Expropriation: Protecting your interests and the value of your business

With major infrastructure projects being supported by government, such as the proposed high-speed rail network between Québec City and Toronto, expropriations will soon be making headlines in Canada. For business owners, expropriation brings uncertainty, worry and many questions. How can I protect my interests? How do I make sure I receive proper compensation? And how can I navigate this process to protect the value of my business?

The Budget 2025 Implementation Act, which enacts measures proposed in the Federal Budget, contains changes to the Expropriation Act and other laws that make it quicker for the federal government to acquire land for the proposed railway.

What is expropriation?

Expropriation is a process through which a public authority, including municipalities and the federal and provincial governments, can compel the surrender of private property, such as land or buildings, for reasons of public interest. For a business, this means relocating, adapting operations and incurring financial losses and additional expenses, for which they can be compensated.

Real and often underestimated consequences

Expropriation can cause a business to incur various types of operational costs and damages, including moving expenses, loss of clients, temporary disruption of business and equipment replacement. In some cases, a company might be unable to relocate, which can bring about a permanent loss of value.

Often there are consequences business owners may overlook. For example, a business forfeiting a parcel of land may have its supply chain and logistics disrupted, or a company relying on client proximity may experience a drop in traffic and revenue when it relocates. Each situation is unique and requires in-depth analysis to accurately quantify damages.

Why call on a business valuation advisor?

When faced with expropriation, calling on an experienced business valuation advisor is essential to provide clarity and the support you need every step of the way.

Tailored analysis

Business valuators obtain a thorough understanding of a company’s operations and situation to identify the various impacts of the expropriation.

Detailed quantification of economic impacts

Business valuators calculate the economic consequences of expropriation, including moving costs, business interruptions, loss of clientele, or a decline in business value. Providing detailed financial analysis, strong evidence and credible testimony strengthens claims with the relevant authorities.

Support every step of the way

A business valuation advisor can intervene as soon as a notice of intent to expropriate is delivered. They can provide preliminary estimates to guide decisions and produce timely, diligent, and comprehensive reporting to support claims or negotiations. This step-by-step approach delivers effective strategies tailored to each situation.

Multidisciplinary approach

More than one specialist may intervene in an expropriation, including real property appraisers, urban planners, tax specialists, and lawyers, who bring their relevant expertise to the expropriation. Business valuation experts can coordinate the various professionals to determine an amount that reflects the overall economic impact of expropriation. This approach ensures that a comprehensive and credible assessment is delivered.

Tailored support and advice

A business valuation advisor helps simplify and streamline the process, enabling owners to focus on running their business while receiving support during what is often a stressful time.

Calling on an experienced business valuator maximizes your chances of receiving fair compensation.