CBV Level 1 - Valuation Report Questions and Answers Graded A+

CBV Level 1 - Valuation Report

- Current date
- Name/address of client
- Name/address of CBV
- Type of report and level of assurance provided
- Business interest being valued
- Valuation date
- Purpose of report
- The definition of FMV used
- Value does not equal price (notional vs. open market)
- Prepared in accordance with CICBV Standards
- Report and analyses must be considered as a whole
- That this is a DRAFT - answer What should the Introduction section of a Valuation
Report include?

- Name
- Date founded
- Corporate structure
- Shareholders
- Products sold
- Main customers (economic dependence?)
- Main suppliers (" ")
- Labour force

Provide sufficient detail here that the reader will understand the following section
(Valuation Approach) - answerWhat should the Company Overview section of a
Valuation Report include?

- Assessment of whether business is a going concern
- If yes, income based approach appropriate
- Assessment of whether historical = future earnings
- If yes, capitalized approach appropriate
- If no, discounted cash flow approach appropriate
- If capitalized, assessment of whether depreciation =
SCR
- If yes, Capitalized Earnings
- If no, Capitalized Cash Flow

Whether report is to be prepared on a debt-free (unlevered) or debt-included (levered)
basis - this is typically provided by the question - answerWhat should the Valuation
Approach section of a Valuation Report include?