1.01 A Better Understanding of Business Valuators’ Reports
Purpose of this book.
This “book” is really just a series of blogposts on MVI’s website. You will not find it on Amazon or in a book store. The purpose of the posts / book is to assist users of business valuators’ reports better understand the terms, principles, and recommendations set out in the report.
I believe that it is insufficient for users to simply turn to the conclusion page of a valuator’s report. All users should, ideally, have the ability to work through all aspects of a report. In this way they will have at least a basic understanding how the conclusion has been developed.
This is not designed as a textbook on business valuations. However, there is sufficient detail to provide a lay user with a reasonable understanding of most aspects of a business valuator’s report.
Finding your way around the book
I have designed the book to be non-sequential. Each page deals with a single topic. There are cross references to other pages dealing with related topics. Refer to the Table of contents for easy access to all the articles. Each page should take less than five minutes to read, perhaps a bit longer to digest. I suggest that the section on Methodologies would be a good starting point.
The book is targeted mainly at (a) business owners and (b) professionals with an interest in the valuation of a business. These users have primary skills that lie in areas such as general business, the law, accounting, financing or business broking but may need to use a business valuation report.
Canadian terminology should not limit readership
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.
Paul Maarschalk BA, CPA, CA, CBV January 2018 with periodic updates.