CBV Prepared Business Valuations
Some say that placing a value on a business can be more of an art than a science, and here at EnerVal we think this is true.
All businesses have unique characteristics which may not be reconciled in the same way that, for example, real property or physical assests can be. Think of a company's goodwill, staffing considerations, customer relationships, market positioning, and financial health. These factors require judgement calls with respect to expected future earnings and required rates of return which can not be developed in isolation.
By reviewing the company's operations, industry factors, and general economic conditions the valuator can derive a unique and specific value range appropriate for the subject business. Whatever the reason, the evaluation of a business is a complex undertaking that requires specialized knowledge and abilities.
We have provided business appraisal reports adhering to the Chartered Business Valuator's standards for the following reasons:
In many of the above cases the company is not exposed to the marketplace for sale but an independent value is still required to complete the transaction. As there is no organized market for private companies, a third party evaluation is required to develop a fair transaction price; this value is known as a "notional value". A CBV prepared valuation report brings clarity, independence, and balanced judgement to every situation.