Rick determines “fair market value” (FMV) and prepares valuation reports for a diverse range of purposes, including:
Rick also determines “fair value” (i.e. pursuant to International Financial Reporting Standards - IFRS) and prepares related reports to assist companies and their accountants with financial reporting compliance, including:
For simple share structures (i.e. such as one class of common shares) it is often sufficient to calculate the en bloc fair market value of shares and the corresponding rateable share value of each share interest. However, for more complex structures with different classes of common shares, preferred shares, etc, the allocation of en bloc value to the different classes of shares can be a very important part of the required analysis.
Rick works in either the capacity of an independent and objective expert or in an advisory/consulting role. When engaged to provide an independent conclusion of the value of a business or partial interest therein, Rick’s valuation reports are prepared and issued in accordance with the reporting and practice standards of the CBV Institute.
Under CBV standards there are three types of valuation reports:
Generally, a Calculation requires a lower level of review, analysis and report disclosure, while Estimate and Comprehensive require increasingly higher levels of review, analysis and report disclosure, respectively. The three reports are also distinguished by the level of assurance provided in the conclusion (with a Calculation providing the lowest level and a Comprehensive the highest).
In determining the appropriate level of report for a given engagement the primary factor is the purpose for which the valuation is being prepared. Other important considerations include the users of the report, the client and users need for assurance, the availability of information and the size and nature of the business. Fee and time constraints are also sometimes an issue and have to be carefully considered (i.e. a report with a low level of assurance may not be suitable for a given purpose).
Through client discussion, assessing the forgoing factors, experience and professional judgement, Rick will determine the type of valuation report that is suitable and credible for a given engagement. Call Rick to discuss your situation and he will advise you as to the level of valuation report suited to your needs.