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What is a Chartered Business Valuator?

As a business owner, you may have come across the term “chartered business valuator” (CBV) and wondered what it meant. A Chartered Business Valuator, or CBV, is a professional who provides valuation and consulting services to businesses. This valuation can be used for various purposes, such as buy-sell agreements, tax planning, estate planning, or divorce settlements. They can provide valuable insights into the financial health of a business and help owners make informed decisions about their company’s future. This article will discuss what a CBV is, what they do, and how they can help your business.

What Is Involved in a Business Valuation?

A business valuation is a procedure of determining a company’s economic value. This value can be used for many purposes, such as to help set a selling price or determine a company’s worth for tax or estate planning purposes. The valuation will consider factors such as the financial history of the company, its assets and liabilities, projected future earnings, and current market conditions. A CBV will use its expertise and knowledge to accurately evaluate your business.

The first step in any valuation is gathering information about the company’s value. This includes financial statements, tax returns, and other relevant documents. The CBV will also interview key personnel, such as the CEO or CFO, to better understand the business. Once all of the information has been gathered, the CBV will begin the analysis.

They will start by looking at the historical financial performance of the company. This will give them an idea of how the business has performed in the past and what future trends they can expect to see. They will also look at the current market conditions to see how they might impact the company’s value. After their analysis, they will provide a report with their findings and recommendations.

Understanding a Chartered Business Valuator (CBV) Report

Once the CBV has completed the analysis, he/she will provide a report with their findings and conclusion. What differentiates this report from non-CBV reports is that it strictly follows the Canadian Institute of Chartered Business Valuators (“CICBV”) practice standards. These standards set the appropriate levels of analysis and due diligence a chartered business valuator must follow when preparing a report.

The report will include an overview of the valuation process and the CBV’s opinion of value. It is important to note that a CBV’s opinion of value is just that – an opinion. The final decision on what to do with this information is up to the business owner.

A CBV report is used for many purposes, such as setting a selling price, negotiating a buy-out, or planning for taxes and estate purposes. If you are thinking about selling your business, it is highly recommended that you obtain a professional valuation from a chartered business valuator. This will ensure you get the most accurate information to make informed decisions about your business.

What Methodologies Do CBVs Employ?

CBVs use a variety of methodologies to value businesses, including the market approach, the income approach, and the asset-based approach. Let’s briefly explore each of these methods.

Income-based Approach

The income-based approach discounts future cash flows to present value. This method is often used to value privately held companies, as it does not require access to sales data. The discount rate used in this calculation reflects the riskiness of the cash flows being valued.

Asset-Based Approach

The asset-based approach values a business based on its net assets. This method is typically used for businesses with significant intangible assets, such as patents or trademarks. It can also be used for businesses with negative net worth.

Market-based Approach

The market-based approach uses comparable sales data to value a business. This data can be sourced from public records, such as sales of similar businesses in the same industry. This approach is most commonly used when valuing publicly traded companies.

What Services Do CBVs Provide?

CBVs are often hired to provide an objective, unbiased opinion on the value of a business or company. This can be incredibly important when two parties are negotiating a sale, merger, or acquisition or when shareholders are disputing the value of their holdings.

In addition, chartered business valuators may also be asked to appraise intangible assets such as patents, trademarks, and customer lists.

Let’s take a closer look at some of the services CBVs can provide.


A valuation estimates the worth of a business, asset, or liability. You might need a valuation for many reasons, such as selling your business, tax planning, or estate planning.

Litigation Support

Litigation support is when a CBV provides expert testimony and analysis in court. This could be for things like shareholder disputes or divorce proceedings.

Financial Advisory

Financial advisory is when a CBV provides advice on financial matters to its clients. This could include advice on raising capital, buying or selling a business, or succession planning.


Consulting is when a CBV provides advice and guidance to its clients on various business matters. This could include anything from market analysis to developing growth strategies.

Our Final Thoughts

We hope this article has given you a better understanding of what CBVs do and the services they provide. If you are considering buying or selling a business or are involved in a business dispute, it is important to seek out the services of a qualified CBV.

At Amano Financial Advisory Services Ltd., we’re ready to help you with all your business valuation needs. You can be confident that you are making sound decisions about your business. Contact us today to learn more!