Three Levels of CBV Reports

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The CBV Institute defines 3 distinct levels of valuation reports: Calculation, Estimate, and Comprehensive. These reporting tiers exist along a continuum, scaled by the scope of work performed, the depth of analysis, the extent of independent data verification, and the ultimate level of assurance provided. 

Understanding these differences ensures that business owners, legal professionals, and external auditors select a report that is both cost-effective and defensible. 

A Calculation Valuation Report offers a conclusion regarding the value of shares, assets, or a business interest based on minimal review, minimal economic analysis, and little to no independent corroboration of the relevant information. This is comparable to a compilation-level engagement. 

The Context: Choosing a Calculation report depends on the user's explicit risk tolerance and the report's ultimate purpose. 

Typical Use Case: It is highly efficient for lower-stakes environments, such as internal tax reorganizations. Because tax planning frequently relies on legal agreements with price adjustment clauses, the risk associated with a low-assurance valuation is effectively mitigated. 

An Estimate Valuation Report steps up the baseline analytical rigour. It delivers a value conclusion based on a limited review, analysis, and corroboration of relevant information, and it is issued in a less detailed format than a comprehensive review. This is comparable to a review-level engagement. 

The Context: It serves as a balanced mid-tier option when a business needs a defensible value but lacks the budget, time, or exposure to external litigation that would mandate the highest reporting tier. 

Typical Use Case: Often deployed for corporate planning, mid-market transactions, standard shareholder transitions where a moderate level of structural confidence is required, financial reporting, and dispute resolution. 

A Comprehensive Valuation Report provides a conclusion based on a full, exhaustive review and analysis of the business, its operational history, its specific industry, and relevant macroeconomic variables. Every key variable is adequately corroborated and set out in a detailed report. 

The Context: This tier is explicitly designed to withstand intense scrutiny and adversarial challenge. This is comparable to an audit-level engagement. 

Typical Use Case: It is often used for high-stakes litigation, contentious matrimonial disputes, going-public events, large M&A transactions, and complex financial instruments that rely on highly sensitive inputs. 

Selecting the appropriate level of a CBV valuation report requires a strategic balance between risk tolerance, the intended purpose, and the ultimate audience. 

Driven by professional judgment and best practice standards, this decision hinges on the complexity of the underlying asset base, the degree of estimation uncertainty, the dollar amount involved, and the level of external or regulatory scrutiny the final conclusion will face. 

Speak with us to determine which level of reporting is best suited to your needs.