1.0 Introduction to Understanding Business Valuators’ Reports

The purpose of this book is to assist users of business valuators’ reports better understand the terms, principles, and recommendations.

I have written the book because I believe that it is insufficient for users to simply turn to the conclusion page of a valuator’s report. I believe that all users should have the ability to work through all aspects of a report and have at least a basic understanding how the conclusion has been developed.

This is not designed as a textbook on business valuations, though there is sufficient detail to provide a lay user with a reasonable understanding of most aspects of a business valuator’s report.

The book has been written for (a) business owners and (b) professionals with an interest in the valuation of a business but whose primary skills lie in areas such as the law, accounting, financing or business broking.

I have written the book with the Canadian business environment in mind. “CBV” thus stands for Chartered Business Valuator, a designation that is specific to Canada, with its own unique professional body, the Canadian Institute of Chartered Business Valuators (CICBV). Substitute the national business valuation designation (e.g. “appraiser” in the United States) for my use of the term CBV and the context and meaning should carry through. In most cases, the terminology and methodologies described apply equally in other jurisdictions.

The book is designed to be non-sequential. Each page deals with a single topic but includes cross references to other pages dealing with related topics. Each page should take less than five minutes to read, perhaps a bit longer to digest.