FAQ's
What is a Chartered Business Valuator (CBV)?
Chartered Business Valuators are experts who quantify the worth of all, or part, of a business with the ability to determine the value of tangible and intangible assets, and then explain their analysis in an easy to understand manner. The Canadian Institute of Chartered Business Valuators (CICBV) was established in 1971 and is nationally and internationally recognized as the pre-eminent business valuation organization in Canada. A Chartered Business Valuator receives their designation after completion of at least six courses, extensive full-time or equivalent experience, and passing national exams.
Why is a valuation required?
Business valuations are prepared for a variety of purposes, including:
- potential purchasers/vendors looking to buy or sell shares in private companies
- matrimonial disputes – division of matrimonial property
- shareholder disputes
- corporate reorganizations and income tax planning
- estate planning and reporting purposes
- expropriations
- shareholder agreements
How does the valuation process get started?
First, we’ll need to discuss the purpose of the valuation and the type of valuation report required. Next, we’ll prepare an engagement letter outlining the work to be performed, the report to be issued and the costs. Then, we’ll provide a list of required documents and information about the business that we will need in order to get the valuation started.
Are there different types of valuation reports?
Indeed, there are basically three types of valuation reports – Calculation, Estimate and Comprehensive. The amount of analysis, the level of detail in the reports and the degree of reliance of course, varies with each type of valuation report. Prior to beginning any valuation assignment, we discuss the purpose of the report and who might be relying on it.
What does a valuation cost?
The cost of a valuation depends on a few things – the type of report required, the quality of documentation or information provided and the amount of time required to complete the analysis and prepare the report. We generally ask that you provide us with recent financial statements which will enable us to give you an estimate of our fees. If we find that our fees might exceed our estimate, we will inform you immediately and work with you to complete the assignment for an acceptable fee range.
What does a Guideline Income Analysis cost?
Again, the cost of preparing a Guideline Income Analysis (to determine income for child support or spousal support) depends on a few things – the quality of documentation or information provided and whether there is business income or corporate income to be considered. Each business that the spouse has an interest in, will add to the complexity of the analysis and therefore the time required to complete the Guideline Income Analysis. And always, if we find that our fees might exceed our estimate, we will inform you immediately and work with you to complete the assignment for an acceptable fee range.
How long does a valuation report take?
In a simple situation where all the required information is readily available, a valuation report can be completed in two to three weeks. However, larger and more detailed reports generally take much longer because of the volume of information being reviewed, the complexity of the business, and the necessity to gather most or all of the supporting documents before the detailed analysis can be started. We can provide an estimate of timing after a review of the company's financial statements, the valuation date, and the availability of information.