What is a Chartered Business Valuator?
The Chartered Business Valuator (CBV) designation is the premier credential for professional business valuators and litigation support advisors in Canada. CBVs are financial professionals governed by the Canadian Institute of Chartered Business Valuators.
CBVs quantify the value of a business, its securities, or its intangible assets. CBVs use a variety of valuation methodologies to arrive at a conclusion, and explain their approach, methodology and conclusions in an easy to understand manner. In the context of litigation, CBVs quantify the damages or losses arising in a legal dispute.
Respected and recognized:
CBVs are respected and recognized as experts by the courts in cases involving financial matters, such as shareholder or partnership disputes, securities law, intellectual property disputes, family law, breach of contract, insurance claims, personal injury claims, amongst many others.
CBVs also facilitate informed decision making by management teams, Boards of Directors, and Government agencies. Whether it is in the context of mergers and acquisitions, succession planning, strategic planning, or reorganizations, CBVs are recognized as experts when it comes to business valuation.
Benefits of engaging a CBV:
There are many reasons that an individual or a corporation might require a business valuation, including tax and estate planning, matrimonial disputes, shareholder disputes, business sales and acquisitions, commercial damages quantification, and numerous other circumstances. Whatever the reason, the valuation of a business and the quantification of loss is a complex and subjective undertaking that requires specialized knowledge and expertise.
The CICBV’s Standards of Practice and Code of Ethics help to ensure the quality and consistency of the work performed by CBVs across Canada.
The benefits of engaging a CBV include having peace of mind that:
- a CBV has the appropriate training and experience;
- a CBV must follow the professional standards set by the CICBV; and
- a CBV must follow the Code of Ethics set by the CICBV.
Specialized training and education:
After successfully completing the CICBV’s comprehensive Program of Studies (which includes six courses dealing with business valuation, Canadian taxation, the law, and litigation support), successful completion of our Membership Qualification Exam, and obtaining practical experience requirements, CBVs are specially trained to deal with the intricacies that can arise when valuing any type of business, or when quantifying financial losses.
CBVs also have continuing professional development requirements. The CICBV supports this requirement by organizing various webinars, regional workshops and national conferences that address current and evolving industry topics.
The CBV profession is comprised of individuals with wide-ranging backgrounds including commerce, accounting, law and economics. Many of our members also hold accounting and financial designations such as CPA, CA, CMA, CGA and CFA.
Those engaging a CBV benefit by working with a professional who is a member of the CICBV, a recognized national body.
A recent study, Credibility Under Scrutiny: A Research Study of the weight placed on Expert Valuation and Damages Evidence in Canadian Court Judgments, found that the CBV designation was the “norm” in court cases dealing with business valuation matters and they are considered to have a “tremendous ability to make useful contributions to the court in terms of assessing financial loss or business value.”
The CICBV is also recognized internationally. We partnered with the ASA in 2009 to co-found the International Institute of Business Valuators (IIBV), a partnership to develop and deliver business valuation courses around the world. In 2008, we also joined the International Valuation Standards Council (IVSC), to take a leading role in developing and maintaining effective high-quality global standards for the performance of valuations.
In a court of law, where a CBV is engaged to provide an independent conclusion as to value or loss, the CBV must acknowledge this obligation in their reports. Particularly where CBVs are retained as expert witnesses before the courts, the role of the expert is to assist the court, and so the expert has an obligation to remain impartial. In some court cases, CBVs also offer their expertise as advocates, or advisors on the matter at hand.