CBV Institute

The CBV Institute (French: L’Institut des CBV), formerly known as the Canadian Institute of Chartered Business Valuators (CICBV), is a Canadian business valuation organization. The CBV Institute is a not-for-profit valuation professional organization that establishes the practice standards, educational requirements, and ethical guidelines for its members.

CBV Institute / L’Institut des CBV
Formation1971
Typenot-for-profit organization
HeadquartersToronto, Canada
Coordinates43°38′40.51″N 79°23′28.65″W[1]
Region
Canada
Membership
Increase 2,433 (2022)
Official language
English, French
Christine Sawchuk[2]
Patrick Coady
Revenue
Increase CAD $4.53 million (2022)
ExpensesIncrease CAD $4.61 million (2022)
Staff
13 (2022)
Students
Increase 1,230 (2022)
Websitehttps://cbvinstitute.com/
Formerly called
Canadian Institute of Chartered Business Valuators (CICBV)
[3]

The Chartered Business Valuator (CBV) (French: Experts en Evaluation d’Entreprises (EEE)) designation is a credential for business valuation professionals in Canada.[4] CBVs are governed by The Canadian Institute of Chartered Business Valuators.[5] CBVs quantify the value of a business, its securities, or its intangible assets.[6] CBVs use a variety of valuation methodologies to arrive at a conclusion, and explain their approach, methodology and conclusions in an easy to understand manner.[7] Various approaches used include asset-based approaches (liquidation, adjusted net book value), return-based approaches (capitalized earnings, capitalized cash flows, discounted cash flows), and market-based approaches (comparable company multiples). In the context of litigation, CBVs quantify the damages or losses arising in a legal dispute.[8]

History

The CBV Institute was founded in 1971 by 28 valuation professionals under the leadership of George Ovens.[9] At the time, the introduction of taxation of capital gains in Canada facilitated the general need for business valuation.

Education requirements

After completing the institute's comprehensive Program of Studies (which includes six courses dealing with business valuation, Canadian taxation, the law, and litigation support), completion of the Membership Qualification Exam (held annually), and obtaining practical experience requirements, candidates are then admitted to the membership.[10]

Students must take four courses as part of their education requirements:[11]

  • Level I – Introductory Business Valuation
  • Level II – Intermediate Business Valuation
  • Level III – Advanced Business Valuation
  • Level IV – Special Topics in Business Valuation

and pick two electives from the following:

  • Valuation for Financial Reporting
  • Litigation Support in Business Valuation
  • Corporate Finance
  • Private Investments

CBVs also have continuing professional development requirements. The Institute supports this requirement by organizing various webinars, regional workshops and national conferences that address current and evolving industry topics. CBVs are required to adhere to the Standard of Professional Practice as well as its Code of Conduct and Code of Ethics.

Course exemptions

The Institute grants various advanced standings to other organizations and university education partners:[12]

  • CAIA Association: CAIA members in good standing that have passed the Level I and Level II of the Chartered Alternative Investment Analyst (CAIA) program of studies are exempt from the requirement to complete two elective courses.
  • CFA Institute: Individuals who have passed the Level I, Level II and Level III exams of the Chartered Financial Analyst Program are exempt from the requirement to complete two elective courses.
  • CPA Canada:
    • Students who chose "Finance" in the Professional Education Program (PEP) as an elective are exempt from Level I.
    • Individuals who complete the two-part Valuation for Financial Reporting (VFR) certificate that is jointly offered by CPA Canada and CBV Institute will receive an exemption from CBV Institute’s Valuation for Financial Reporting elective course.
  • American Society of Appraisers: ASA-BV designation holders are exempt from Level I, Level II, and Level III.
  • University of Waterloo School of Accounting and Finance: Master of Accounting (MAcc) students who have passed the ACC606 Business Valuations course are exempt from Level I and Level II.

Partnerships

The CBV Institute forms various partnerships and relationship with organizations in Canada and the world to develop the business valuation profession and expand the CBV's international presence, including the following:[13]

See also

References
  1. "Contact Us". CICBV. CICBV. 20 October 2010. Retrieved 30 July 2018.
  2. Floether, Kevin (1 October 2020). "CBV Institute Appoints New President and CEO". 2020 Business Wire, Inc. Retrieved 2 October 2020.
  3. "2021 Year in Review". Year in Review 2021 Annual Report. CBV Institute. Retrieved 15 July 2022.
  4. "Chartered Business Valuator - CBV". Investopedia. Investopedia. Retrieved 30 July 2018.
  5. "An Introduction To The Chartered Business Valuator Designation". Investopedia. Investopedia. Retrieved 30 July 2018.
  6. "The MNP Valuation Guidance Series: Retaining a Chartered Business Valuator" (PDF). MNP LLP. MNP LLP. Retrieved 30 July 2018.
  7. "What is a CBV?". CICBV. CICBV. Retrieved 31 July 2018.
  8. "What is a Chartered Business Valuator?". CICBV. CICBV. Retrieved 30 July 2018.
  9. "The Canadian Institute of Chartered Business Valuators: Profile". CICBV. CICBV. Retrieved 30 July 2018.
  10. "What is a CBV?". CICBV. CICBV. Retrieved 30 July 2018.
  11. "Course Curriculum". CICBV. CICBV. Retrieved 30 July 2018.
  12. "Course Exemptions". CBV Institute. CBV Institute. Retrieved 11 June 2023.
  13. "International Leadership". CBV Institute. CBV Institute. 28 November 2019. Retrieved 2 July 2022.
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