Valuations

A Broker’s Opinion of Value (BOV) is a professional estimate of a business’s value, based on a broker’s experience, market knowledge, and analysis. It’s commonly used by business owners to determine a reasonable asking price, prepare for retirement or succession planning, and support general business or financial decision-making.

The BOV considers factors such as comparable sales, current market conditions, financial performance, and industry-specific variables like location and size. While it’s not as detailed as a formal valuation, it offers meaningful insights—including how different deal structures might affect the sale price and tax outcomes—making it a useful starting point for many business owners.

A formal business valuation is typically conducted by a certified business appraiser. The most widely recognized credentials in this field—accepted by banks and other third parties—are the CVA (Certified Valuation Analyst) and CBA (Certified Business Appraiser).

Why opt for a formal appraisal by a CVA or CBA instead of a Broker’s Opinion of Value (BOV)? One of the most common reasons is to meet the requirements of the Canada Small Business Financing Program (CSBFP).

For sellers, a certified valuation can increase buyer interest by helping pre-qualify the business for CSBFP financing. This allows more buyers to consider the business, thanks to reduced down-payment requirements. Note that while the business may be pre-qualified, the buyer must still meet CSBFP criteria—such as good credit, relevant management experience, a completed CSBFP personal financial statement, and the ability to personally guarantee the loan.

Contact us to learn more about the advantages of obtaining a certified business valuation.

As a business brokerage firm, the majority of our valuation services are performed in the context of business sales and acquisitions. However, we also offer asset-specific valuation services. For example, banks and lenders often require asset appraisals when approving loans backed by specific types of collateral. One common scenario involves machinery and equipment appraisals.

The Canada Small Business Financing Program (CSBFP), for instance, frequently mandates equipment appraisals as part of its loan process. These appraisals must follow specific criteria: they must be conducted by a certified, independent appraiser who has physically inspected the equipment, and are generally required when the equipment is being refinanced, purchased from a private party, tied to an CSBFP loan or when there’s a close relationship between buyer and seller, or the business is equipment-dependent. The appraisal must also be completed within certain time of the loan application.

For any questions about valuation services contact us to speak with one of our valuation professional agents.

We are a trusted name in business valuation and appraisal services, offering expert insight backed by years of experience and a strong understanding of the local market. Our in-depth knowledge of current economic conditions and industry trends allows us to deliver accurate, informed valuations tailored to your specific business.

Confidentiality is a top priority. We treat all financial information and appraisal details with complete discretion, ensuring your privacy is protected throughout the entire process.

When you work with us, you’re partnering with professionals committed to providing reliable, high-quality valuation services that support your business goals.

Get in touch with us to discuss your business appraisal needs and how we can help you move forward with confidence.