What is a Chartered Business Valuator?

It is often said that a business is worth exactly what another person is willing to pay. Is that always true? How about the company’s profits and cash flows? The value of the company’s net assets? How about goodwill and intangible assets? What about the company’s future growth projections? Who can assess what a business is worth? An accountant? A lawyer? A real estate agent? A business broker? How can you be certain you are getting a fair value for your business? Buyers, sellers and intermediaries find reassurance with a Chartered Business Valuator (CBV), widely recognized as the premier credential for business valuators in Canada.

The Canadian Institute of Chartered Business Valuators (CICBV) is nationally and internationally recognized as the pre-eminent business valuation organization in Canada. Founded in 1971, the CICBV establishes the practice standards, educational requirements, and ethical guidelines, which support and promote the integrity of the CBV profession for the benefit of its more than 1,400 current members.

Attaining a CBV designation takes a minimum of 2 years, with most needing 3 years to complete the program. In order to receive a CBV, an individual must complete a number of valuation courses, pass a comprehensive exam, hold a bachelor’s degree from an accredited University, and have 1,500 hours of approved valuation experience.

Determining the value of a privately owned business comes down to a valuation professional making a professional judgment call based on a number of qualitative and quantitative factors and multiple valuation methods. This underscores the importance of hiring a highly qualified and experienced valuation professional.

When it comes to selling a closely held or family owned business, the most common mistake sellers make is unrealistic expectations, and that’s typically tied to poorly prepared valuations. By working with a Chartered Business Valuator, an owner can rest assured that the valuation reflects fair market value for their business. Furthermore, a valuation report gives buyers and sellers a shared understanding around which to conduct negotiations.

For more information on The Canadian Institute of Chartered Business Valuators, please visit their website at www.cicbv.ca

Should you have a question about our business valuation process, please don’t hesitate to contact us.