When do you need a certified business valuator (CBV)?
A certified business valuator or “CBV” is useful when you have two parties that want to transact a business but can’t decide what the business is worth. The CBV will come in and have a look at your financials and line of business and come to a decision on value range as a non-biased third party. Now the transacting parties just need to come to an agreement on the transaction details. CBVs are convenient because you get a much more dialed in value that you can then work from, however, they do come at a cost. Depending on the size of business and organization, the typical cost is $10-$15k for their services. So again, a small business looking with revenues of less than $500,000 may not be able to justify spending the money to hire a CBV. However, a business with a negotiated value in the millions may find value in the greater accuracy provided by a CBV.