2.4: Levels (or Scope) of Valuation Reports

There are three levels of valuation report recognised by the Canadian Institute of Chartered Business Valuators (CICBV Practice Standard 110): Comprehensive Valuation Reports, Estimate Valuation Reports, and Calculation Valuation Reports.

Reports are distinguished by the scope of work, the amount of disclosure provided, and the level of confidence provided by the conclusion.

The three types of valuation reports may be distinguished as follows:

 

Comprehensive Valuation Report

  • Level of review & analysis: Comprehensive review and analysis of the business, its industry and all other relevant factors
  • Extent of Corroboration: Corroboration of significant relevant information and considerations

 

Estimate Valuation Report

  • Level of review & analysis: Limited
  • Extent of Corroboration: Limited

Calculation Valuation Report

  • Level of review & analysis: Minimal
  • Extent of Corroboration: Little to none

 

Valuation reports are distinguished by levels of scope, disclosure, & confidence.

 

The type of report selected is closely related to the purpose of the report. If significant reliance is to be placed on the valuator’s report for, e.g. dispute resolution, it should be expected that a higher level of report will be suitable than if the report is just a supporting document for, e.g. negotiations.

For a detailed study on the type of report needed, refer to CIBV’s Practice Bulletin No 3: Guidance on the types of valuation reports.

Contact MVI to discuss the most suitable level of report you need.