What about fair market value in business valuations?

My qualifications are based on 8 points:

1. When one reviews the Income Tax Policy paper, it suggests that my methodology and process meet and exceed the requirements for considering “fair market value” and producing a business valuation report that follows with the Income Tax Act Policy Paper.

2. I am accredited by, and a member in good standing of, The Canadian Personal Appraisal Group (CPPA). The CPPA has more than 700 members from all provinces. As a CPPA, I am experienced in the valuing of tangible and intangible assets. CPPAs have been accepted as experts in courts across Canada. One can go to www.canlii.org and in the Document Text search field enter “Canadian Personal Property Appraisers Group”. A search here will find at least eight cases for review. Being a member of any professional group such as doctor, lawyer, accountant, auctioneer, or estate agent is not required under the Income Tax Act. Being experienced in producing a compliant “fair market value” is important, however.

3. Because the intangible assets are identified, documented, and measured, they can be filed under Uniform Standards of Professional Appraisal Practice (USPAP) in the US and similar legislation in Canada.

4. My business valuation experience covers approximately 200 valuations incorporating tangible and intangible assets during the period 2013 to 2022 across Canada, including Quebec. Clients are business owners and lawyers spanning most industries, including manufacturing, tech, agriculture, retail, wholesale, online, transportation, hauling, trades, the service sector, and crypto and non-fungible tokens.

5. My methodology was accepted by Judge Macleod, Court of Queen’s Bench of Alberta document enclosed in a judgement handed down on 9 May, 2017. 

6. I can demonstrate more than 30 years of relevant business experience, including determining the value of tangible and intangible assets in various ventures. It is my professional assertion that this experience is an important contributor to the creation and application of my valuation methodology.

7. By building on my relevant business experiences, I produced the proprietary “25 Factors Affecting Business Valuation Model”. This evolved, along with my valuation experience, to be the robust system as it now stands. My most recent addition for valuation consideration was blockchain assets and non-fungible tokens, which is a highly specialized area and evidence of the utility of my approach.

8. See below a review of the 41 points in the Tax Act Policy Paper that suggests Eric Jordan’s “25 Factors” methodology is more than compliant with the Income tax Act, while others are likely to be found non compliant.

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