Chartered business valuator: The CICBV

It is not enough to proclaim yourself a business valuator to be one. In fact, there’s an expertise and a professional designation of Chartered Business Valuator (CBV). This title is a result of several hundred hours of training and years of practice. The Chartered Business Valuator designation is given by The Canadian Institute of Chartered Business Valuators (CICBV). What is the CICBV? What are the standards of the profession? Is there a code of ethics to follow when you’re a CBV? It is important, when you choose to evaluate your business, to hire the right professional. Here is why you should hire a professional with a CBV designation to appraise your business.

What is the CICBV?

We set the standard. The Canadian Institute of Chartered Business Valuators (CICBV) is nationally and internationally recognized as the pre-eminent business valuation organization in Canada.[1]

It was in 1971 that CICBV is founded by 28 professionals in valuation. It is Mr. George Ovens who then leaded the group. At that time, the taxation of capital gains was just introduced in Canada. The general need for business valuation was then set. Since then, the CBV profession has grown and is still growing. Indeed, today, business valuation request extend to more than one area.

Since its establishment, the CICBV has set the standards of practice, training requirements, and ethical guidelines that support and promote the integrity of the profession.

[1] https://cicbv.ca/cicbv-profile/

The Standard 110 and other standards of practice

CICBV establishes and regulates the standards of practice of the profession of business valuation expert.

There are 18 standards and three appendix which are grouped into six categories.

1. The production of the valuation reports: Standard 110 (appendix A and B), 120 and 130.
2. The production of advisory reports: Standards 210, 220 and 230.
3. The production of an expert report: Standards 310, 320 and 330.
4. Production of a limited critique report: Standards 410 (Appendix A), 420 and 430
5. Fairness opinions: Standards 510, 520 and 530.
6. The production of investment entity review reports: Standards 610, 620 and 630.

The most well-known without doubt the Standard 110 which sets out the standards and recommendations on information to be provided in the valuation report. Appendix A of the Standard 110 provides guidance on the standards for valuation reports prepared for the purposes of securities legislation, regulation or policies. Appendix B of the Standard 110 informs on the valuation standards of financial reporting purposes.

The code of ethics of Chartered Business Valuators

Any professional order has its code of ethics. This allows protection of the profession as well as the protection of the public.

The code of ethics of the CICBV has two main objectives:

1. Ensure and protect the quality of the professional services offered to the public by the members and students;
2. Ensure the disciplined and courteous conduct of individuals who provide professional valuation services, litigation support services and corporate finance services.

All CBV’s must respect the code of ethics put forward by the CICBV.

In case of disciplinary misconduct on the part of a chartered business valuator, the CICBV relies on the Code to evaluate the allegations and enforce the appropriate sanctions.

In the light of this information, it is clear that if you want to get your business appraised, you should turn to an expert with his CBV designation. Over the past years, I have appraised over 1,000 businesses. I’m a Chartered Business Valuator certified by the CICBV, a Fellow Chartered Professional Accountant and a Certified Mediator. With me, not only you will have the accurate informations as of the value of your business, but you will know you are dealing with an experienced professional.

Contact me today! Whether you want to learn more about the profession or you want to get your business appraised, I will be happy to assist you.