We are capable of issuing valuation reports under the following standards, as required by our clients and the purpose of the work.

For all Chartered Business Valuations, we issue our reports under the Canadian Institute of Chartered Business Valuators (CICBV)​ and International Valuation Standards (IVS).

For our Broker Opinion of Value reports we issue our reports under the practice standards of the Real Estate and Business Brokers Act, 2002 Ontario Regulation 580/05

A Chartered Business Valuator (CBV) designation is the premier credential for professional business valuators in Canada.  CBVs are financial professionals who hold this designation granted by The Canadian Institute of Chartered Business Valuators (CICBV). They are nationally recognized as CBVs quantify the worth of all, or part, of a business or its securities. They have has the ability to determine the value of tangible and intangible assets, including brand and intellectual property, and then explain their rationale in an easy to understand manner.

The opinions of CBVs are respected and recognized by the courts of Canada in shareholder, partnership, securities, intellectual property and marital disputes, damage quantification, insurance losses, personal injury claims, patent infringement and breach of contract cases.

CBVs provide assistance in a number of areas including:

• Notional valuations where a negotiated arm’s length transaction will not take place, in circumstances such as transactions between shareholders or related parties, transactions for taxation and corporate reorganization, and for transfer pricing and matrimonial purposes.
• Financial litigation support activities in circumstances such as breach of contracts, insurance losses, patent infringements and personal injuries.
• Corporate finance and transaction-based activities in circumstances such as financings, mergers and acquisitions, leveraged buy-outs, management buy-outs, buy/sell agreements, initial public offerings and the preparation of analyst reports and studies.
• Regulatory areas where independent valuation conclusions are required by securities commissions and other regulatory bodies, in circumstances such as fairness opinions for public market transactions, going private transactions and non arms length dealings.
• Strategic Planning purposes which include succession planning, preparing a business for sale and identification of value drivers, developing employee stock option plans.

The valuation of a business is a complex undertaking that requires specialized knowledge and abilities. The essential point to keep in mind is that value is determined by a complicated set of factors. For this reason, it is important to work with a valuation professional such as a Chartered Business Valuator (CBV) who is a valuation expert providing business valuation expertise in the areas of compliance, disputes and corporate finance, and skilled in selecting and applying the appropriate valuation methodology.

Very few individuals’ actually performing business valuations in the Middle East have earned a professional designation from a recognized professional organization certifying business appraisers.  Clients have historically, and still do, consider accountants as the competent requisite for valuing businesses.

When choosing a valuator, consider the credentials of the consultants upon which you will rely, including the practice standards to which they are bound.

1. Profit: The primary goal of every business is to generate positive cash flow. Ultimately, the profit that a company generates will be the key value driver that determines its valuation. Beyond this, several other factors affect a company’s evaluation. Businesses are considered an ongoing concern, which is why, when valuing a company, it is essential to assess a company’s potential to generate future profits.
2. Management & Employee Base: Businesses with high growth potential and positive industry outlook will trade at higher multiples as buyers are more willing to offer a premium for future profits. Additionally, a company with a lean cost structure or low owner dependence are also considered desirable.
3. Dependence on Clients or Suppliers: Another factor that determines a company’s value is its economic moat. A company with a low threat from competition and high entry barriers is perceived to have a lower risk.
4. The Longevity of the Business Model: Other factors that might impact valuation include pending litigation, management experience, revenue concentration, client base and supply chain. Experts will account for all these factors in their model assumptions to accurately value a company.

Through their comprehensive educational program and practical experience requirements, CBVs are specially trained to deal with the intricacies that can arise when valuing any type of business.

CBVs also have access to continuing education through regional workshops and national conferences that address current and evolving industry topics.  Many accountants also have their CBV designation.  A general distinction between the two professions is that CAs look at the past to create financial statements. CBVs look to the future to determine what is most likely to happen and place a value on that.

Those engaging a CBV benefit by working with a professional who is a member of a recognized national body, the CICBV.  The CICBV has firm Standards of Practice that help to ensure the quality and consistency of the work performed by CBVs across Canada, as well as a Code of Ethics by which all CBVs must abide.  The standards of the CICBV fall within those standards of the International Valuation Standards Committee (IVSC).

CBVs are often engaged to act as an independent expert or assume an advisory role. CBVs also work in conjunction with other professionals such as lawyers, accountants and tax specialists.

• How long has the company been in business?
• What has their growth or decline looked like over their history?
• What does the competitive landscape look like (lots of small competitors, a few large competitors, niche business, etc.)?
• What assets does the company currently own (inventory, property, personnel, vehicles)?
• How much debt does the company have, and who owns the debt?

Business Valuation is as much art as science. Yet business valuation is also a highly technical field. The ability to judge which valuation method is best suited to a company’s needs and apply it to get an accurate picture of value requires experience and skill. Relying on a value determined by someone who doesn’t have this expertise can lead to unpleasant surprises. Get to know the basics of what goes into a good valuation report so you can make well informed decisions about your valuation needs. Independence is another important criterion.