We need to remember the Canada Income Tax Act requires us to always apply "fair market value" and "reasonable judgment and objectivity in the selection and analysis of the relevant facts of each valuation". This experience is the purview of the entrepreneurial valuator who has usually had personal experience in the liquidation of assets on both the buy side and the sell side.

An entrepreneurial valuator with relevant experience, especially one with auction experience, is going to determine a fair market liquidation cost if in fact the factor is relevant.

Valuators with hands-on business owner experience are well-equipped to estimate the cost of liquidation, taking into account factors such as asset disposal, contract terminations, and outstanding liabilities. This knowledge helps in understanding the business's value under distress scenarios.

Meanwhile, accountants may have limited experience in estimating the cost of liquidation, which requires an understanding of asset disposal, contract terminations, and other practical considerations.
Accountants using the income approach might not account for the specific purpose of each valuation, potentially leading to inaccurate comparisons between businesses with different valuation objectives.

Business brokers may have limited experience in estimating the cost of liquidation, which requires an understanding of asset disposal, contract terminations, and other practical considerations.
The cost of liquidation is unlikely to be considered in sale price data, as it focuses on the value of the business as a going concern rather than the potential costs associated with winding it down.

Disruptive Valuation Methodology:
This proves why Eric Jordan’s “25 Factors Affecting Business Valuation” methodology combined with 15 years or more of business owner operator experience produces the most accurate option for all stakeholders.
This methodology is proving to be “disruptive” in the valuation industry.

WHY would you accept a valuation from a BROKER OR ACCOUNTANT using flawed data or outdated valuation approaches ?
Hard Asset Approach, Income Approach, and Market Approaches to business valuation should never be accepted in 2023 when we know better.
These are approaches used by unscrupulous agents and others using inaccurate data and accounting formulas to suggest a business value that might fit well into their business plan; but not yours.

Venture Capitalists are the valuers of the biggest companies in the world. Think Peter Thiel.

Neither Peter Thiel, Elon Musk or any of the other top 150 Venture Capitalists in the world are accountants or real estate agents.

The biggest and best companies in the world are not trusting accountants or realtors for valuation purposes; WHY WOULD YOU?

Trust your local accountant who sticks to accounting. That is who we depend upon to start your valuation process.

“None of the top 150 valuators in the world are accountants.”

The top business valuators in the world are Venture Capitalists like Elon Musk, Peter Thiel, and our Canadian example Mark D Wiseman.

Of the 200,000 honest, hard working, professional accountants in Canada; less than 1% suggest they can do business valuations.

We believe this radical 1% of would be monopolists have no business doing business valuations in 2023 using outdated, unreliable, misleading and dishonest approaches to business valuation.
These outdated approaches are: Hard Asset, Income and Market approaches to business valuation.

Those 1% and their methodology was proven wrong in 2009 by Mark D Wiseman and the Canadian Pension Plan Fund.

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.

That day in 2009 was the day when accounting based valuators had their methodology turned on its head.

    (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.

Mark D Wiseman has been added to a list of the top 150 Venture Capitalists in the world (Researched in March 2023) NONE OF WHOM are accountants.

The 150 top Venture Capitalists in the world who value some of the world's most valuable companies should be considered the world’s best valuation experts. And again, none of them, to the best of our research, are accountants. Does anyone seriously think these top experts would employ the old hard asset, income, or market approach to business valuation used by most accountant based valuators today? Ask Warren Buffet?

Venture Capitalists use honest accountants to supply reliable financial data that has generally been arranged for tax purposes. Clients have already paid these accountants tens of thousands of dollars to produce these documents that are generally needed to start a valuation.

This is also the basis of Eric Jordan’s “25 Factors Affecting Business Valuation” methodology. Honest Accountants produce the financial records required to start the valuation process. This is where, in private company valuations, experienced business owner/operators take over. These people with 15 years or more of relevant business owner/operator experience, are trained in the use of Eric Jordan’s “25 Factors Affecting Business Valuation”. They identify, measure, weigh, and put an estimated value on the intangible assets that make up the majority of most company value since at least 2009. This is when the Mark D Wiseman/Skype moment changed business valuation history.

Clients have paid their accountants tens and sometimes hundreds of thousands of dollars for accounting. We trust these professionals FOR ACCOUNTING AND TAX PURPOSES; but NOT for Business Valuation.

NONE of the top 150 valuators in the world are accountants.

Consider Warren Buffet and his partner Charlie Munger and what they have to say about accountants overeaching, and not staying in their proper lane. And not sticking to accounting.

Charlie Munger on accountants:
Click Here
Warren Buffet on accountants:
Click Here

The 99% of Accountants who stick to accounting are well respected. The other 1% give the rest a bad name.