no explanation as to what goodwill might be.
Our proprietary “25 Factors Affecting Business Valuation” methodology identifies, measures, weighs, and values 100% of company assets as required to be compliant with the Canada Income Tax Act.
25 Factors Methodology is best described as a Venture Capitalist Style Business Valuation.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Experience – Your Family's Wealth is a Sacred Trust
Discover why decades of business ownership experience are essential to valuing intangible assets and protecting your wealth.
1. Pilots: No airline would certify a pilot based solely on classroom and simulator training without extensive real-world flying experience.
2. Surgeons: No hospital would allow a doctor to perform surgeries based solely on theoretical knowledge without years of hands-on surgical training.
3. Art Restorers: No family would entrust a valuable heirloom to someone without substantial experience in art restoration.
PRIVATE BUSINESS WEALTH
Business Valuators: Why would private business owners place that “SACRED TRUST” in the hands of a Business Valuator without “Hands ON” Intangible Asset Experience gained by owning and operating a private business for a very long time.
TRUST HANDS ON EXPERIENCE.
For your pilot, surgeon, million dollar art restoration, and your business valuation.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
How to Sell Your Business
Learn the steps, costs, and legal considerations to sell your business efficiently and successfully in Toronto.
1. A business valuation is done that carefully explains the value.
2. Google, Facebook and other platforms are then employed to find the buyer.
3. The business valuator or your real estate agent or company employee explains the valuation report to responders.
4. The seller and an effective legal team negotiate and coordinate the sale with the buyer. Total cost including legal is likely to be under nine percent.
Cost-Effective Services: One of our standout features is our affordability. Total sale costs, which include legal fees, valuation, marketing, and coordination, range 9% of your business valuation price.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Business Valuation for Expropriation
Find out what to expect in expropriation cases and why experienced legal and valuation support is critical.
For a business: Expropriation ends your lease. Ending the lease crushes your intangible assets which is likely to be 50% to 90% of your business value.
Most lawyers don’t understand “intangible assets” and the expropriation people are not going to give proper value to your major assets which are “intangible” and you could easily be cheated.
There is an old saying “it is not so much about the size of the dog in the fight but the size of the fight in the dog” and we believe that is especially true with lawyers and expropriation cases.
(1) The first thing we will do is evaluate your business and give it a value with the lease in place.
(2) Second, we will show what value is left after your lease is taken away.
(1) Your leasehold improvements worth $300,000 in your current location may have little value in a new location (if you can even find a new location where your business can be successful)
(2) What is your “normalized net income” going to be worth in a new location? Maybe nothing as there is no guarantee there will be any net income.
(2) What is your inventory going to be worth if it has to be liquidated, compared to what it was worth prior to expropriation?
(3) Even if you were able to find a new suitable lease what is your client base worth now? Are they going to follow you?
(4) Your brand, your marketing, and your advertising that is cumulative in nature could have a significantly different value in a now location.
(5) FAIR MARKET VALUE
Using the definition of “fair market value” how much would someone be likely to pay for all of your tangible and intangible assets if they were under no pressure to buy and had reasonable knowledge of the facts? One of the facts would be that a potential buyer will know the lease is ending soon and that you have to sell.
If $5,500 per month was spent on a well thought out Google Ad campaign and that campaign administration for 3 months; what would that buyer profile likely be willing to pay and why? This is an added component to a regular business valuation. This is why if this component is added for expropriation purposes this sort of valuation is likely to cost $4,500 to $9,500
The information provided on expropriation in the English speaking provinces of Canada, is based on a general understanding of the principles and practices of expropriation law as it applies in the particular province, rather than specific data from individual databases. The details shared are grounded in the overarching framework and legal principles that guide expropriation processes in Canada, most are well-documented in public legal resources, statutes, and legal commentary. Key sources typically include:
The $524,840 valuation for Redacted Business Name., as determined by the Eric Jordan "25 Factors Affecting Business Valuation" Methodology, is supported by the BC Expropriation Act's comprehensive approach to compensation. This approach not only covers the market value of tangible assets but also acknowledges the significant impact of intangible assets and other losses directly attributable to the expropriation. Presenting a detailed valuation that encompasses these aspects, grounded in the Act's principles, strengthens the case for achieving fair compensation for your client, REDACTED NAME.
Provincial Expropriation Act: This is the primary legal document that outlines the process, principles, and entitlements related to expropriation in a province. It provides the legal basis for compensation, including the valuation of both tangible and intangible assets, disturbance damages, and other compensable losses.
Legal Texts and Commentaries: Scholarly articles, legal commentaries, and textbooks on Canadian expropriation law offer insights into how the law is applied and interpreted, including precedents that shape the understanding of fair compensation and valuation methodologies.
Government Publications: Documents and guides published by the individual provincial governments or related authorities can provide guidance on the procedural aspects of expropriation and compensation.
Judicial Decisions: Court rulings on expropriation cases in BC offer precedent on how the law is applied, including how compensation is determined and what factors are considered in valuation.
Professional Guidelines: Publications and guidelines from professional bodies related to valuation, real estate, and legal practice in the province can offer insights into standard practices for assessing the value of expropriated properties and businesses.
The principles and practices described are well established in the field of expropriation law in the province and are supported by these types of authoritative sources. For the most accurate and up-to-date information, consulting the actual texts of the Provincial Expropriation Act, legal databases, and the latest judicial decisions would be recommended.
Recognition of intangible assets in expropriation cases, including goodwill, business losses, and other non-physical assets, is a well-established principle in Canadian law, including Provincial Law.
In Canadian expropriation law, compensation for the loss of intangible assets such as goodwill, business interruption, or loss of potential future profit is recognized, especially when these losses directly result from the expropriation. The courts have acknowledged that the value of a business is not solely in its physical assets but also in its ability to generate income, its customer relationships, its place in the market, and other intangible factors.
Tsawwassen Golf & Country Club v. South Coast British Columbia Transportation Authority (2013 BCSC 239): This is an example of a case where the issue of compensation, including for intangible losses, was significant. While primarily focused on land value and improvements, the principles discussed are relevant to the broader conversation about compensation for loss.
Southam Inc. v. Surrey (City) [1990] 2 S.C.R. 695: This Supreme Court of Canada decision, although not from BC, has been influential across Canada, including BC. It addressed the issue of business losses and the recognition of intangible assets in the context of expropriation.
The legal framework for considering intangible assets in expropriation of a province is rooted in the Expropriation Act and interpreted through court rulings. The Act outlines the basis for compensation, which is intended to make the expropriated party whole, considering both tangible and intangible losses.
I will be happy to send a redacted report to clients to review.
That old saying “it is not so much about the size of the dog in the fight but the size of the fight in the dog” In order to win in court you must have an interested lawyer who is willing to work with me and understand your valuation.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Business Valuation Fraud and Flaws to Avoid
Avoid outdated methods and uncover the risks of valuation fraud with our modern, experience-based approach.
Fraud and Major flaws you must avoid
The copyrighted and proprietary Eric Jordan “25 Factors Affecting Business Valuation” methodology is strong and accurate.
So accurate that when combined with OUR NEW IN-HOUSE MARKETING METHODOLOGY can expect to sell your business almost 100% of the time at or near 100% of our valuation price.
(We have past and ongoing proof)
WE SOLVE
Partnership Disputes, Divorce Issues, Purchase and Sale Values, Share Value, CRA Section 86 Estate Freeze, Section 85 Rollover.
Income Valuations - Expropriation
A business that can be financed is a business that can be sold.
WE HAVE MANY EXAMPLES WHERE CLIENTS USING OUR VALUATION REPORTS RECEIVE 85% FINANCING AT THE LOWEST RATES POSSIBLE. NOT POSSIBLE WITH MOST OTHER VALUATION REPORTS.
THERE ARE MAJOR FLAWS IN VALUATIONS PRODUCED BY MARKET APPROACH, ASSET APPROACH, OR INCOME APPROACH.
DO YOU WANT TO RISK LOSING NOT ONLY YOUR VALUATION FEE BUT ALSO YOUR COURT CASE?
I will lead with an example and how "market approach" could be harmful:
We recently did a business valuation required by RBC to finance a large well established restaurant and lounge in a large
Canadian city. The sale price was $575,000 but the value we found was over a million dollars or almost double.
This happened because the seller was in a "forced sale position." This was not a "fair market value" sale.
This sale price data should never be used for a comparable sale but you can be sure this price data is being used and unscrupulous agents and buyers could use this and other data that is not "fair market value" to try and bully sellers into accepting below market offers.
FAIR MARKET VALUE DEFINITION:
The price expressed in money that a knowledgeable buyer and seller would agree upon with both parties having reasonable knowledge of the facts; acting in their own interests, and neither being under any pressure to buy or to sell.
MARKET APPROACH
99% of the time when Canadian business valuators use Market Approach in private company sales they rely on sale price data that SHOULD NEVER BE USED. I have never, not even once found private sale price data to include any proof that the seller was not under pressure to sell. There are no doubt some cases, but which ones and what percentage? A valuator must be in compliance with the legal definition of "fair market value" regarding "NEITHER BUYER OR SELLER BEING UNDER PRESSURE TO BUY OR SELL"
Unless a valuator can reasonably prove the private seller is not under pressure to sell the data and comparable sale value must not be used under Canadian and International law.
Any business valuation report in Canada or anywhere else that mentions "market approach" should be challenged because this is an accounting term from the1975 era and for the reason above is highly unreliable and subject to fraud and misrepresentation.
Any business valuation report in Canada or anywhere else that mentions "asset approach" should be challenged because this is an accounting term from the 1975 era and is not a legally entrenched term in Canada or anywhere else. Tangible assets are entrenched in law but they are only a small percentage of the total assets of a business. For S&P 500 companies tangible assets are only 10% of value.
Who would want their company valued based on 10% of the asset base. SEE OCEAN TOMO REPORT.
Brokers and others are almost always referring to balance sheet assets
They sometimes include "goodwill" meaning the value amount another business was purchased for, but there has in the past been no methodology to identify, measure, weight, or put a dollar value estimate on intangible assets, even when intangible assets regularly make up to ninety percent of private company value.
The term "asset approach" is a made-up accounting term is not entrenched in Canada or anywhere else for business valuation.
Canadian Venture Capitalist Mark D Wiseman, working with the Canadian Pension Plan, valued a block of shares of a company that had financial statements showing huge losses (SKYPE), and purchased that block at $300 MILLION USD. Mark D Wiseman was also instrumental in selling that same block of shares for well over a BILLION USD two years later. BILLION DOLLAR CANADIAN PROFIT FOR THE CANADA PENSION PLAN.
That day in 2009 was the day when accounting based valuators had their income approach methodology turned on its head. THOSE VALUATORS USING INCOME APPROACH WOULD HAVE PASSED ON THE OPPORTUNITY TO MAKE CPP A BILLION CDN.
The Eric Jordan "25 Factors Affecting Business Valuation" methodology follows the Venture Capitalist model.
(1) The hard asset approach to business valuation was proven wrong and outdated as hard assets are a very small percentage of the average company value and especially by 2020. Skype had few hard assets.
(2) The income approach to business valuation they used was proven not well supported, misleading, and wildly inaccurate. Skype had negative income.
(3) The market approach to business valuation shows valuators even today (2023) are relying mainly on unverified, inadequate, incomplete, and misleading private company sale data.
We show what this is on our main website www.pin.ca
WE HAVE IT AND THEY DON'T
VALUATIONS SO ACCURATE THEY CAN REVEAL
WHO WOULD BUY YOUR BUSINESS
EVEN WHEN IT IS NOT FOR SALE.
UNIQUE ACCURATE, AND CONFIRMED BY AI
Our valuations, in many cases, can identify the profile of the entity who would buy your business, the process of finding that profile, and an estimate of how long and how much it would cost to find them.
MISLEADING AND FRAUDULENT VALUATIONS ARE A MAJOR CONCERN
98% of accountants DO NOT do business valuations and are trustworthy.
The problem is within the 2% who think they are qualified to do business valuations without adequate small business experience, methodology and perhaps lacking professional judgement. Then there are Business Brokers and Real Estate Agents.
Suspected Fraud Example in 2023:
My Valuation Report was for $2.7 Million
The client wanted a lower number that I could not honestly provide
The client then went "appraisal shopping" and found someone "certified" willing to use incomplete and outdated market, hard asset, and income approaches from the 1970's to find a value 38.19% lower than mine.
IS THIS FRAUD if presented to the partner or ex wife in isolation while hiding the existence of my valuation?
You can see the problem.
If you are in a divorce or partner situation, or you want to buy a business, you may want to have this done right the first time.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Debt Restructuring and Asset Valuation
Discover how intangible assets support debt restructuring and why hard assets alone often lack value.
Debt Restructuring in a small business
There is a huge difference between the net value after liquidation and the value of equipment within an ongoing business with a good lease and a good operator with a business plan.
The liquidation price below is the price the liquidator might get but then you have to take out moving, storage, and selling costs, and liquidators fee.
Net Liquidated value might be as little as $20,000
Union Dry Cleaning Machine HL-840-k (2018):
• Base Price: $22,500
• Liquidation Price: $11,250
• Current Value within a New Operating Company with a Business Plan: $30,375
Fulton Gas Fired Steam Boiler FB-015-F (2011):
• Base Price: $8,000
• Liquidation Price: $4,000
• Current Value within a New Operating Company with a Business Plan: $10,800
Water Conditioner Waterite 760:
• Base Price: $1,750
• Liquidation Price: $875
• Current Value within a New Operating Company with a Business Plan: $2,362.50
Air Compressor Eagle:
• Base Price: $2,500
• Liquidation Price: $1,250
• Current Value within a New Operating Company with a Business Plan: $3,375
Vacuum Rema:
• Base Price: $1,200
• Liquidation Price: $600
• Current Value within a New Operating Company with a Business Plan: $1,620
Water Heater Rheem:
• Base Price: $600
• Liquidation Price: $300
• Current Value within a New Operating Company with a Business Plan: $810
Steam Spotting Table Unipress SST:
• Base Price: $1,400
• Liquidation Price: $700
• Current Value within a New Operating Company with a Business Plan: $1,890
Utility All-Purpose Press Unipress 42LX:
• Base Price: $2,800
• Liquidation Price: $1,400
• Current Value within a New Operating Company with a Business Plan: $3,780
Utility Legger Press Unipress 46x:
• Base Price: $2,600
• Liquidation Price: $1,300
• Current Value within a New Operating Company with a Business Plan: $3,510
Air Steam Form-Finisher Unipress ASF:
• Base Price: $3,000
• Liquidation Price: $1,500
• Current Value within a New Operating Company with a Business Plan: $4,050
3 Part Puffer Unipress P1-3:
• Base Price: $1,500
• Liquidation Price: $750
• Current Value within a New Operating Company with a Business Plan: $2,025
Single Puffer Unipress P1-1:
• Base Price: $800
• Liquidation Price: $400
• Current Value within a New Operating Company with a Business Plan: $1,080
Washer LG (2 units):
• Base Price: $1,000 (for both)
• Liquidation Price: $500 (for both)
• Current Value within a New Operating Company with a Business Plan: $1,350 (for both)
Dryer LG:
• Base Price: $600
• Liquidation Price: $300
• Current Value within a New Operating Company with a Business Plan: $810
Sewing Machine (industrial) Juki DDD-555-4:
• Base Price: $1,200
• Liquidation Price: $600
• Current Value within a New Operating Company with a Business Plan: $1,620
Overlooker (industrial) Juki Mo-2512:
• Base Price: $1,100
• Liquidation Price: $550
• Current Value within a New Operating Company with a Business Plan: $1,485
Blind Stitches (industrial) BENZ 816:
• Base Price: $900
• Liquidation Price: $450
• Current Value within a New Operating Company with a Business Plan: $1,215
38ft Double Conveyer:
• Base Price: $2,500
• Liquidation Price: $1,250
• Current Value within a New Operating Company with a Business Plan: $3,375
3 Roll Bagger:
• Base Price: $350
• Liquidation Price: $175
• Current Value within a New Operating Company with a Business Plan: $472.50
Slick Rail System:
• Base Price: $1,400
• Liquidation Price: $700
• Current Value within a New Operating Company with a Business Plan: $1,890
Front Counter & Tagging Counter:
• Base Price: $800
• Liquidation Price: $400
• Current Value within a New Operating Company with a Business Plan: $1,080
Computer & Printer:
• Base Price: $1,000
• Liquidation Price: $500
• Current Value within a New Operating Company with a Business Plan: $1,350
Scale Cart:
• Base Price: $250
• Liquidation Price: $125
• Current Value within a New Operating Company with a Business Plan: $337.50
Laundry Carts (7 units):
• Base Price: $700 (for all)
• Liquidation Price: $350 (for all)
• Current Value within a New Operating Company with a Business Plan: $945 (for all)
Refrigerator:
• Base Price: $400
• Liquidation Price: $200
• Current Value within a New Operating Company with a Business Plan: $540
Totals:
• Total Base Price: $63,850
• Total Liquidation Price: $31,925
• Total Current Value within a New Operating Company with a Business Plan: $86,197.50
People need to keep in mind how little is recovered in liquidation so deals should be negotiated knowing that liquidation really is not in anyone’s interest.
Debt restructuring is the process by which a debtor (usually a small business) and its creditors renegotiate the terms of the debt. The principal amount outstanding may be lowered, the repayment time may be extended, or the interest rate may be changed. Making debt obligations more bearable is the aim of debt restructuring, which aids the debtor in regaining financial stability.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
FAQs – Top 44 Business Valuation Questions and Answers
Get answers to the most common questions about business valuation from a trusted expert.
How much is my business worth?
Great starting point! Send me a message, and within 15 minutes of our first conversation, I can usually give you a ballpark estimate and a quote for a full valuation or appraisal.
What experience should a business valuator have?
Hands-on experience owning and operating a relevant business for 10 or 20 years. That’s what it takes to understand and apply the '25 Factors Affecting Business Valuation' method that we use. It’s on my site, www.pin.ca, if anyone wants more details.
How do I get a business appraisal?
Same as before—reach out to me, and we’ll get started. It’s simple.
What’s the best way to find out the value of my business?
Again, just send me a message. I’ll take it from there.
Where can I get a business valuation?
You’ve already found it. Send me a message or go to www.pin.ca, and I’ll help you from there.
How can I find the fair market value of my business?
Same answer. Message me, and I’ll help you determine that.
Who does business valuations near me?
That would be me, Eric Jordan, CPPA. Just send me a message, and we’ll get connected.
What affects the value of a business?
A few main things: your normalized net income, your tangible assets, and, most importantly, the intangible assets surrounding them. Give me a call at 877-355-8004 or email me, and we can go over it in detail.
How much can I sell my business for?
Assuming you mean at fair market value, message me, and I’ll help you determine that. Or just email me at eric@pin.ca.
What’s involved in a business valuation?
It starts with your financial info, then we apply the '25 Factors Affecting Business Valuation.' If possible, we also do a Five Senses Inspection Report for a thorough analysis.
How long does a business appraisal take?
Usually around 10 days.
How much does it cost?
It can range from $1,500 to over $15,000, depending on complexity, but $3,500 is typical.
How do I know if my business is worth selling?
Great question. Give me a call, and we’ll talk it through. Sometimes, a business is worth little without the owner, meaning it’s hard to sell.
How can I increase the value of my business before selling?
Our valuation report can highlight areas to improve.
Can I get a business valuation for a bank loan?
Absolutely. I’ve got a good relationship with the Canada Small Business Financing Program, so we can help with that.
Is now a good time to get a valuation for my business?
Send me a message, and I’ll help you decide.
What do I need to get a business valuation?
Relevant information, and then an intake call with me to get us going.
How do I prepare for a business valuation?
Get in touch and gather your financial info for our review.
What documents do I need for a business appraisal?
Mostly financials, your lease, and a willingness to discuss intangible assets.
What’s included in a business valuation report?
A full report, possibly with a Five Senses Inspection. I always send a sample when quoting.
What’s the difference between a business appraisal and a business valuation?
An appraisal often focuses on tangible assets, whereas valuation considers both tangible and intangible.
How accurate are business valuations?
Very accurate. Most businesses sell close to our valuation if they’re well-promoted.
How do I get a business valuation in Toronto?
Message or call me; we can usually complete it within 10 days.
Where can I get my business appraised in Toronto?
You’re already in the right place—send me a message or call 877-355-8004.
Are there business appraisers in Toronto?
Yes, my CPPA designation is recognized across Canada.
Can I get my business appraised without selling it?
Of course. Message me, and I’ll explain why it’s still beneficial.
How do I find a good business valuator?
We believe our methodology is top-notch for private business assets.
How do I know if a business valuation is reliable?
Contact us, and we can share examples where our valuation matched sale prices exactly.
What should I look for in a business valuation expert?
Experience in running a business is key. It was covered in one of the earlier questions, too.
What’s the tax impact of selling a business?
Depends on whether it’s an asset or share sale.
How does a business valuation affect taxes?
Selling shares with a spouse may shield nearly two million dollars from capital gains tax.
Can a business valuation help me get financing?
Yes, especially with Canada’s $500,000 loan guarantee program.
What can I use a business valuation for?
Tax planning, sales, divorce, partnerships, expropriations, and planning.
How does a business valuation help with selling a business?
It provides a credible report that banks trust, making financing easier for buyers.
Is a business appraisal needed for partnership buyouts?
Not legally required, but very wise to ensure all parties are informed.
Can a business valuation help me plan for retirement?
Yes. Knowing your business’s worth is essential for retirement planning.
How do I get a valuation for a franchise business?
Same process. Reach out, and we can help with financing or sale.
How do you value a family-owned business?
Our method is especially suited for private, family-owned businesses.
How is a small business valued differently from a large business?
Private business values are unique compared to publicly traded companies.
What’s the process for valuing an online business?
Similar process, but with more emphasis on intangible assets.
What’s the best way to value a service-based business?
Using normalized net income, then applying our 25 Factors Methodology.
Do I need a business valuation for estate planning?
Definitely—essential for proper planning.
How is goodwill factored into a business valuation?
Goodwill has limited relevance in private business but is sometimes used in big company acquisitions.
How do you value intangible assets in a business?
Our 25 Factors Methodology specifically addresses intangible assets.
Sage: Welcome to another episode of 'Business Valuation Insights.' Today, we're diving into the top questions people have about business valuation and appraisal. And who better to answer them than Eric Jordan, CPPA and founder of the '25 Factors Affecting Business Valuation' methodology. Eric, thanks for joining us!
Eric: Thanks for doing this, Sage. Excited to tackle these questions and hopefully clear up what goes into valuing a business accurately.
Sage: Alright, let’s get right to it. First question: How much is my business worth?
Eric: Great starting point! Send me a message, and within 15 minutes of our first conversation, I can usually give you a ballpark estimate and a quote for a full valuation or appraisal.
Sage: Quick and easy! Here’s another one: What experience should a business valuator have?
Eric: Hands-on experience owning and operating a relevant business for 10 or 20 years. That’s what it takes to understand and apply the '25 Factors Affecting Business Valuation' method that we use. It’s on my site, www.pin.ca, if anyone wants more details.
Sage: Good to know! Next up: How do I get a business appraisal?
Eric: Same as before—reach out to me, and we’ll get started. It’s simple.
Sage: What’s the best way to find out the value of my business?
Eric: Again, just send me a message. I’ll take it from there.
Sage: Sounds easy! Here’s one that comes up a lot: Where can I get a business valuation?
Eric: Well, you’ve already found it. Send me a message or go to pin.ca, and I’ll help you from there.
Sage: Perfect. And how can I find the fair market value of my business?
Eric: Same answer. Message me, and I’ll help you determine that.
Sage: Okay, let’s dig a bit deeper. Who does business valuations near me?
Eric: That would be me, Eric Jordan, CPPA. Just send me a message, and we’ll get connected.
Sage: Now, what affects the value of a business?
Eric: A few main things: your normalized net income, your tangible assets, and, most importantly, the intangible assets surrounding them. Give me a call at 877-355-8004 or email me, and we can go over it in detail.
Sage: Good points. Now, how much can I sell my business for?
Eric: Assuming you mean at fair market value, message me, and I’ll help you determine that. Or just email me at eric@pin.ca.
Sage: And what’s involved in a business valuation?
Eric: It starts with your financial info, then we apply the '25 Factors Affecting Business Valuation.' If possible, we also do a five senses inspection report for a thorough analysis.
Sage: How long does a business appraisal take?
Eric: Usually around 10 days.
Sage: And how much does it cost?
Eric: It can range from $1,500 to over $15,000, depending on complexity, but $3,500 is typical.
Sage: Got it. How do I know if my business is worth selling?
Eric: Great question. Give me a call, and we’ll talk it through. Sometimes, a business is worth little without the owner, meaning it’s hard to sell.
Sage: How can I increase the value of my business before selling?
Eric: Our valuation report can highlight areas to improve.
Sage: Can I get a business valuation for a bank loan?
Eric: Absolutely. I’ve got a good relationship with the Canada Small Business Financing Program, so we can help with that.
Sage: Is now a good time to get a valuation for my business?
Eric: Send me a message, and I’ll help you decide.
Sage: What do I need to get a business valuation?
Eric: Relevant information, and then an intake call with me to get us going.
Sage: How do I prepare for a business valuation?
Eric: Get in touch and gather your financial info for our review.
Sage: What documents do I need for a business appraisal?
Eric: Mostly financials, your lease, and a willingness to discuss intangible assets.
Sage: What’s included in a business valuation report?
Eric: A full report, possibly with a five senses inspection. I always send a sample when quoting.
Sage: What’s the difference between a business appraisal and a business valuation?
Eric: An appraisal often focuses on tangible assets, whereas valuation considers both tangible and intangible.
Sage: How accurate are business valuations?
Eric: Very accurate. Most businesses sell close to our valuation if they’re well-promoted.
Sage: How do I get a business valuation in Toronto?
Eric: Message or call me; we can usually complete it within 10 days.
Sage: Where can I get my business appraised in Toronto?
Eric: You’re already in the right place—send me a message or call 877-355-8004.
Sage: Are there business appraisers in my city?
Eric: Yes, my CPPA designation is recognized across Canada.
Sage: Can I get my business appraised without selling it?
Eric: Of course. Message me, and I’ll explain why it’s still beneficial.
Sage: How do I find a good business valuator?
Eric: We believe our methodology is top-notch for private business assets.
Sage: How do I know if a business valuation is reliable?
Eric: Contact us, and we can share examples where our valuation matched sale prices exactly.
Sage: What should I look for in a business valuation expert?
Eric: Experience in running a business is key. It was covered in one of the earlier questions, too.
Sage: What’s the tax impact of selling a business?
Eric: Depends on whether it’s an asset or share sale.
Sage: How does a business valuation affect taxes?
Eric: Selling shares with a spouse may shield nearly two million dollars from capital gains tax.
Sage: Can a business valuation help me get financing?
Eric: Yes, especially with Canada’s $500,000 loan guarantee program.
Sage: What can I use a business valuation for?
Eric: Tax planning, sales, divorce, partnerships, expropriations, and planning.
Sage: How does a business valuation help with selling a business?
Eric: It provides a credible report that banks trust, making financing easier for buyers.
Sage: Is a business appraisal needed for partnership buyouts?
Eric: Not legally required, but very wise to ensure all parties are informed.
Sage: Can a business valuation help me plan for retirement?
Eric: Yes. Knowing your business’s worth is essential for retirement planning.
Sage: How do I get a valuation for a franchise business?
Eric: Same process. Reach out, and we can help with financing or sale.
Sage: How do you value a family-owned business?
Eric: Our method is especially suited for private, family-owned businesses.
Sage: How is a small business valued differently from a large business?
Eric: Private business values are unique compared to publicly traded companies.
Sage: What’s the process for valuing an online business?
Eric: Similar process, but with more emphasis on intangible assets.
Sage: What’s the best way to value a service-based business?
Eric: Using normalized net income, then applying our 25 factors methodology.
Sage: Do I need a business valuation for estate planning?
Eric: Definitely—essential for proper planning.
Sage: How is goodwill factored into a business valuation?
Eric: Goodwill has limited relevance in private business but is sometimes used in big company acquisitions.
Sage: How do you value intangible assets in a business?
Eric: Our 25 factors methodology specifically addresses intangible assets.
Sage: Thanks, Eric, for all this invaluable information. If you’re listening and want more details, visit www.pin.ca or reach out directly to Eric for help with your business valuation needs.
Eric: Thanks, Sage! I look forward to helping more business owners understand their value.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Canada's Natural Resources and Intangible assets
By combining Canada's natural resources and the recognition of intangible assets in small business lending, our expert valuations aim to raise the standard of living by 10%.
Canada boasts one of the world’s most significant fishing industries, supported by its vast Atlantic, Pacific, and Arctic coastlines. From lobster in Nova Scotia to salmon in British Columbia, fishing is central to Canada’s economy and way of life.
Fishing is deeply embedded in Canada’s heritage. Indigenous communities have fished sustainably for millennia, blending traditional practices with modern science. Coastal towns thrive on fishing, with their cultural identities tied to the sea.
Canada generates 60% of its electricity from hydro sources, contributing 9% to global hydroelectric power.
Canada’s growing wind and solar sectors support its leadership in renewable energy innovation.
Canada’s wealth lies not only in its resources but in the stories of its people. From the songs of Stompin’ Tom Connors and Rita MacNeil to the hockey triumphs of the Trail Smoke Eaters, these narratives embody the resilience and pride of Canadian communities. This blend of natural and cultural resources cements Canada’s place as a global leader, where economic strength and cultural heritage go hand in hand.
Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com
Podcast Title: Canada Unveiled: Natural Resources and Cultural Legacy
Chris: Welcome to "Canada Unveiled," the podcast where we explore the stories that shape our nation. I'm Chris, and joining me in conversation today is Eric Jordan, a Canadian Personal Property Appraiser and a passionate storyteller about Canada's rich heritage. Welcome, Eric!
Eric: Thanks for the conversation, Chris. It's great to be here talking about what makes Canada great.
Chris: Today, we're diving deep into Canada's natural resources and how they've not only fueled our economy but also inspired our culture, music, and communities. There's so much to unpack.
Eric: Absolutely. Canada is a land of vast resources, but what's truly fascinating is how these resources intertwine with the lives of everyday Canadians.
Chris: Let's start with one of our most significant resources—uranium. Saskatchewan's Athabasca Basin is world-renowned, isn't it?
Eric: It sure is. The Athabasca Basin, near towns like Saskatoon and La Ronge, holds about 15% of the world's uranium resources. The uranium mined there is some of the highest grade found anywhere on the planet.
Chris: And it's not just about extraction. This uranium plays a crucial role in global nuclear energy, powering homes and industries worldwide.
Eric: That's right. It's a prime example of how Canada's resources have a global impact. The innovation and technology developed around uranium mining also showcase our commitment to sustainable and responsible resource management.
Chris: Speaking of energy, we can't overlook Alberta's oil sands.
Eric: Indeed. Places like Fort McMurray and Cold Lake are the heart of Canada's oil industry. With about 10% of the world's proven oil reserves, Alberta is a powerhouse.
Chris: Advanced extraction techniques have really pushed the industry forward, balancing economic growth with environmental concerns.
Eric: Exactly. It's about finding that sweet spot where we can support communities economically while preserving the environment for future generations.
Chris: Moving west to British Columbia, natural gas is another significant player.
Eric: Yes, towns like Grande Prairie in Alberta and Fort St. John in BC are hubs for natural gas production. Canada contributes about 4% to the global production, which is impressive given we hold only about 1% of the world's reserves.
Chris: It's fascinating how efficient infrastructure and technology can amplify our contribution on the world stage.
Eric: Absolutely. And the extensive pipeline networks we have ensure that natural gas reliably reaches both domestic and international markets.
Chris: Now, let's talk about something that's been gaining attention—rare earth elements in Saskatchewan.
Eric: The Saskatchewan Research Council in Saskatoon has established North America's first rare earth processing facility. This positions Canada as a leader in supplying these critical minerals essential for modern technologies like smartphones and electric vehicles.
Chris: That's a significant step, especially as the world shifts towards more advanced tech and green energy solutions.
Eric: Precisely. And speaking of green energy, lithium exploration in places like Snow Lake, Manitoba, is another exciting development.
Chris: Snow Lake Resources is making strides, right?
Eric: They are. With about 60,000 acres dedicated to lithium exploration, Canada is bolstering the supply chain for electric vehicles across North America.
Chris: It's encouraging to see these initiatives pushing us towards a more sustainable future.
Eric: Agreed. And it's not just about mining; it's about comprehensive development that includes environmental stewardship.
Chris: Let's shift gears to fishing, a resource that's both economic and deeply cultural, especially in Atlantic Canada.
Eric: Fishing is the lifeblood of many coastal communities. From lobster fisheries in Nova Scotia to salmon runs in British Columbia, it supports thousands of jobs and has a profound cultural significance.
Chris: The traditions passed down through generations are captured beautifully in music. I'm reminded of The Rankin Family's song, "The Fisherman's Son."
Eric: Yes! That song really encapsulates the challenges and pride of life in the fishing industry. It tells the story of generational knowledge and the deep connection to the sea.
Chris: And speaking of music, we can't forget Stompin’ Tom Connors. His songs like "Tillsonburg" and "Bud the Spud" highlight everyday Canadians and their work.
Eric: Stompin' Tom had a unique way of turning ordinary stories into national anthems. "Tillsonburg" brings to life the toil of tobacco farmers in Ontario, while "Bud the Spud" celebrates the role of truckers in moving our resources to market. Stompin’ Tom did the intro song for a popular Canadian TV series called “MarketPlace.”
Chris: It's amazing how music reflects and amplifies the stories of our resource industries.
Eric: Absolutely. And then there's Rita MacNeil's "Working Man," a powerful tribute to the coal miners of Nova Scotia.
Chris: Her voice captures the strength and resilience of those communities.
Eric: She gives a voice to the hardships and the sense of camaraderie among workers, which is a common thread in resource towns.
Chris: On the topic of community and pride, let's talk about the Trail Smoke Eaters.
Eric: The Smoke Eaters are a legendary hockey team from Trail, British Columbia. Their name itself reflects the town's smelting heritage. Back in 1939 and 1961, they won the World Ice Hockey Championships, putting a small Canadian resource town on the global map.
Chris: That's incredible. It shows how intertwined sports and industry can be in fostering community spirit.
Eric: Exactly. The team's success mirrored the hard work and determination of the town's residents, many of whom worked in the smelters by day and supported the team by night.
Chris: Moving on to renewable resources, Canada's forestry industry is another pillar.
Eric: Indeed. We manage about 9% of the world's forests. Sustainable practices in places like Prince George and Thunder Bay ensure that we remain a leading exporter of softwood lumber, pulp, and paper.
Chris: Sustainability is key, especially with global concerns about deforestation.
Eric: That's right. Canada has some of the most stringent forest management policies, balancing economic needs with environmental protection.
Chris: Agriculture is another area where Canada shines.
Eric: I can still remember that wheat is still dangerous to store at moisture levels above 14.5 MC I recall as a young guy being able to estimate fairly close the moisture level by sticking my arm in a container of wheat. From the vast wheat fields in Saskatchewan to canola production in Manitoba, our agricultural sector is robust. And let's not forget Quebec's maple syrup, which accounts for about 71% of the world's supply.
Chris: Can't imagine pancakes without it!
Eric: Neither can I. These products are staples not just in Canada but around the world.
Chris: As we look to the future, renewable energy is becoming increasingly important.
Eric: Absolutely. Canada generates about 60% of its electricity from hydro sources. Projects like the James Bay Project in Quebec and the W.A.C. Bennett Dam in BC are monumental. Where I grew up in Manitoba there are, I believe 16 hydro generation stations.
Chris: Plus, the growth of wind and solar energy in places like Pincher Creek and Sarnia shows our commitment to diversifying energy sources.
Eric: It's all about investing in sustainable infrastructure that will serve generations to come.
Chris: Eric, this has been an enlightening discussion. It's clear that Canada's natural resources are deeply connected to our economy, culture, and identity.
Eric: I couldn't agree more. It's the people behind these resources—the workers, the communities—that truly make Canada remarkable. Canada’s intangible assets.
Chris: Before we wrap up, any final thoughts?
Eric: Just that understanding our resources is crucial, but so is recognizing and celebrating the stories of those who bring them to us. It's a collective effort that defines who we are as a nation. I like to believe that my intangible asset methodology can help raise our standard of living.
Chris: Well said. Thank you so much for joining us today, Eric.
Eric: My pleasure, Chris. Thanks for having me.
Chris: And thank you to our listeners for tuning into "Canada Unveiled." If you enjoyed today's episode, be sure to subscribe and share it with others. Until next time!
Immigration to Canada and Achieving a Thriving Workforce
Chris: Welcome to the Chris and Eric Podcast, where we explore the strategies shaping the future of business and economic growth. Today’s episode is all about immigration to Canada, a topic that’s making waves across industries and communities. We believe your intangible asset understanding and how that relates to business valuation can help Canada achieve a 75% workforce participation rate by rethinking immigration, focusing on temporary workers, skilled refugees, and—here’s the game-changer—business immigrants who invest in Canada and turning our temporary into entrepreneur and business owners.
Eric: That’s right, Chris. Immigration to Canada isn’t just about population growth anymore. It’s about strategic, merit-based policies that solve labour shortages, boost the economy, and make our communities stronger. We’re going to break down how business investment and smart immigration strategies can transform Canada’s workforce.
Chris: Eric, let’s set the stage. Why is a 75% workforce participation rate such a big deal for Canada?
Eric: Great question, Chris. Right now, Canada’s participation rate is around 65%. That leaves a lot of untapped potential. By bringing in immigrants who can immediately contribute—like skilled workers, refugees with in-demand expertise, and business investors—we can close that gap. Think about it: more workers mean more GDP, stronger tax revenues, and better public services.
Chris: So, we’re not just talking about filling gaps in the workforce; we’re talking about creating a thriving economic cycle.
Eric: Exactly. And here’s where business immigrants come in. Imagine someone immigrating to Canada and purchasing a local business—let’s say with less than 50% financing. They’re not just creating jobs; they’re revitalizing communities and keeping essential services running.
For temporary workers and refugees the question we should be asking them is “would you be interested in applying your skill or trade and owning a small business in Canada?”
ONLY TAKE THE ONES WHO CAN PROVE THEY HAVE A SKILL OR TRADE and have a desire to have a business. THESE ARE THE PEOPLE WE NEED.
Canada Small Business Financing Program should be encouraging these people in year 3 to be opening a business in Canada and of course with a reliable pathway to residency and citizenship.
Chris: Let’s get into the nuts and bolts. How does Canada achieve this kind of strategic immigration policy?
Eric: First, we need to expand temporary worker programs. These programs fill critical gaps in industries like healthcare, agriculture, construction, and technology. But here’s the kicker: they need clear pathways to residency. If you’ve proven your value, you should have a straightforward path to become a permanent resident.
Chris: That makes sense. And what about refugees? How do they fit into the plan?
Eric: For refugees, it’s all about matching their skills with Canada’s labour market needs. Healthcare professionals, engineers, tradespeople—these are the folks we need. By fast-tracking their residency and integration, we bring in people who are ready to contribute right away. And they should have an entrepreneurial spirit.
Chris: And the business investors?
Eric: Business immigrants are the game-changers, Chris. By requiring less than 50% financing for business purchases, we ensure these immigrants are serious about contributing to Canada’s economy. They create jobs, stabilize local markets, and inject new energy into small businesses.
Chris: This sounds incredible, but let’s talk about the challenges. What’s standing in the way of this vision?
Eric: There are a few hurdles. First, we need to make sure business immigrants have access to mentorship and community support. Starting a business in a new country isn’t easy. For temporary workers and refugees, integration programs—like language training and skills matching—are crucial.
Chris: And what about over-reliance on temporary workers?
Eric: That’s a valid concern. Pathways to residency solve that problem by keeping skilled workers in the country long-term. It’s all about balancing short-term needs with long-term stability. If they can have access to business start up loans, all the better.
Chris: Let’s wrap this up with the big picture. Why is immigration to Canada so critical right now?
Eric: Canada is at a turning point. With an aging population and labour shortages, we can’t afford to sit back. Strategic immigration policies—focused on business investment, skilled refugees, and temporary workers—are the key to sustaining our economy and improving our communities.
Chris: And achieving a 75% workforce participation rate could add $200–$300 billion annually to our GDP. That’s a game-changer.
Eric: It is. And by prioritizing immigration to Canada through smart policies, we’re not just solving today’s problems; we’re building a stronger, more resilient future.
Chris: Thanks for tuning in to the Chris and Eric Podcast. Don’t forget to like, share, and subscribe—and if you’re interested in learning more about immigration to Canada, check out our website for resources and updates.
Eric: Let’s keep the conversation going. Immigration isn’t just a policy—it’s a solution. See you next time!
Chris and Eric (together): Bye for now!
Toronto and Canadian Business Valuation News
Toronto's tech sector, which includes significant AI and semiconductor interests, might see a direct impact from Arm Holdings' valuation test. The concern over AI spending could lead to a reassessment of tech investments, with investors possibly favoring companies that can demonstrate sustainable growth over speculative AI ventures. This could benefit established tech firms or those with clear profitability paths. Additionally, Karman Holdings' IPO, seeking a valuation of up to $2.6 billion, might spur interest in defense and space tech in Toronto. The city could see an increase in startups or investment in these areas, especially with local companies or investors looking to capitalize on the Trump administration's focus on space. This might also encourage collaborations with institutions like the University of Toronto for tech development in these fields. Furthermore, the scrutiny on high valuations like Palantir's could make investors more cautious, potentially affecting funding for Toronto's numerous tech startups, pushing them towards more conservative growth models.
Toronto's business valuation and asset appraisal landscape in 2025 reflects the city's status as Canada's economic powerhouse. The real estate sector, particularly commercial properties, continues to be a significant determinant of business valuation. With the pause on U.S. tariffs, there's a sense of stability, but the city's valuations are highly sensitive to interest rate changes and international investment trends. The tech sector's growth has also bolstered valuations, with companies like Shopify and other startups influencing the market. However, the high cost of living and doing business means that ROI can be squeezed for smaller entities unless they have niche offerings or scalable models. Property tax assessments, which occur every four years in Ontario, significantly impact valuations, especially for property-rich businesses. The recent housing market corrections have made appraisals more conservative, affecting businesses that rely on real estate collateral for financing.
Impact on Business Valuation:
Economic Diversity: Toronto's broad economic base, including finance, tech, and real estate, stands to gain significantly from free trade with the U.S.
Market Stability: The stability from no tariffs can lead to increased investor confidence in Toronto's businesses, potentially raising valuation multiples.
Sector-Specific Benefits: Tech firms might see enhanced opportunities for cross-border tech deals, while real estate could benefit from more stable construction material costs.
Valuation Consideration: Companies with significant U.S. exposure will likely see an uplift in valuation due to lower risk premiums and improved cash flow forecasts.
In Toronto, private businesses in manufacturing, particularly in automotive and machinery sectors, will face higher costs for components or finished goods imported from or exported to the U.S. This could lead to squeezed margins, reduced competitiveness, and subsequently, lower valuations for these businesses. Small and medium-sized enterprises (SMEs) in the retail sector might see their valuations impacted by increased costs of American products, leading to potential price hikes that could reduce consumer demand. The real estate market, where many private developers and investors operate, might also see valuations adjust if economic uncertainty leads to a decline in property values or a slowdown in development projects. Additionally, private businesses in finance and consulting might face lower valuations if economic activity decreases, affecting their client base and revenue streams.
In Toronto, the city's robust financial sector, including numerous firms specializing in business valuation and appraisal, has been reevaluating methodologies in light of social media platform uncertainties. Companies like "Valuation Toronto Inc." have traditionally leveraged social media for marketing and lead generation, using platforms like TikTok for educational content on business valuation to attract younger entrepreneurs. However, with the potential instability of these platforms, they've had to adjust their approach. The firm has now invested in creating a robust online presence through their website and SEO, ensuring their valuation services remain visible and accessible.
The impact on business valuation is significant; social media metrics were once key indicators of a business's market reach and brand value, particularly for startups in tech and consumer goods. Now, appraisers are integrating more comprehensive digital metrics, looking at a business's email list size, website traffic, and direct engagement through newsletters. This shift has led to lower valuations for companies heavily reliant on single platforms for their online presence, as investors perceive higher risk. Moreover, traditional marketing strategies are making a comeback, with businesses like "Valuation Toronto Inc." sponsoring local business events, which indirectly affect their own valuation by expanding their network and reputation.
The evolving IPO market sentiment has direct implications for Toronto, known for its robust financial sector and a hub for tech startups looking to go public. With analysts cautioning against over-optimistic valuations, Toronto's companies preparing for IPOs in 2025 might need to adjust their expectations. The city's investment community is likely to be more selective, scrutinizing business models and financials more rigorously before investing. This could lead to a slower but potentially more sustainable growth in the IPO market, emphasizing long-term value over short-term gains.
The regulatory crackdown on KuCoin serves as a cautionary tale for Toronto's burgeoning cryptocurrency sector. Local exchanges or fintech companies dealing with cryptocurrencies might face increased scrutiny from regulators like the Ontario Securities Commission, potentially impacting their valuation as compliance costs rise. However, the resilience shown by KuCoin's token might inspire optimism among local investors, seeing potential for growth in well-regulated environments.
The corporate restructuring and valuation issues seen with Vanke and Evergrande in China could influence how Toronto's real estate developers and investors perceive market risks. This might lead to more conservative valuations, especially for projects with high leverage or speculative returns, prompting a reevaluation of investment strategies in real estate.
Impact on Business Valuation and Appraisal:
Toronto, as Canada's financial and business hub, is highly sensitive to shifts in valuation practices, especially given its concentration of tech startups and established companies. The city's real estate market, already one of the most expensive in Canada, uses business and property valuations extensively for transactions, taxation, and investment decisions. The recent focus on tech valuations, particularly in AI, could significantly influence Toronto's startup ecosystem. Companies like Shopify, which has made Toronto a tech hub, might see their valuations fluctuate based on the global tech market's perception of AI's role in e-commerce. Additionally, with political changes like Trump's re-election causing market volatility, businesses with international exposure, especially in tech and finance, might adjust their strategies or even valuations to hedge against geopolitical risks. The city's IPO market, known for its vibrancy, could become more selective, impacting how new ventures are valued and funded.
Why:
Toronto's economy is diverse but heavily weighted towards finance, tech, and real estate, sectors directly influenced by valuation practices. The city's role as a gateway for international business in Canada means global trends, like the cautious investment approach in tech or changes in U.S. politics, have a pronounced local effect.
Mergers, Acquisitions, and Real Estate Appraisal Trends
Toronto, known for its vibrant business environment, is set to witness a significant impact from the global surge in mergers and acquisitions (M&A) in 2025, with a staggering $2.6 trillion in capital ready for deployment. This trend is poised to reshape the city's business landscape, particularly in the tech and real estate sectors. With tech companies at the heart of this M&A activity, Toronto's AI and quantum computing firms could become prime targets for acquisitions, leading to a reevaluation of their market valuations. Alphabet's advancements might set a local benchmark, encouraging investors to look closely at valuation metrics.
The real estate market in Toronto is expected to reflect this M&A activity through increased demand for commercial spaces, especially in tech-heavy areas like the downtown core or emerging tech hubs like Liberty Village. This demand could lead to a significant uptick in property appraisals, as businesses seek strategic locations for expansion or new ventures. Furthermore, the S&P 500's new highs might inspire a bullish outlook on local investments, potentially inflating property values. Retail strategies might also evolve, with local businesses possibly following Nike's example, reassessing their valuation and market strategy amidst this M&A boom. Investment banks in Toronto are likely to capitalize on this, with a focus on valuation advisory services, acquisitions, and strategic partnerships.
Impact on Financial Sector: Toronto, being Canada's financial hub, directly feels the volatility of the Canadian Dollar. The surge in Bitcoin creates a dual-edged sword; while it could attract crypto investment, the volatility might deter traditional investors. The stalling of Stargate Surge, a hypothetical tech company, could be indicative of broader tech industry trends, potentially reducing foreign direct investment into Toronto's tech sector, which is critical for growth.
Trade with the US: Toronto's economy is heavily dependent on cross-border trade with the US. With looming tariff threats or trade disputes, businesses might face higher costs for imports or reduced exports, impacting profitability. A weaker Canadian Dollar could theoretically make Toronto's exports cheaper, but this benefit might be offset by higher costs of imported goods, directly affecting consumer prices and living expenses.
EV Battery Investments: Toronto's push towards becoming a hub for EV battery manufacturing could be at risk if the Canadian Dollar weakens significantly, as it might increase the cost of imported materials needed for production. This could slow down or alter investment plans, impacting job creation and economic diversification efforts.
Economic Health: A weakened currency could lead to short-term gains for tourism but long-term economic instability if not paired with robust economic policies.
Metro's Supply Chain Transformation: Metro Inc. has concluded a significant supply chain transformation project after seven years, enhancing its capacity to grow its business into 2025. This nearly billion-dollar investment aims to streamline operations and improve efficiency across its operations in Toronto.
Housing and Business Impact: Toronto's housing crisis is a central topic in business news, with the city's real estate market dynamics influencing local businesses. The city's high cost of living and housing shortages have broad implications, from increasing operational costs for businesses to influencing employee retention and attraction.
Businesses Struggling with Construction: The ongoing construction of the Ontario Line in Toronto's east end has led to significant disruptions for local businesses. The construction has caused decreased foot traffic, accessibility issues, and revenue losses for many establishments in the area.
Rental Market Shifts: There's been a noted shift in Toronto's real estate strategy, with developers focusing more on purpose-built rentals due to the housing crisis. This change aims to stabilize rental income for investors in the Greater Toronto Area (GTA), indicating a possible long-term trend towards more rental properties rather than condos for sale.
Economic Indicators: Unemployment in Toronto has reportedly climbed to 8.4%, a significant rise from the previous year, reflecting broader economic concerns. This increase impacts local businesses, particularly in sectors like retail and hospitality, where job losses are more pronounced.
Corporate Restructuring: The Toronto-Dominion Bank (TD) is undergoing strategic restructuring, which could have implications for its operations and influence the financial sector in Toronto. This news is particularly relevant for investors and those interested in banking sector news.
Real Estate Market Performance: December 2024 was reported as one of the worst months for Toronto's real estate market in over a decade, with sales plummeting and listings surging. This downturn, despite interest rate adjustments, paints a cautious picture for the real estate and related businesses in the city.
Traffic and Logistics: Toronto's notorious traffic issues have been described as causing "gridlock," leading to productivity losses and increased delivery times, affecting businesses' logistics and operational costs
Economic Impact from Business Events: Post-COVID recovery data indicates that Toronto is still below pre-pandemic levels regarding economic impact from business events. However, there's an anticipation of growth with events like Collision bringing significant visitor numbers. The revitalization of the events sector could boost local businesses, particularly in hospitality and tourism, thereby positively influencing their valuations.
Corporate Acquisitions and Mergers: While not directly Toronto-specific, the broader economic activities like the acquisition bids for U.S. Steel might influence investor sentiment in Canada. A successful, high-profile acquisition could lead to a more bullish outlook on industrial sectors, potentially increasing valuations for similar companies in Toronto. However, this is more speculative and depends on broader market trends.
Social Climate: Incidents like the antisemitic vandalism could negatively impact business valuations, especially in the retail and dining sectors where community trust and safety are paramount. Such events might deter investment and reduce customer traffic in affected areas, challenging businesses to maintain or grow their value.
Overall, the impact of recent news events on business valuation in Toronto is multifaceted. Positive economic trends like interest rate adjustments and increased municipal investment might elevate valuations, whereas social issues could pose challenges. Businesses will need to navigate these dynamics, potentially leveraging positive changes while mitigating the effects of negative events through strategic planning and adaptation.
I am always doing research and today I was trying to determine where we rank with my peers in Business valuation
Final Rankings:
Methodology & Score
Eric Jordan "25 Factors" Methodology 97.1%
CBV Comprehensive Report 81.4%
CBV Calculation Engagement 72.9%
CBV Estimate Engagement 64.3%
Toronto's Economic Outlook: Key Developments to Watch
Toronto's economy is facing a dynamic period with several factors influencing its trajectory. Here's a breakdown of the latest news and their potential impact:
Housing Market in Flux
Boosting Public Finances
Economic Growth and Employment
Positive Economic Signals: Canada's economy is exceeding growth expectations, which could translate to a robust economic climate in Toronto. This positive trend might affect business confidence, investment, and employment opportunities. However, the specific benefits for Toronto remain to be seen.
Looking Ahead
These developments suggest a complex and multifaceted impact on Toronto's economy. While the combined effects of these factors could be significant, the exact outcomes will depend on various elements, including the implementation of initiatives and the broader economic context.
This information is intended for general knowledge and informational purposes only, and does not constitute financial or investment advice. It is essential to consult with a qualified professional for personalized advice tailored to your specific circumstances.
Impact of Canada Becoming the 51st State on Private Company Valuations
Prepared by: Eric Jordan, CPPA
Date: January 9, 2025
This analysis examines the potential impacts of Canada hypothetically joining the United States as the 51st state, specifically on the valuation of privately owned businesses. It considers the interplay of taxation, market opportunities, regulatory changes, and employee welfare in shaping business dynamics. While the scenario is theoretical, it provides insights into the complex economic and social implications such an integration might have.
Tax Advantages
For Businesses:
• Corporate Tax Rates: Aligning with U.S. corporate tax structures could reduce tax liabilities by over 60% in some cases, increasing post-tax profits and boosting valuations.
• Simplified Tax Compliance: Eliminating cross-border tax systems may cut compliance costs, further improving operational efficiency and profitability.
For Individuals:
• Personal Income Tax: U.S. tax brackets might offer relief for mid-to-high-income earners, enhancing disposable income and consumer spending.
• Capital Gains Tax: More favourable U.S. capital gains frameworks could encourage investment in private enterprises, indirectly raising business valuations.
Access to Capital
Broader Capital Markets:
• Stock Exchanges: Canadian companies would gain access to U.S. exchanges like NASDAQ and NYSE, attracting a larger pool of investors and improving liquidity.
• Venture Capital Ecosystem: Easier entry into the robust U.S. venture capital scene could accelerate innovation and scaling for Canadian businesses.
• Banking and Loans: Lower-cost financing from U.S. institutions might reduce operational and expansion expenses, positively impacting valuations.
For Individuals:
• Enhanced access to U.S. investment options could increase personal wealth, potentially boosting local business investments and consumer spending.
Market Access and Competition
• Expanded Market Opportunities: With U.S. markets becoming domestic, Canadian companies could see exponential growth in sales volume and customer base, driving up valuations.
• Increased Competition: Local businesses may face significant pressure from well-established U.S. competitors, particularly in industries where economies of scale are critical.
• Sector Variability: Industries like manufacturing and technology might thrive, while smaller sectors lacking competitive advantages could struggle.
Regulatory and Legal Environment
• Standardized Regulations: Streamlining regulations under U.S. law may simplify operations, but it could also mean losing distinct advantages provided by Canadian-specific policies.
• Intellectual Property: Stronger U.S. intellectual property protections might benefit businesses focused on innovation, raising their valuation potential.
Impact on Employee Standard of Living
• Income Growth: Economic integration could lead to wage increases in high-demand industries as companies expand operations and compete for talent.
• Job Creation vs. Displacement: While new opportunities might arise, certain sectors could face job losses if companies relocate operations to lower-cost U.S. regions.
• Social Services: Transitioning to U.S.-style healthcare and social programs could reduce employee benefits compared to Canada’s current systems, potentially offsetting income gains.
The hypothetical integration of Canada as the 51st U.S. state would likely result in mixed outcomes:
• For Businesses: Enhanced access to capital, reduced taxes, and expanded markets could significantly increase valuations, particularly for companies poised to compete in a larger, more integrated market. However, increased competition and regulatory shifts might challenge smaller or less adaptable businesses.
• For Employees: The standard of living might rise in sectors experiencing growth, but challenges like job displacement and altered social service systems could pose risks to workforce stability.
These projections are speculative and depend heavily on integration policies and economic conditions at the time. Businesses and individuals would need to adapt to new market realities, leveraging opportunities while mitigating potential risks.
For a full review of my Eric Jordan “25 Factors Affecting Business Valuation” methodology go to https://pin.ca/fair-market-value/ found on the PIN website. This website explains in great detail and in legal terms, where this is supported in law and why this methodology is the most accurate way to value a private company in the world today.
HEALTHCARE
AT LEAST IN THE US, YOU CAN BUY HEALTHCARE THAT MAY OR MAY NOT PAY.
In major Canadian cities, wait times in hospital emergency departments can vary significantly based on the urgency of the medical condition, the time of day, and the specific hospital's capacity. Here are some general insights based on available information:
Wait Times: Recent data suggests that average wait times in emergency departments can range from several hours to over a day, with some posts on X indicating waits of 5 to 22 hours in cities like Montreal, Toronto, and London. The median wait time for treatment across Canada has been reported to be around 27.4 weeks for non-emergency procedures, but emergency department waits are generally shorter, though still can be quite lengthy depending on the situation.
Here are five situations where long wait times have led to negative outcomes for patients:
Delayed Emergency Care: In one instance in Montreal, a patient with a severe condition, classified as needing urgent care, waited significantly longer than the recommended 30 minutes, leading to a worsening of their condition before treatment could be administered. This scenario highlights how extended wait times can exacerbate health issues, potentially leading to more severe outcomes or even preventable deaths.
Death in Waiting Room: There have been documented cases where patients have died in hospital waiting rooms due to extremely long wait times. For instance, in Winnipeg, a patient passed away after waiting 33 hours for a bed, illustrating the extreme consequences of overcrowded emergency departments where timely care isn't possible.
Hallway Medicine: Patients who require immediate medical intervention but end up waiting in hallways due to bed shortages might not receive the privacy or the quality of care they need, which can lead to medical errors, infections, or deterioration of their health condition. This situation has been noted as a common occurrence, especially during peak times or pandemics, where hospitals are overwhelmed.
Missed or Delayed Diagnoses: Long waits can lead to patients leaving before being seen by a doctor, which was reported in Eastern Health where follow-up calls were made to patients who left without medical consultation. Such scenarios can result in missed or delayed diagnoses, where early intervention could have been critical, potentially turning manageable conditions into serious health crises.
Chronic Pain and Mental Health Deterioration: People with chronic conditions or mental health issues often suffer from prolonged wait times for specialist care or emergency interventions. For example, someone with chronic back pain or mental health emergencies might face waits of months for specialists or hours in emergency settings, leading to increased pain, stress, or even self-harm due to lack of timely care. This can drastically reduce quality of life or lead to acute episodes that require more intensive treatment than might have been necessary with earlier intervention.
These examples underscore the impact of wait times on patient outcomes, highlighting the necessity for systemic improvements in hospital wait management and capacity.
Economic Policy Debate Following Trudeau's Resignation: With Pierre Poilievre stepping into the spotlight as a potential prime minister candidate, his economic policies are under intense scrutiny. His 'dollar-for-dollar' law proposal aims to reduce government spending to fight inflation, which could impact business valuations by potentially stabilizing the economy but might also introduce uncertainties about government spending and support for industries. This policy shift could either increase business valuations by lowering operational costs due to reduced inflation or decrease them if businesses rely on government contracts or subsidies.
Energy Sector Developments: Posts on X indicate a positive outlook for Canadian energy producers, particularly with LNG Canada's potential to reduce discounts on natural gas and the Canadian dollar's weakness providing a boost to revenue when converted back to CAD. This could lead to higher valuations for energy companies due to increased cash flows. The ongoing share buybacks financed by record free cash flow further signal strong financial health and confidence in future profitability.
CRA's Capital Gains Tax Increase: The Canada Revenue Agency's decision to implement changes to the capital gains inclusion rate despite the prorogation of Parliament has sparked debate over its legality and impact on business valuations. Businesses and investors might adjust their strategies or delay decisions due to this uncertainty, potentially affecting how they are valued in the market. This could lead to a reevaluation of investment holdings and business strategies to optimize tax implications.
Sports Franchise Valuations via Trades: While not directly business news in a conventional sense, the trades in sports like the acquisition of Dejon Allen by the B.C. Lions from the Toronto Argonauts and the trade involving Caden Price to the Lethbridge Hurricanes from the Kelowna Rockets, reflect on team valuations and strategies. These trades can indirectly influence local economies, fan engagement, and thus, the valuation of sports franchises through increased interest, attendance, and merchandise sales.
GFL Environmental Inc. Sells Environmental Services Stake: GFL Environmental Inc., a Canadian waste management giant, is selling a majority stake in its environmental services to two private equity firms, Apollo Global Management and BC Partners. This transaction will deliver $6.2 billion in cash proceeds, significantly impacting GFL's valuation and strategic direction. This move could reflect a broader interest by private equity in environmental services, suggesting a high valuation for such businesses.
Former Annapurna Staff Form New Company: Former staff members of Annapurna Interactive have established a new company which has now acquired the portfolio of Private Division, a former indie label of Take-Two Interactive that was recently shut down. This acquisition includes games like 'Tales of the Shire', the 'Kerbal Space Program' series, and an unannounced project by Game Freak. This transition has led to some layoffs at Private Division, reflecting on the valuation and strategic shifts within the gaming industry. Trending on X.
These stories highlight significant movements within private businesses, affecting their valuations, strategic directions, and the broader market they operate in.
Metro's Supply Chain Transformation Finalized: Metro, a major Canadian retailer with a significant presence in Toronto, has completed its seven-year, nearly billion-dollar supply chain transformation. This milestone could impact Metro's valuation by enhancing operational efficiency, potentially increasing profit margins, and positioning the company for growth in 2025. This news suggests an upward adjustment in Metro's market value due to improved logistics and distribution capabilities.
The Body Shop Canada's Sale to Private Equity: An Ontario court has given The Body Shop Canada the approval to sell the majority of its business to a private equity firm, co-founded by the creator of Yogen Fruz. This sale, which involves restructuring and a significant change in ownership, directly affects the company's valuation, providing insights into how distressed assets are valued and sold in the Canadian market.
Wazo Furniture Goes Out of Business: Wazo Furniture, which had locations in Toronto, has gone out of business, leaving many customers with unfulfilled orders. This failure can influence the valuation of similar businesses by highlighting the risks associated with customer deposits, inventory management, and cash flow in the furniture industry.
Toronto Development Land Market Value Decline: A notable transaction in Toronto's real estate market involved a 39-story high-rise site in the entertainment district selling for 45% less than its purchase price two years and eight months prior. This significant decrease in value for development land in downtown Toronto indicates a cooling or correction in the real estate market, affecting valuations of similar properties and projects.
My friend Kash swears this is true: a real estate broker who once got stuck in an elevator in the CN Tower with three tech investors from San Francisco. He had exactly 58 seconds of Wi-Fi and pitched his newest development—a condo project promising “views of Lake Ontario so clear, you could spot a salmon jumping.” By the time the elevator doors opened, he had three verbal commitments, a LinkedIn endorsement, and a fresh coffee order delivered right there in the lift. Toronto is the kind of city where opportunities find you, and believe me, Kash is always ready.
Dim Sum is where the real negotiations happen. This Chinese friend, Li, says that no Toronto business deal is truly done until someone orders the BBQ pork buns at Rol San. There’s an unspoken rule: the number of dumplings shared equals the level of trust between parties. Li always says that contracts are written in ink, but friendships are forged in soy sauce.
My town's charm lies in its ability to balance traditions with its fast-paced growth. From the old-school mom-and-pop shops in Little Italy to the cutting-edge start-ups in Liberty Village, the city is a bazar of opportunities. We all dream of global success, and also know the value of a good poutine at 2 a.m.
Enjoy my town and call me anytime.
Eric Jordan 877 355 8004 - Eric@pin.ca
Welcome to today’s podcast on business valuation, financing, and the hidden power of intangible assets. I’m Eric Jordan, CPPA, and I’m here to offer you valuable insights into how intangible assets can significantly impact the valuation of a business and its ability to secure financing.
Today, we’re focusing on Toronto’s entrepreneurial landscape, showcasing real-world examples of successful founders who have mastered the art of leveraging intangible assets to build business value. We'll also explore the key takeaways for business owners, investors, and stakeholders who want to understand how to recognize, measure, and monetize these hidden assets. Let’s dive in.
Michele Romanow — Revolutionizing Fintech
Our first story is about Michele Romanow, co-founder of Clearco, formerly known as Clearbanc. Michele disrupted traditional venture funding by introducing a revenue-sharing model for startups. Instead of giving up equity, founders receive funding in exchange for a percentage of future revenue.
Valuation Insight: This is a classic example of how innovative revenue models and industry disruption create intangible value. Disruption and innovation are core components of a company's intangible assets, significantly boosting its valuation. In this case, Clearco’s unique approach to financing increased its market appeal and valuation.
The Superfan Entrepreneur
Next, we have Nav Bhatia, known as the "Superfan" of the Toronto Raptors. But he’s also a prominent entrepreneur, owning one of the most successful chains of Hyundai dealerships in North America. Bhatia’s brand as a community leader and philanthropist sets him apart from competitors.
Valuation Insight: Personal brand and community recognition are intangible assets with significant impact on valuation. Nav’s status as a "superfan" and cultural icon adds credibility and customer loyalty, which directly influences the perceived and market value of his dealerships.
Joanna Griffiths — Innovating in Apparel
Joanna Griffiths, founder of Knix, redefined the intimate apparel industry with leakproof underwear and body-positive marketing. Using crowdfunding and venture capital, Knix built a loyal customer base with a direct-to-consumer model.
Valuation Insight: Customer loyalty and brand equity are key drivers of valuation. Joanna’s ability to create strong social proof and lifetime customer value demonstrates how a dedicated customer base translates into higher valuation multiples.
John Ruffolo — Powering the Venture Capital Ecosystem
John Ruffolo is a major figure in venture capital, founding OMERS Ventures and Maverix Private Equity. His role in supporting Toronto’s startup ecosystem is unmatched.
Valuation Insight: Access to capital and a strong investor network are crucial intangible assets. Companies backed by established VC firms often enjoy higher valuations thanks to their access to growth capital, mentorship, and strategic support.
Bruce Poon Tip — Sustainable Travel Visionary
Next, let’s look at Bruce Poon Tip, founder of G Adventures, a global leader in sustainable tourism. His emphasis on social responsibility and ethical tourism adds a unique value proposition.
Valuation Insight: Commitment to sustainability and social responsibility builds brand equity, creating intangible value that boosts valuation. Buyers and investors place higher value on companies with strong ESG (Environmental, Social, Governance) principles.
Karan Walia — Innovating in Digital Compliance
Karan Walia’s Clutch platform simplifies the online car-buying process. Leveraging technology and digital transformation, Clutch raised millions in venture capital.
Valuation Insight: Digital scalability, tech-enabled processes, and frictionless customer experiences are powerful intangible assets. Companies like Clutch attract premium valuations due to their ability to scale efficiently and reduce customer friction.
Ronnen Harary — Changing the Face of Children’s Entertainment
Ronnen Harary, co-founder of Spin Master, introduced us to iconic products like PAW Patrol and Hatchimals. The company’s success is underpinned by its intellectual property (IP) portfolio and content licensing rights.
Valuation Insight: IP and licensing rights are among the most valuable intangible assets. Spin Master’s proprietary content and toy patents provide sustained revenue streams, enhancing the overall valuation of the business.
Shiza Shahid — Social Impact and Ethical Entrepreneurship
Shiza Shahid’s Our Place kitchenware brand promotes ethical sourcing and sustainable production. Her alignment with social causes resonates deeply with consumers.
Valuation Insight: Social impact initiatives drive goodwill, enhancing business valuation. Consumers increasingly value ethical business practices, which lead to higher brand loyalty and perceived value.
Joe Mimran — Building Iconic Retail Brands
Joe Mimran’s influence extends to Club Monaco and Joe Fresh—two iconic retail brands. His creative direction, brand loyalty, and design acumen have become critical value drivers.
Valuation Insight: Brand equity and creative leadership drive business valuation. Intangible assets like these often contribute to premium multiples during business appraisals.
Mandy Rennehan — The Blue Collar CEO
Mandy Rennehan’s Freshco, a commercial maintenance firm, disrupted the facilities management industry. Her advocacy for skilled trades and industry reputation set her apart.
Valuation Insight: Industry leadership, reputation, and advocacy are powerful intangible assets that enhance valuation. Service-based businesses like Freshco benefit from strong goodwill and community trust.
Financing Sources for Toronto Entrepreneurs
If you’re looking for financing options in Toronto, here are some valuable sources:
Business Development Bank of Canada (BDC): Loans and advisory services for startups. We have a great relationship here.
Ontario Centres of Innovation (OCI): Grants for R&D initiatives.
Canada Small Business Financing Program (CSBFP): Loans for equipment and leasehold improvements.
Angel Investors & Venture Capital: Tap into Toronto’s strong angel network.
Crowdfunding Platforms: Validate demand and raise funds online.
These funding sources, combined with an understanding of the Eric Jordan "25 Factors Affecting Business Valuation" methodology, enable entrepreneurs to highlight the value of intangible assets like brand equity, customer loyalty, and industry influence.
These stories of Toronto’s leading entrepreneurs illustrate the power of intangible assets. Whether it's intellectual property, brand equity, or customer loyalty, these hidden drivers play a pivotal role in business valuation and financing.
If you’re looking for help with business valuation, whether for financing, sale, or internal review, reach out to me, Eric Jordan, CPPA. I use a proprietary 25-factor methodology that reveals the true value of a business—not just its tangible assets, but its intangible strengths too.
To learn more, visit my website at pin.ca or get in touch directly. Let’s unlock the full value of your business together.
Thanks for listening, and stay tuned for our next episode!
Obtain a professional business valuation in Toronto, priced between $1,500 and $15,000. This service is essential for various needs including business sales, purchases, partnership disputes, and determining share value. It also addresses tax implications related to CRA compliance, Section 86 estate freezes, and Section 85 rollovers. Furthermore, it provides support for divorce settlements by offering accurate appraisals compliant with the Canadian Income Tax Act, ensuring fair market value consideration for all intangible assets.
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Eric Jordan, CPPA
877 355-8004
pindotca@gmail.com