LAND ACKNOWLEDGEMENT STATEMENT

On behalf of the CBV profession, we wish to recognize the unique and enduring relationship that exists between Indigenous Peoples and their traditional territories. We believe it is vital to honour these beginnings and the ongoing dedication and importance of Indigenous culture within our communities and within the land that we gather, live, learn and work on.

We respectfully acknowledge that the land the CBV Institute office now stands on is the traditional territory of many nations, including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples. It is home to many diverse First Nations, Inuit and Métis peoples. We also acknowledge that the City of Toronto is covered by Treaty 13 with the Mississaugas of the Credit.

May this acknowledgement serve as a reminder of our continuing efforts to recognize, honour and partner with the Indigenous Peoples whose homelands we benefit from today.

LEADERSHIP MESSAGE

JOINT Leadership Message

On behalf of CBV Institute’s Leadership, we are proud to present this review of shared  accomplishments in 2021. The following pages point to numerous successes achieved throughout the year.

Despite the pandemic, the CBV profession continues to grow and achieve impact. Our financial position remains strong, securing operations against unforeseen uncertainty, and providing resources for course enhancements, expanding continuing professional development activities, furthering brand development, and executing innovative changes to our operations and processes. CBVs and Students are more engaged than ever in our profession, and continued enhancements to our governance structure have inspired strong responses from CBVs interested to serve on the Board, Committees and Councils. We have continued to enhance our practice standards and processes, which has further elevated the professionalism of the CBV profession around the world.

In 2021, the Board approved a new set of Purpose, Mission, Vision, and Values and our 2022-2025 Strategic Plan, both of which were developed with essential input received from hundreds of stakeholders, including our valued Members and Students. In 2022 we have hit the ground running with a number of new initiatives: a new Director of Communications and Marketing, appointed in May 2022, is already raising our profile to the next level; further engagement with members with respect to professional practice and education; and plans to further strengthen our team to pursue sponsorships, thought leadership and engagement with external stakeholders. 

The strength of CBV Institute is in our people, and we could not accomplish all that we do without our passionate network of professionals. We wish to express our appreciation to Institute staff for their leadership and diligence, to all Board Directors for their dedicated service, and to the many CBVs and Students who contribute their time to help us on an array of Institute functions. We are excited to introduce new opportunities for CBVs and Students to further engage with the Institute.

Our efforts on behalf of CBVs, Students, the public, and our other stakeholders will only continue to expand in reach and scope as we work together to shape a brighter future.

WHO WE ARE

For half a century, CBV Institute has been leading governance and education for the CBV profession. We are committed to advancing professional excellence for business valuation globally. CBVs are established financial professionals who have invested in additional years of challenging CBV curricula to acquire the coveted CBV accreditation. With a rigorous course of study and high standards, we are an elite rarity with little more than 3,000 Members and Students in all the world.

The integrity of the CBV accreditation is protected by the demanding Membership Qualification Examination and upheld by our code of ethics, in the public interest.

Members
Students

From January-December 2021, the profession grew substantially as we welcomed 139 new CBVs into membership. Congratulations to the following individuals who attained their CBV designation.

GLOBAL MAP OF MEMBERSHIP

CBV Institute educates, accredits and governs Chartered Business Valuators across Canada and all over the world, representing the CBV profession internationally.

MEMBERSHIP GROWTH

Membership grew 5% in 2021

WHAT WE DO

VALUE MEASUREMENT

Valuation analysis provides a different perspective than accounting, audit, and tax. CBVs use financial information and dig deeper. A CBV is uniquely trained to uncover risks, find hidden value and enable wise, valuation-based business decisions. You will understand how each key business element impacts the value of your business.

VALUE CREATION

CBVs have unique insight to define value drivers that will bring the most profitable opportunities for business growth. They will unlock intangible assets not on the balance sheet of the business – assets that will drive value, such as customer relationships, community relations, management capabilities, and alliances.

VALUE PROTECTION

CBVs understand business risk. They also understand the actions required to safeguard business value. This not only protects the value already created, but allows for a long-term perspective on future goals to mitigate risk and maintain value. A CBV can protect businesses with a constructive plan driven from valuation insight.

CBVs BY SECTOR

WHY WE ARE

PURPOSE, MISSION & VISION

CBV Institute’s actions and behaviour are guided by our Purpose, Mission &
Vision, and informed by our Values.

PURPOSE
To lead, build, and evolve the valuation profession

MISSION
Elevate the power and stature of the CBV designation

VISION
Inspire an unwavering commitment to valuation excellence

VALUES

COLLABORATION
Work ethically with stakeholders to continuously improve the profession in the public interest

BOLDNESS
Be courageously inquisitive to advance the future of the profession

VITALITY
Operate with agility and embrace change with integrity

INCLUSIVENESS
Enhance and celebrate the diversity of the profession geographically, demographically, and culturally

AWARDS & HONOURS

AWARDS CEREMONY 2021

On June 10, 2021, CBV Institute was pleased to host its annual Awards & Honours Ceremony. Institute leadership and the Chair of the Board of Directors came together virtually to recognize CBV professional excellence and Student achievement. Inspiring remarks from awards and honours recipients were broadcast publicly over YouTube via livestream. The individuals below were celebrated for their achievements at the ceremony.

Awards for Academic Excellence

GEORGE OVENS AWARD & MQE MEDALISTS
In Recognition of Achievement on the 2020 MQE

In honour of George Ovens, CBV, one of the founding Members of CBV Institute, this award is presented to the Membership Qualification Examination (MQE) candidate who achieves the highest mark in a particular year. Special recognition also goes to second highest mark and third highest mark on the MQE.

1st Place 2020 MQE Marissa Barry

1st Place MQE
Marissa Barry
CPA, CBV

2nd Place 2020 MQE Michael Anthony Ruta

2nd Place MQE
Michael Anthony Ruta
CPA, CA, CBV

2nd Place 2020 MQE Alex Stern

2nd Place MQE
Alex Stern
CPA, CBV

2nd Place MQE
Pier-Olivier Tremblay
CPA, CA, CBV

3rd Place 2020 MQE Stephanie Labrecque

3rd Place MQE
Stephanie Labrecque
CPA, CBV

3rd Place 2020 MQE Adam Owczar

3rd Place MQE
Adam Owczar
CPA, CBV

SCHOLASTIC ACHIEVEMENT AWARD
In recognition of achievement throughout the 2020 terms in the CBV Program of Studies.

This award, sponsored by EY, in honour of Ronald W. Scott, is granted annually to recognize the Student who achieved the highest average mark on all required courses in the CBV Program of Studies.

2021 SCHOLASTIC ACHIEVEMENT AWARD Rachel Lee

Rachel Lee
CPA, CBV

CBV Awards of Excellence

TOP CBV UNDER 40

This award is presented to a CBV under 40 who has demonstrated success in a broad diversity of interests, brought distinction to the profession, and has given outstanding service.

2020 TOP CBV UNDER 40 Louise Poole

Louise Poole
CPA, CA, CBV, CFF

CBV INSTITUTE AMBASSADOR OF THE YEAR

This award is granted annually to a CBV or Student who, through their volunteer contributions, has had a significant impact on the advancement of CBV Institute programs, services and objectives. This award includes a donation to the charity of the recipient’s choice.

2021 CBV INSTITUTE AMBASSADOR OF THE YEAR Ron Martindale

Ron Martindale Jr.
CPA, CA, LPA, CBV, CFF


Hall of Honours

FCBV

Granting of the Fellow designation is the highest honour CBV Institute confers. The FCBV recognizes those Members who have brought distinction to the business valuation profession and have achieved recognition in their professional lives and communities.

FCBV Bob Boulton

Robert Boulton
CPA, CA, FCBV

FCBV Patrick Coady

Patrick Coady
FCPA, FCA, FCBV


LIFE MEMBER

The Life Member standing is granted to CBVs and FCBVs of eminence in their valuation careers who are retired from active practice.

Life Membership Tom Muir

Tom P. Muir
FCPA, FCA, FCBV

AWARDS & HONOURS 2021-2022

Awards and Honours announced in 2021-22, presented at our virtual awards ceremony in June 2022.

Awards for Academic Excellence

GEORGE OVENS AWARD & MQE MEDALISTS
In Recognition of Achievement on the 2021 MQE

In honour of George Ovens, CBV, one of the founding Members of CBV Institute, this award is presented to the Membership Qualification Examination (MQE) candidate who achieves the highest mark in a particular year. Special recognition also goes to second highest mark and third highest mark on the MQE.

1st Place MQE
Janece Boersma
CPA, CBV

1st Place MQE
John Drake
CPA, CBV

2nd Place MQE
Eric Boehm
CPA, CBV

3rd Place MQE
Claire Neale
CBV

3rd Place MQE
Micheal Zelma
CPA, CBV

SCHOLASTIC ACHIEVEMENT AWARD
In recognition of achievement throughout the 2021 terms in the CBV Program of Studies.

This award, sponsored by EY, in honour of Ronald W. Scott, is granted annually to recognize the Student who achieved the highest average mark on all required courses in the CBV Program of Studies.

Erin Sparrow
CPA, CBV

CBV Awards of Excellence

TOP CBV UNDER 40

This award is presented to a CBV under 40 who has demonstrated success in a broad diversity of interests, brought distinction to the profession, and has given outstanding service.

Kevin Hutchinson
CPA, CA, CBV, FRM

CBV INSTITUTE AMBASSADOR OF THE YEAR

This award is granted annually to a CBV or Student who, through their volunteer contributions, has had a significant impact on the advancement of CBV Institute programs, services and objectives. This award includes a donation of $1,000 to the charity of the recipient’s choice. This year, a donation was made to The Children’s Book Bank on the recipient’s behalf.

Jennifer Samarco
CPA, CA, CBV

Hall of Honours

FCBV

Granting of the Fellow designation is the highest honour CBV Institute confers. The FCBV recognizes those Members who have brought distinction to the business valuation profession and have achieved recognition in their professional lives and communities.

Craig McDougall
FCPA, FCA, FCBV

STAKEHOLDER VALUE

CBVs AND STUDENTS SHARED THEIR THOUGHTS AND IDEAS. WE LISTENED.

In 2021, a number of important surveys were conducted with internal stakeholders and a number of consultations were held on key issues through member task forces. These events were a vital opportunity for the CBV community to provide input on Institute initiatives and share their thoughts.

SMALL PRACTICE TASKFORCE

CBV Institute met with practitioners to obtain current input on the challenges faced by smaller business valuation firms in the market today.

PRACTICE STANDARDS

CBV Institute published a member survey addressing Practice Standards 110, 120, and 130, which informed discussions of the Professional Practice and Standards Committee of CBV Institute and led to the creation of an exposure draft with proposed standard revisions.

OUR PATH FORWARD

In November, we conducted a comprehensive Member/Student survey titled, Our Path Forward. The survey was a crucial step in the development of the Institute’s strategy for the CBV profession into the future. Gaining a thorough understanding of Member and Student viewpoints was essential and informed the creation of our new Strategic Plan.

Some key learnings:

90% of respondents agreed the CBV designation provides good value to them

84% of respondents agreed that they are likely to encourage others to pursue a CBV designation, and/or likely to require the CBV designation for new hires

79% of respondents agreed that they are satisfied with the service provided by CBV Institute.

NEW STRATEGIC PLAN

As the world emerges from the COVID-19 pandemic and looks to what is next, the Institute has positioned itself well to excel in this new business environment.

CBV Institute worked hard over the course of 2021 to develop a new, extensive strategic plan that would serve to grow the Institute’s Member and Student bases domestically and internationally and build a stronger global CBV community. The resulting plan, released in early 2022 and titled CBV Institute Strategic Plan 2022-2025 – Building on 50 Years of Excellence, was developed in consultation with hundreds of internal and external stakeholders. The plan will lead to further enhancements to our CBV Program of Studies and professional standards, elevate the Institute’s position in the global valuation community, and grow awareness of the CBV designation in key academic and business communities around the world.

BUILDING OUR CBV COMMUNITY

COVID-19 has continued to present countless challenges when it comes to community building. This is true in any industry and sector. However, CBV Institute has stepped up to provide a vast collection of virtual, and when possible, in-person offerings focused on creating a closer CBV community. In 2021, we hosted several events dedicated to networking and soft-skill development. Some highlights include:

  • Young Professionals in Valuation (YPV) Networking Event: The YPV organizing committee hosted a well-attended in-person networking event in Vancouver.
  • CBV Women in Valuation: Held a virtual event in July helping CBVs find balance in their lives. The pandemic has eroded work/life balance for many. This event shifted the focus of attendees from trying to “do it all” to a more balanced approach.
  • Member Practice Roundtables: The CBV Institute leadership team conducted six practice roundtables with Canadian Members from coast to coast, connecting practitioners across the country with Institute staff and providing a forum for discussion on technical and practice-related topics.
EVOLVING EXCEPTIONAL EDUCATION

In 2021, the CBV Program of Studies continued to evolve to reflect current trends confronting businesses and business valuation practitioners. Course notes are currently being refreshed with plans to be circulated in 2022/23. Updates include new content on financial instruments, real estate, and cryptocurrency, ensuring that we continue to raise the bar by integrating the latest relevant topics into our industry-leading curriculum.

COURSE REGISTRATION

Year | Total Registration
*One Term Only

“The CBV exists because our profession cannot be dulled down to a single tool, and we need to protect that.”

– CBV/Student Survey Respondent

“I am proud to be a CBV and I think the Institute is doing a good job for the profession.”

– CBV/Student Survey Respondent

PROFESSIONAL EXCELLENCE

Leading The Push for Global Harmonization of Business Valuation Terms

CBV Institute was pleased to publish a final version of the International Valuation Glossary – Business Valuation, the culmination of a two-year development process. The Institute led this global collaboration of Valuation Professional Organizations in bringing this publication to fruition. The Glossary updates, modernizes and harmonizes definitions for business valuation and intangible asset terms for the benefit of the global business valuation profession and users of valuation services. The publication of this document is a significant step towards achieving a global valuation profession.

Advancing Institute Practice Standards

Standards must continually remain up-to-date relevant and best-in-class to uphold the high standards of practice that the marketplace expects from the CBV profession. In June 2021, the Institute published an Exposure Draft titled, Revisions to Practice Standards Nos 110, 120, and 130. This document proposed revisions to further raise the bar on our industry-leading standards and begin to align our valuation standards to International Valuation Standards, where possible. The targeted improvements proposed are the first refresh of the valuation practice standards in decades and were in response to member feedback in areas which are challenging in practice, such as calculation valuation reports and where the market and users demand more clarity.

Growing Practice Inspection Program

Our third year of practice inspection was highly successful and inspection results were positive. We expanded the program by adding new inspectors and increasing the number of work products selected for inspection. Key practice inspection findings for the year were shared once again with practitioners through the 2021 Practice Inspection Program Summary Report. The report provided additional guidance in areas where compliance with applicable professional standards can be improved.

ELIGIBILITY FOR 2021 PRACTICE INSPECTION

Emphasizing Professional Development

Continuing Professional Development (CPD) enables CBVs to advance the professional excellence expected of the CBV profession in a rapidly changing business world.

That is why ongoing CPD is a requirement of CBV Institute. CPD enables CBVs to maintain the skills and knowledge to stay up-to-date and at the cusp of the latest thinking to provide trusted valuation advice for today’s business challenges.

In 2021, we offered webinars and presentations on a diverse range of topics to ensure relevant content for all CBVs. We hosted a total of 32 events, with nearly 2,000 attendees and delivered more than 12,000 CPD hours.

Events included:

  • Practical Lens on Private Equity Valuations
  • Revenue-Based Contingent Techniques
  • Putting the Pin in Net Working Capital: Important Value Implications for M&A Transactions
  • Cost of Capital and the COVID Pandemic: Has Anything Changed?
  • Practical Issues in Family Law
  • Hiring a CBV: Insight From Commercial Litigators
  • The Shifting Credit Markets and How Best to Access Them
  • A Recipe to a Great Economic Forecast
  • A CBV Practitioners Toolkit
  • Best Practices in the Valuation of Contingent Considerations
  • Litigation Support Issues in Personal Injury Matters: Perspectives of Litigation Counsel and CBVs
  • Crowdsourced Information and Valuation
Total Events Held
Total Event Attendees
Total CPD Hours

INTERNATIONAL VALUATION
STANDARDS

CBV Institute continues to be actively involved in worldwide consultations on a global set of universally accepted valuation standards – the International Valuation Standards (IVS), developed by the International Valuation Standards Council (IVSC).

As a member and sponsor of IVSC, the Institute remains deeply engaged in a variety of matters of shared importance for the future of the global valuation profession, including regular revisions to IVS. We do this by maintaining relationships, commenting on IVSC exposure drafts, publishing on other emerging thought leadership topics, and attending conferences. Numerous CBVs participate actively as members on IVSC technical boards. Most recently, Thomas Lee, CBV, appointed Chair of the Financial Instruments Board, which plays a pivotal role at the IVSC in leading the development of international valuation standards for financial instruments.

Throughout 2021, the Institute’s Professional Practice and Standards Committee (PPSC) continued to explore ways in which IVS could be adopted as part of CBV Institute Practice Standards. These discussions remain ongoing with further details expected during 2022.

During 2021, the Institute participated in two IVSC working groups seeking to tackle current trends and their impact on the profession – one on the topic of environmental social and governance (ESG) factors and a second on automated valuation models (AVMs) and automation within the valuation process. An IVSC perspectives paper titled “ESG and Business Valuation” released in March 2021 began to explore how ESG characteristics are, or can be, incorporated into the value measurement process.

CBV CONGRESS 2021

CBV Congress 2021 was one of the most well-attended Congresses that the Institute has ever hosted. Held virtually for the first time, the event was conducted on a new, innovative, and interactive online platform that enabled attendees to network and chat amongst themselves throughout the day.

Those in attendance received three days of timely, thought-provoking content across a wide spectrum of topics. Engaging speakers, including notable keynotes from Aswath Damodaran and Shawn Kanungo, shared invaluable knowledge and astute insights.

CPD hours delivered
Attendees

“Congrats to the team on organizing a great event in this difficult time! I really liked the forward-thinking topics.”

— CBV Congress Attendee

“The best virtual conference I have attended in 2021. I have attended eight in 2021. Well done.”

— CBV Congress Attendee

“Great virtual event and high quality speakers. Thank you.”

— CBV Congress Attendee

BRAND BUILDING

CEMENTING OUR PLACE IN THE INTERNATIONAL BUSINESS VALUATION COMMUNITY

We continue to pursue opportunities to develop and grow relationships with other global leading organizations, both in Canada and abroad. CBV Institute continues to liaise with valuation professional organizations, professional bodies and standard setters and regulators Including but not limited to American Institute of Certified Public Accountants or Association of International Certified Public Accountants (AICPA), the American Society of Appraisers (ASA), the Appraisal Institute of Canada (AIC), CPA Canada (CPAC), the Family Dispute Resolution Institute of Ontario (FDRIO), the International Valuation Standards Council (IVSC), Canadian Revenue Agency (CRA), and the Ontario Securities Commission (OSC).

Thought Leadership

CBV Institute conducted several thought leadership initiatives to raise the profile of the CBV brand in 2021.

INTANGIBLE ASSETS CAMPAIGN

Intangible assets are growing increasingly more prominent in popular culture and beyond and CBVs are expertly placed to leverage their unique skills and share their expertise on this topic. Late in 2021, we released a document and three video interviews to further the discussion of the difficult task of valuing intangible assets.

Tiki Cheung, CBV
Chris Polson, CBV
Kevin Hutchinson, CBV

CBV INSIGHTS

This year, as we continued to explore new opportunities to reach new audiences, CBV Institute launched a new section on our website to assist with content marketing efforts. Titled CBV Insights, this section on the website, dedicated to promoting CBV thought leadership, was central to Institute marketing campaigns conducted.

Topics launched included:

  • Cryptoassets
  • Restructuring & insolvency
  • Expropriation
  • Key insights from CBV Congress 2021:
    • Forecast Validation
    • Valuation Insights for Smaller Businesses
    • Causation & Financial Losses

“The value of the CBV is in our people…they publish thought leadership on their own and reference the CBV brand with pride”

— CBV/Student Survey Respondent

Marketing Campaign Statistics

In 2021, CBV Institute embarked on two digital marketing campaigns directed at C-Suite executives in major markets in Canada. The campaign, conducted over 2 flights, yielded extremely positive results.

Total Campaign Impressions
Total Site Traffic Increase During Campaigns
YOY Increase in LinkedIn Followers
Total Unique Site Visits from Campaigns

2021 Operations

OPERATIONS OVERVIEW

CBV Institute’s financial position remains strong. Net assets increased marginally to $3.5 million.

The financial strength provided by the $3 million investment portfolio enables CBV Institute operations to continue during periods of disruptions and allows the Institute to pursue initiatives in support of strategic objectives. The amount maintained in the investment portfolio is reviewed annually and is in alignment with the practices of similar organizations and future requirements based on projected levels of expenditures.

Fees for 2021 were held at 2020 levels and have not increased since 2018 due to continued efficiency improvements in operations.

EXCESS OF REVENUE OVER EXPENDITURES INCREASED TO $97,612

  • Course and examination revenues marginally decreased from 2020 as anticipated following an influx of students into the Program of Studies in 2020 during COVID.
  • Membership fee revenues increased 11% due to increased MQE writers and new members.
  • Continuing professional development revenues increased substantially as CBV Congress 2021 was held virtually, in contrast to 2020 when CBV Congress was cancelled due to the COVID-19 pandemic.
  • Investment income and gains of $108,481 decreased substantially from 2020 levels. The investment portfolio is comprised of pooled funds that are professionally managed. The significant majority of the portfolio is invested in bonds, which were adversely affected during the year by the outlook for a rise in interest rates.
  • Course and examination expenditures remained at 2020 levels.
  • Marketing and communications expenditures increased by 49% due to a resumption of digital advertising efforts. Such efforts were partially deferred in 2020 due to the general disruption in the business community caused by the COVID-19 pandemic.
  • Continuing professional development expenditures remained at 2020 levels despite the holding of Congress 2021 due to the cost efficiencies of holding a virtual congress and the avoidance of hotel facility cancellation penalties.
  • Salaries, office and administration expenditures did not increase as travel and meeting activities continued to be curtailed due to COVID-19 pandemic related limitations.

BOARD OF DIRECTORS 2021 – 2022

OFFICE OF THE INSTITUTE