What is a Chartered Business Valuator (CBV)?
Chartered Business Valuator (CBV) is the designation assigned to Canadian professionals by the Canadian Institute of Chartered Business Valuators (CICBV). The CBV designation denotes an individual with experience and expertise in the financial valuation of a business. Learn more at cicbv.ca.
Image: CFI’s Business Valuation Modeling Course.
Diving Deeper into Chartered Business Valuators
Chartered Business Valuators are all issued their license and designation and overseen by the Canadian Institute of Chartered Business Valuators (CICBV). The responsibilities of CBVs are extensive. The highly-educated financial professionals use a number of modalities and methods to determine the true value of a company.
In large part, Chartered Business Valuators determine a company’s value by quantifying all of the company’s assets, including securities and intangible assets. Each CBV may use a different approach or methods when quantifying a company’s value; however, the exact steps they take and their overall approach must be documented at length and the reasons behind each method of valuation explained.
Documentation is especially critical in cases where the legal system gets involved. Chartered Business Valuators are respected members of the community, and their expert testimony and processes are widely recognized and valued in litigation situations. CBV reports are particularly useful when legal disputes call up the need for quantified data regarding damage, loss, and even potentially fraudulent actions perpetrated by a company or another party fighting a company.
Training for Chartered Business Valuators
The first step in the process of becoming a CBV is successful completion of the Program of Studies maintained by the CICBV, which includes six specialized courses that address:
- Canadian taxation and law
- Assisting with litigation and legal matters
- Appropriate strategies for successful business valuation
On top of this, every Chartered Business Valuator must successfully obtain countless hours of practical experience in the field, pass the CICBV’s qualification exam, and then complete training courses that deal with more specific and specialized issues that can and do arise during the process of carrying out CBV responsibilities. In addition, all CBVs are responsible for obtaining regular, ongoing training throughout their career so that they remain up-to-date on all practices, rules, laws, and responsibilities that go with their title.
For Canadian businesses, Chartered Business Valuators offer numerous benefits. Understanding a company’s value is important not only for generating profit and maintaining strong trading relationships, but it also comes into play when dealing with legal issues. A CBV’s training and the dedication and persistence needed to carry it out make them some of the most well-rounded, respected, and trustworthy financial professionals in the country.
CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ certification program, designed to help anyone become a world-class financial analyst. To keep advancing your career, the additional resources below will be useful: