Business valuations
KitsWest Capital advises owner-managed businesses on independent valuations led by Chartered Business Valuators, supporting transactions, succession, shareholder matters, tax planning, financial reporting, and litigation.
We work with founders, shareholders, lenders, accountants, and legal advisors who need a credible, defensible view of value to support a decision. Each engagement is scoped to its purpose, intended users, and the level of scrutiny the conclusion must withstand. The objective is not to produce a report. It is to deliver an analysis that holds up to review and gives the client a basis to act with confidence.
What is a business valuation
A business valuation is an independent, professionally prepared assessment of the value of a business, a business interest, or a specific asset. Unlike a broker estimate or a rule-of-thumb multiple, a formal valuation is grounded in defined methodology, supported by documented analysis, and prepared in accordance with professional standards.
What distinguishes valuation work from other advisory analysis is the requirement for independence and defensibility. A valuation conclusion may be relied upon by buyers, sellers, lenders, courts, tax authorities, family members, auditors, and shareholders, each with a different stake in the outcome. The work has to withstand scrutiny from all of them.
For privately held businesses, valuation is rarely a single-number exercise. The analysis considers earnings quality, growth prospects, capital structure, owner dependence, customer concentration, industry conditions, and the methodology choices that have to be defended on the facts of the engagement and its intended use.
A properly scoped valuation does more than satisfy a technical requirement. It provides a basis for decisions that owners, advisors, and counterparties can act on with confidence.
Our valuation services
Our valuation work spans transactions, planning, compliance, and dispute matters for small and mid-market privately held businesses in BC, Alberta, and across Canada.
01 / Transaction valuations
Valuations supporting active or contemplated transactions, including sale preparation, acquisition analysis, unsolicited offer review, recapitalizations, management buyouts, and capital raises. The objective is a defensible view of value before terms are negotiated and before commitments are made.
02 / Succession and ownership transition valuations
Valuations supporting family succession, generational transfers, management buyouts, and ownership transitions. These engagements typically require independence between transferring and receiving parties and often interact with estate freezes, holding-company structures, and broader tax planning.
03 / Shareholder, partner, and dispute valuations
Independent valuations for shareholder exits, partner buyouts, oppression remedies, fair value determinations, and triggers under shareholder agreements. The conclusion must withstand challenge from the parties involved and, where relevant, from a court.
04 / Tax and reorganization valuations
CBV-led valuations supporting estate freezes, section 85 and section 86 reorganizations, butterfly transactions, holding-company restructurings, and other CRA-facing matters. The level of documentation and methodology is matched to what the Canada Revenue Agency expects to see on review.
05 / Litigation and economic loss valuations
Valuations and economic loss quantification prepared for litigation, family law, oppression actions, breach of contract claims, and other matters where the work may be submitted as expert evidence. Independence, methodology, and defensibility are paramount.
06 / Financial reporting and compliance valuations
Purchase price allocations, goodwill impairment testing, share-based payment valuations, and other matters where audited financial statements depend on a defensible valuation conclusion. The work is prepared to a standard external auditors will accept.
How a business is valued
Business valuation is grounded in three primary approaches, each suited to different circumstances and used individually or in combination. The approach selected depends on the nature of the business, the quality and reliability of its financial data, the purpose of the engagement, and the level of assurance required.
In practice, most mid-market business valuations in BC and Alberta rely primarily on the income approach, cross-checked against market data where available. The asset approach serves as a floor valuation and is often applied in combination with one of the other approaches.
Valuation methods within each approach
Each approach contains specific methods that a CBV selects based on the facts of the engagement. The choice of method, and the rationale for that choice, is documented in every valuation report.
The method selected in any engagement is driven by the facts, not by preference. A CBV documents why the chosen method is appropriate for the specific business, purpose, and intended users of the report.
Chartered Business Valuator (CBV): Canada’s business valuation credential
In Canada, the recognized credential for business valuation work is the Chartered Business Valuator (CBV) designation, granted by the Canadian Institute of Chartered Business Valuators (CICBV). The CICBV is the professional body that establishes valuation standards, the practice handbook, and the ethics framework for business valuation in Canada.
CBV-led valuations are the standard expected by the Canada Revenue Agency, Canadian courts, Canadian lenders, accounting firms supporting financial reporting matters, and counterparties in private company transactions. When the analysis has to be defended before a third party, the question is not just whether the analyst is qualified to assess a business. The question is whether the analyst is qualified to assess a Canadian business in a Canadian context, against Canadian standards.
Chartered Business Valuator (CBV) versus Certified Valuation Analyst (CVA)
The Certified Valuation Analyst (CVA) is a US credential issued by the National Association of Certified Valuators and Analysts (NACVA). It is well established in the United States, but it is not the Canadian equivalent of the CBV. A CVA designation does not signal training in Canadian valuation standards, Canadian tax matters, CRA expectations, or the CICBV practice handbook.
For a Canadian private company facing a transaction, a tax reorganization, a shareholder buyout, a financial reporting issue, or a litigation matter, the credential that matters is the CBV. Valuations led by a CBV are prepared in accordance with CICBV standards and are the recognized form for use in Canadian tax filings, financial reporting engagements, court submissions, and dispute resolution.
When a Canadian business needs a CBV-led valuation
A CBV-led valuation is appropriate whenever the conclusion will be reviewed, challenged, or relied on by a third party. Common situations include estate freezes and tax reorganizations under section 85 or section 86, family law and matrimonial matters where business value must be defended in proceedings, shareholder disputes and oppression remedies, fair value calculations under shareholder agreements, financial reporting requirements involving purchase price allocation or impairment testing, and CRA reviews of transactions involving private company shares.
For internal planning matters with no external reliance, a less formal analysis may be sufficient. When the conclusion has to stand up to scrutiny, CBV-led work is the standard.
| Report level | Level of assurance | Typical use cases | Fee range | Timeline |
|---|---|---|---|---|
| Calculation | Minimum level of assurance. Limited review with reliance on management-supplied information. | Internal planning, preliminary value indications, early-stage tax planning. | $4k - $8k | 2 to 4 weeks |
| Estimate | Moderate level of assurance. Independent verification of key inputs with multiple methods applied and peer benchmarking. | Most tax filings, shareholder transactions, succession planning. | $8k - $14k | 2 to 6 weeks |
| Comprehensive | High level of assurance. Thorough corroboration, management interviews, and site visits where relevant. | Contested litigation, fairness opinions, situations requiring the highest scrutiny. | $14k+ | 6 to 20 weeks |
Selected transactions
Selected transactions our principals have advised on across their corporate finance careers. Comprehensive listing can be found on our transactions page.
Mike Busch, CPA, CBV · Founder & Managing Partner
Mike Busch is the Founder and Managing Partner of KitsWest Capital. He is a Chartered Professional Accountant (CPABC) and a Chartered Business Valuator (CICBV), with more than two decades of advisory experience across business valuations, mergers and acquisitions, debt and capital advisory, and complex shareholder matters in Canada.
Mike’s valuation work spans transaction-related mandates, tax and reorganization valuations, shareholder and partner disputes, family law and litigation matters, succession and estate planning, and financial reporting engagements. He has prepared and defended valuations across manufacturing, construction, distribution and trade, real estate, transportation, professional services, food and beverage, and technology.
Before founding KitsWest Capital, Mike held senior corporate finance and valuation roles at a major firm, advising founders, shareholders, and management teams of founder-led companies on transactions and ownership matters. He is a member of CPABC, CICBV, the Greater Vancouver Board of Trade, the Richmond Chamber of Commerce, and the Abbotsford Chamber of Commerce.
Why hire an independent business valuator
Valuations matter when the conclusion will be reviewed by someone other than the person who prepared it. Independence, methodology, defensibility, and commercial judgment determine whether the analysis holds up to the scrutiny it will face.
Independence
We are not affiliated with the buyer, the seller, the lender, the counterparty, or any party with an outcome interest in the conclusion. The valuation reflects our analysis of value, not the answer anyone wanted in advance.
Methodology
Our valuation work is led by Chartered Business Valuators and prepared in accordance with CICBV standards. Methodology choices, assumptions, and supporting analysis are documented to a level that supports challenge from CRA, courts, lenders, auditors, and counterparties.
Defensibility
A valuation is only as useful as it is durable. Our work is prepared to stand up to review by sophisticated counterparties, professional advisors, and external authorities. Where the work has been used in disputes, tax reviews, or court matters, it has been prepared to that standard from the start.
Commercial judgment
Valuation is not a spreadsheet exercise. Two decades of transaction, financing, and ownership-matter experience inform how we assess earnings quality, risk, growth, and the realistic range of value a buyer, court, lender, or counterparty will accept.
Our process
Each engagement begins with a no-cost discovery conversation to confirm the purpose of the valuation and the level of reliance required. From there, we follow a disciplined five-phase process.
01 / Assess the situation
We define the engagement purpose, intended users, valuation date, level of reliance required, and any constraints affecting scope or methodology. The output is a clear scope and a fixed-fee proposal.
02 / Define the scope and report level
We confirm whether the engagement requires a Calculation, Estimate, or Comprehensive Report, identify the methodology framework, and define the information requirements. Scope is matched to purpose, not the other way around.
03 / Conduct the analysis
We review historical financial performance, forecasts, industry conditions, capital structure, and the value drivers and risks specific to the business. We apply income, market, and asset-based methodologies as appropriate and test conclusions across multiple approaches.
04 / Form the valuation conclusion
We synthesize the analysis into a defensible conclusion supported by documented assumptions, methodology choices, and sensitivity testing. We discuss preliminary findings with the client before finalizing the report.
05 / Deliver the report
We deliver the report at the level of detail required by the intended use, whether for internal planning, transaction support, tax filing, financial reporting, or litigation submission. We remain available to support the conclusion through review, negotiation, or proceedings.
Integrated with mergers and acquisitions and debt and capital advisory
Valuation work rarely sits in isolation. For founders considering a sale, recapitalization, or refinancing, the valuation is often the starting point of a broader process that touches mergers and acquisitions, debt and capital advisory, and strategic decisions about timing, structure, and counterparties.
KitsWest Capital integrates valuation engagements with our business brokerage and debt and capital advisory practices so that decisions about value, structure, and execution are assessed in one coordinated process. For some clients, the valuation is the entire engagement. For others, it is the first step in a transaction that follows.
Frequently asked questions
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A business valuation is an independent, professionally prepared assessment of the value of a business or business interest, prepared in accordance with professional standards and grounded in defined methodology. It is used to support transactions, succession planning, shareholder matters, financing, tax filings, financial reporting, litigation, and other situations where a defensible view of value is required.
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A Chartered Business Valuator (CBV) is a designation granted by the Canadian Institute of Chartered Business Valuators (CICBV). It is the recognized professional credential for business valuation work in Canada. CBV-led valuations are prepared to CICBV standards and are the form expected by the Canada Revenue Agency, Canadian courts, lenders, auditors, and counterparties in private company transactions.
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The CBV is the Canadian credential, granted by the CICBV, and is the recognized standard for business valuation work in Canada. The Certified Valuation Analyst (CVA) is a US credential issued by NACVA, the National Association of Certified Valuators and Analysts. A CVA designation does not signal training in Canadian valuation standards, Canadian tax matters, or CICBV practice. For Canadian privately held businesses, the credential that matters in transactions, tax filings, financial reporting, and court matters is the CBV.
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Yes. Our valuations are led by Chartered Business Valuators and prepared in accordance with CICBV standards. This is the form the Canada Revenue Agency expects to see for share valuations, estate freezes, section 85 and section 86 reorganizations, and other transactions involving private company shares that CRA may review. The level of documentation and methodology is matched to the scrutiny the conclusion will face.
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Valuations are typically needed when a business owner is preparing for a sale, evaluating an acquisition, planning succession, addressing a shareholder or partner matter, considering financing alternatives, completing a tax reorganization, or working through a litigation or family law matter. In most cases, valuation is most useful before a major decision is made rather than after a process is already underway.
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Our valuation engagements are led by Chartered Business Valuators with experience across transactions, tax matters, shareholder disputes, litigation, succession planning, and financial reporting engagements. The CBV designation is the recognized Canadian standard, and it ensures the work is approached with the appropriate methodology, judgment, and professional rigor.
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The appropriate approach depends on the business, the purpose of the engagement, and the available information. Valuation methodology may consider income-based approaches such as discounted cash flow or capitalized earnings, market-based approaches comparing the business to similar transactions or comparable companies, and asset-based approaches where appropriate. The methodology choice is driven by the engagement context, the nature of the business, and what the intended users of the work require.
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Not in every case, but most owners benefit from understanding value before launching a sale process. A valuation helps frame expectations, identify the key value drivers and risks a buyer will scrutinize, and provide a more informed starting point before responding to an offer or selecting an advisor.
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Yes. Succession planning typically begins with understanding what the business is worth today. A valuation can support family transitions, management buyouts, share transfers, estate freezes, and the related tax planning that surrounds an ownership transition. Where the transfer involves CRA implications or related-party considerations, CBV-led work is typically required.
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Yes. Independent valuations are routinely used to support shareholder exits, partner buyouts, oppression remedies, fair value determinations, and triggers under shareholder agreements. Where the parties have differing views on value, an independent CBV-led valuation provides a defensible basis for resolution.
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These are three report levels defined under CICBV practice in Canada. A Calculation Report is the most limited in scope and is typically used for internal planning or preliminary discussions. An Estimate Report involves a broader level of analysis and is used where external reliance exists but scrutiny is moderate. A Comprehensive Report is the highest level of work, used for transactions, disputes, litigation, and other high-stakes matters where the analysis must withstand rigorous review.
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Timing depends on the complexity of the business, the report level required, the purpose of the engagement, and how quickly the required information is available. A Calculation Report on a straightforward business may be completed in a few weeks. A Comprehensive Report on a more complex matter, particularly one involving litigation or a contentious transaction, may take several months.
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The information required varies by engagement, but typically includes three to five years of historical financial statements, current interim results, corporate and ownership records, details on operations and key contracts, customer and supplier concentration data, debt and capital structure information, and any available forecasts or budgets. Additional information may be required depending on the methodology applied and the level of scrutiny the conclusion will face.
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Business valuations are priced on a fixed-fee basis, scoped at the outset, and never contingent on the conclusion of value. Fee ranges by report level are: Calculation Reports $4,000 to $8,000, Estimate Reports $8,000 to $14,000, and Comprehensive Reports $14,000 and up depending on scope and complexity. Most engagements are at the Estimate level. The fee structure is half on engagement and half on release of the draft report. Contingent and value-based fees are prohibited under Section 110 of the CBV Institute Practice Standards, which preserves the independence required for the conclusion to be defensible.
Our insights
Discuss a business valuation matter
If you are evaluating a sale, acquisition, succession plan, shareholder matter, financing initiative, recapitalization, reorganization, or valuation mandate, we welcome a confidential discussion.
KitsWest Capital
595 Howe Street, Suite 306
Vancouver, BC V6C 2T5
Advising small businesses, owner-managed companies, and privately held businesses across Canada and the United States.
Our associations
Our principals are members of the Chartered Professional Accountants of British Columbia (CPABC) and the Canadian Institute of Chartered Business Valuators (CICBV). KitsWest Capital is a member of the Richmond Chamber of Commerce, the Abbotsford Chamber of Commerce, and the Greater Vancouver Board of Trade.
