We follow Canada's governing legislation on business valuation.
WE SOLVE
Partnership Disputes, Divorce issues, Purchase and Sale Values, Share Value, Income Valuation, CRA Section 86 Estate Freeze,
Section 85 Rollover.
Contact us now for examples of how we resolved issues just like yours.
A business appraisal upon which the bank is willing to lend up to 85% of the determined valuation amount often goes a long way to solving problems.
Intangible Asset Specialist.
FREE- For discussion purposes only, I can usually give a ballpark valuation number with the initial free consultation.
Immediate Solutions - Call or Text 877 355 8004 - pindotca@gmail.com
The Eric Jordan “25 Factors Affecting Business Valuation” methodology values the often forgotten Intangible assets that make up 70% to 90% of the value in your business.
Further layer of accuracy
By identifying a potential buyer profile, marketing plan, and time required for your business to sell, we add a further layer of accuracy that can be achieved without
the business being up for sale.
VALUATIONS SO ACCURATE THEY CAN REVEAL WHO WOULD BUY YOUR BUSINESS EVEN WHEN IT IS NOT FOR SALE
Depending upon purpose we don’t always have to determine a buyer when doing a business valuation; but for the most accurate valuation report it is recommended. Nobody else can offer this, but we can; with proof of performance below.
111 Queen Street E., Toronto, ON, CANADA M5C 1S2
Call or Text 877 355 8004 from Toronto and the surrounding areas.
pindotca@gmail.com
According to Tax Act Legislation and Eric Jordan who developed the “25 Factors Affecting Business Valuation” methodology; we would go through the
25 Factors Affecting Business Valuation
Each factor has a link explaining why a Venture Capitalist Style valuation requires a valuator who has been in your shoes for 15 years or more owning and operating a business; and why other valuators generally don’t meet the “experience” criteria to begin training.
HOW THE PROCESS WORKS
We conduct every business valuation as if there was going to be a sale of the subject business at “FAIR MARKET VALUE” as the tax act legislation in Canada and other countries require.
The legal definition of Fair Market Value in Canada, is the highest price, expressed in money, that property
would bring in an open and unrestricted market, between a willing buyer and a willing seller who are both knowledgeable, informed,
and prudent, and who are acting independently of each other and neither party being under any compulsion to buy or sell.
A 2023 Business Valuation Report using the Eric Jordan “25 Factors Affecting Business” methodology:
A. Identifies
B. Measures
C. Weights
D. Estimates the value to all the tangible and intangible assets in a business.
ACCURACY is not possible without having an actionable plan that could find a buyer for the business you want evaluated.
METHODOLOGY
The Eric Jordan “25 Factors” methodology:
(1) Will show profiles of the most likely buyers of the subject business.
(3) Will show some reasonable plans to reach those profiles identified.
(4) Will show a marketing team who is capable of executing those plans to reach the profiles and at what cost and a time estimate for when a sale should be expected to happen.
(5) Will identify a corporate lawyer who has competent staff, who will not drop the ball and who will push a sale through. That same lawyer should be a tax expert who can advise the client on tax issues regarding the business sale.
(6) Will direct you to fractional employees you can hire to bring this all together.
Immediate Solutions - Call or Text 877 355 8004 - pindotca@gmail.com
EXAMPLES BELOW PROVE OUR ACCURACY
2023 - Fees were 3% of total sale:
We have a case in point where, in the valuation process, we determined that the business owner had been a welder prior to opening the subject business. We determined that trenchers, plumbers, or welders would be good buyer targets.
We put the seller in touch with a marketing team we know. The marketing team bought the profiles of the trenchers, plumbers, and welders in the area. The marketing team had an outbound caller making sales calls to these potential buyers. There was other social media advertising put in place.
The client was put in contact with a corporate lawyer, who is also a tax expert, to facilitate the transaction. The business valuation, the marketing and advertising, and the corporate lawyer all total, on a sale of just under a million dollars, was in the range of 3% of the total sale. The buyer was identified in the first week, but it took four months for the deal to close.
(The business sold for 100% of the valuation price and yes we can let you talk to the seller)
2023 - Sold for 100% of Valuation Report Price:
In a second case that was much smaller and a much different type of business, it was a different situation. The business valuation proved that the business was worth more money to the buyer than the seller and more than the agreed upon and accepted offer to purchase.
The valuation was structured so the bank could see proof of value and TD Canada Trust funded the business at 85%.
The secret is understanding how to prove the value of intangible assets in a business to the bank in a manner they can accept for funding purposes.
We work fot the buyer, the seller, and the bank so everyone can win.
October 2023: Same City but this time a restaurant:
BMO was able to give 85% Financing based on our Valuation Report
Late October 2023: Large Restaurant in a large city.
RBC based on our Valuation Report was able to give 85% finding on the sale.
Another Secret; We have a Loan Broker/Agent who understands how to present our valuation reports to the banks. Let us introduce him to you.
If you are planning to sell following this methodology and internal sale plan expect fees to range below 10%
In comparison the real estate agents, business brokers, and merger and acquisition people say they can only sell 25% of businesses they list for sale. (at any price) while charging fees of 10% to 18% without legal fees. And they still charge retainer and monthly fees.
Link
Harvard Law Review states that according to most studies, between 70 and 90 percent of Mergers and Acquisitions fail.
Link
Business Valuation is our Business
111 Queen Street E., Toronto, ON, CANADA M5C 1S2
Call or Text 877 355 8004 from Toronto and the surrounding areas.
pindotca@gmail.com
