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Volume 36, Issue 1 | March 2011
The Canadian Institute of Chartered Business Valuators 277 Wellington St. West, Suite 710 Toronto, ON M5V 3H2 Telephone: (416) 977-1117 Fax: (416) 977-7066 E- mail: [email protected] www.cicbv.ca
Published by the Institute to inform Members of CICBV activities and developments in the business valuation field. (ISSN 0703 - 1939)
EDITOR: Robert Doran, CBV
ValuatorThe Business
1
Message from the Chair of the Board of Directors2011 is a landmark year for The Canadian Institute of Char-tered Business Valuators. This year we celebrate the 40th anniversary of the formation of the Institute in 1971, by an ini-tial group of valuation professionals headed by the late George Ovens (see feature on page 2). Since then we have grown to become the largest busi-ness valuation organization in Canada, with over 1,400 Members and 1,000 Students from throughout Canada and the world.
As part of our 40th anniversary we are refreshing the Chartered Business Valuators brand. For the last few weeks you have likely seen our newly released logo in a number of places; it marks the first step in our “rebranding”, and over the course of this year we will be promoting CBVs with increased media exposure. We will also be developing new tools and materials to help you promote the CBV designation.
I hope many of you have also had a chance to visit the new CICBV website, also launched earlier this month. In addition to being completely redesigned and reorganized, it in-cludes a number of new features and has improved functionality (some of these new features are explained on page 3). The website also serves to present the new Chartered Business Valuators brand to the public, featuring our new logo, look and messaging. It is the culmination of a number of months’ work by the Technology Task Force, Communica-tions Committee, CICBV Staff, and our branding firm Tenzing, and we are pleased and excited that it is complete — thanks to all of those who have helped with the planning, development and testing of the website.
2011 brings another significant change — Jeannine Brooks, our President & CEO, will be retiring at the end of this year. Jeannine will be greatly missed by Members, Students, the CICBV Staff and Board of Directors alike (see my comments in the article on page 7). On behalf of the Institute, I wish Jeannine the best of luck in her future endeavours.
Let’s hope 2011 is interesting, exciting and profitable for all of us — good luck.
Best Regards,
Farley Cohen, CBV
Message from the Chair of the Board of Directors
CICBV 40th AnniversaryNew CICBV WebsiteMember Recognition AwardsInformation for Members and StudentsStudents’ CornerInternational Corner Committee ReportsContinuing Education/Events
CommitteesAnnouncements, Appearances and
AccoladesWriter’s Edge Advertisements
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CICBV 40th AnniversaryThis year, the Canadian Institute of Chartered Business Valuators (CICBV) marks its 40th anniversary as the preeminent business valu-ation organization and education program in Canada. Established in 1971 by a group of Canadian business valuation professionals headed by the late George Ovens, the Institute has over the last 40 years wel-comed over 1,400 Members into its ranks, organized dozens of national conferences, facilitated hundreds of regional workshops and continu-ously published two highly-regarded and industry cornerstone journals for business valuation professionals. We take this opportunity to re-member the career and contributions of George Ovens.
The George Ovens StoryThe late George Ovens was the President of the CICBV from 1972 to 1973. During these early years, George was a key driver in the implementation of the Institute’s vision and purpose. Knowing that professional valuation was an under-served area in Canada, George was tireless in educating business people in the functions and ben-efits of valuation. He wrote many articles, gave numerous talks and lectures on business valuations, even during early times when there was little interest in the area. He drafted Members, raised funds, or-ganized conferences and worked diligently to establish the Institute’s cornerstone publications, The Business Valuator and Journal of Busi-ness Valuation. George was also committed to building an education program for the Institute, which thrives today.
George’s life and career were rich with leadership. Born in 1911, in Enniskillen Northern Ire-land, he arrived in Canada in 1930 and worked as an accountant for IBM. He went to war in 1940 with the Royal Canadian Air Force and honed his computational skills navigating bomb-ers, earning the Distinguished Flying Cross. After the war, he joined the Department of National Revenue as an equity valuator in the estate tax area rising to the position of Chief Valuator and acquiring his Chartered Accountant’s designation in 1946. He was awarded a fellowship by the Ontario Institute of Chartered Accountants (FCA) in 1968. From 1970 to 1974, he was partner in McDonald Currie/Coopers Lybrand. In 1971, he was co-editor of the first major busi-ness valuation text in Canada, Business and Securities Valuation (Methuen). When he became President of the Institute he was at the height of his professional career, having been involved in thousands of valuations from the $30,000 corner grocery store to the multi-million dollar corporation.
George enjoyed the challenge of testifying in court and was a tough opponent never to be un-derestimated. He was an inveterate reader of eclectic subjects and could quote Shakespeare as easily as current valuation issues. He loved discussion and debate and was always ready to impart knowledge, particularly to young people in the field.
George Ovens was one of the pioneers of the business valuation profession in Canada. His breadth of professional contributions and his early leadership of the Institute helped form the cornerstones of the Institute as we know it today, 40 years on.
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New CICBV WebsiteWe are pleased and excited about the new CICBV website, launched on March 7. We hope you have had a chance to navigate through it already. One of the main changes is the reorganiza-tion of the content in a more logical and intuitive way.
We have also added some new functionalities, such as the ability for Members to create a profile that will be used in an enhanced search function (see feature below). You can now include a short description of your areas of expertise, add a photo, and select which address you wish to make public. This will better help potential clients, other Members and Students connect with you.
We would like to know what you think about the website; your feedback will help us continue to improve it. Please send your comments or questions to Judith Roth at [email protected].
Stay tuned to upcoming E-Flashes and future Newsletters for more “How-to’s” on using the new site.
To set up your profile:
1. Log in to the site. NOTE: to log in for the first time, you will need to reset your password. You can do this easily from the home page, by clicking on “Forgot my password” — you will just need your current username (it has not changed), and a new password will be sent to your preferred e-mail address.
2. Go to “Your Account” at the top of the screen, and click on “Profile”:
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3. Click on “Edit” beside “Personal/Contact Information”:
4. Select whether or not to be included in the public search. NOTE: since you can now select what information to show in the public search, you will need to reset your profile as public even if you had done this on the old website. (All Members will be viewable by other Mem-bers and Registered Students, whether they are public or not.)
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5. Select the information you want the public to see:
6. If you wish to add a photo, click on “Edit” beside “Profile Picture”:
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7. Click on “Browse for Image” to upload a photo from your files:
8. Go to “View Public Profile” in the black title bar to see your full profile.
Member Recognition AwardsThe CICBV is currently accepting nominations to recognize our Members for the below awards for 2011. We encourage you to nominate your fellow Members, who you feel have made a sig-nificant contributing to the business valuation profession.
Please refer to the Member Recognition section of our website for criteria and nominating information for each award below (once logged in, go to Resources > Members Information > Member Recognition).
Top CBV Under 40 Award — In Memory of David Cornfield The CICBV Top CBV Under 40 Award, sponsored by Deloitte & Touche LLP, in memory of David Cornfield, CA, CBV, is intended to recognize younger CBVs who have demonstrated success in a broad diversity of interests, brought distinction to the profession and given outstanding ser-vice. Their successes will be a combination of professional and personal life endeavours.
Read more about David Cornfield here.
Communicator AwardThe CICBV Communicator Award is granted each year to a deserving CBV who has undertaken communication activities and actions that have had a beneficial impact on the promotion of the business valuation profession to non-CBVs.
Life MembershipAny Member who is no longer actively engaged in business valuations and does not intend to further pursue the profession, who has rendered distinguished service to the business valua-tion profession, may be designated as having a Life Membership in the Institute.
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Nominations must be submitted by April 30, 2011, by e-mail, fax or mail, to:
Jeannine Brooks, MBA, CAE, FCGA President & CEO The Canadian Institute of Chartered Business Valuators 277 Wellington Street West, Suite 710 Toronto, Ontario, M5V 3H2 Fax: 416-977-7066 Email: [email protected]
Information for Members and StudentsJeannine Brooks is Retiring!After 11 years of leading our organization Jeannine Brooks has de-cided it is time to slow down, take it a little easier and catch up on her travelling! Effective December 31, 2011 Jeannine will be officially retiring from her current position as President & CEO of the CICBV.
During her tenure with us Jeannine has been instrumental in seeing our organization grow — both in terms of numbers of Members and Students, and also in terms of our reputation within and outside of Canada.
A Search Committee has been assembled to be chaired by Eleanor Joy, CBV, and we will be working with a search firm to identify and recruit our new President & CEO.
We are sad to see Jeannine leave us, however we wish her and her husband Brian all the best.
Farley Cohen, CBV, Chair
Discussion Paper IssuedThe Institute recently issued for comment a Discussion Paper concerning a proposed Practice Bulletin concerning Guidance on Types of Valuation Reports.
The purpose of the proposed Practice Bulletin is to assist the Valuator in:
(i) determining the scope of review that is appropriate for each of the three types of Valuation Reports;
(ii) determining the suitability of the three types of Valuation Reports for various purposes;
(iii) assessing the impact of the availability of information on the type of Valuation Report; and
(iv) determining whether it is appropriate to provide a lower level of assurance where a higher level of assurance could be provided based on the extent of review, analysis and corrobo-ration of relevant information.
The Discussion Paper is open for comment until May 31, 2011 and is available on the CICBV website here.
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Regional Election UpdateNominations for the election of a Director by those Members whose principal place of business is in the province of Ontario (excluding the City of Toronto and the regional municipalities of Durham, Peel and York), were called for and received by the Institute.
As only one nomination was received for this Region, Mark Keuleman, CBV was hereby de-clared elected by acclamation as the Regional Director for the province of Ontario. Mark has expressed his willingness to serve as a Director of The Canadian Institute of Chartered Busi-ness Valuators.
The term of this elected Director will be for three years and will commence immediately following the next Annual General Meeting of Members (scheduled for June 16, 2011 in Calgary, AB).
Membership Fees The Membership Fees invoices were mailed on January 17, 2011. If you have not paid, please log in and click on “Your Account”; under Invoices/Receipts you will find your Membership Fees invoice which can be paid online there.
Membership Fees are due upon receipt of Invoice. If you have not received the invoice please contact Judith Roth at [email protected] or 416-977-1117 ext. 226.
Reminder: you may now also pay your Membership Fees using Amex card.
Changes to Retired Member StatusPlease note that the age for Retired Members has been reduced, from 60 to 58. To apply for Retired Member Status, please click here. To view the entire Fee Structure Policy online, please click here. If you have any questions regarding your status or the policy, please contact Judith Roth at [email protected] or 416-977-1117 ext. 226.
Mandatory Continuing Education Deadline for Submission: April 30, 2011Policy 2.3.1. — Policy on Mandatory Continuing Education, states that:
“All Members, unless exempted, are required to complete a minimum of 20 hours of Continuing Education per year, averaged over a consecutive three-year period.”
It also states that:
“At least one half of the minimum hours of Continuing Education shall consist of struc-tured activities.”
The Members that are exempt are Life Members, Retired Member, and Disability Leave Members.
In the event that a Member has not accumulated and reported 60 hours of continuing educa-tion in 2008, 2009 and 2010 by April 30, 2011, they may be suspended and/or terminated as a Member.
To submit your hours log in and click on Continuing Education > CE Hours menu. You will find the tracking system where you can enter your hours or you can print the Compliance form.
For more information please see Frequently Asked Questions section below or contact Judith Roth at [email protected] or 416-977-1117 ext. 226.
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Continuing Education Frequently Asked Questions 1. How many hours of Continuing Education am I required to have?
All Members are required to complete not less than 20 hours of Continuing Education per year, averaged over a consecutive three-year period.
At least one half of the minimum number of Continuing Education hours must consist of struc-tured activities.
Failure to undertake at least 20 hours of Continuing Education in a given year will not result in any action by the Institute, provided the Member has completed 20 hours of Continuing Educa-tion per year, averaged over a consecutive three-year period.
2. What types of Continuing Education activities qualify as Structured?
Structured activities are defined as measurable, verifiable learning activities with attendance records, tests or exams.
These activities include:
Courses, seminars or conferences•
Technical Review and Development discussion groups•
Advanced or post-secondary education courses•
Structured self-study programs (where there is some evidence of completion, such as • a Certificate or transcript)
Teaching business valuation or similar courses•
Preparation time for lectures and presentations•
Research and writing time for professional or business related articles•
3. What types of activities qualify as Unstructured Continuing Education?
Unstructured activities are independent and informal, and may include:
Private reading, study and technical research•
Auditing of courses (i.e. CICBV courses)•
4. Is there a limit to the number of Unstructured hours I can declare?
There is no limit on the number of unstructured Continuing Education hours, but you have to have a minimum of 30 structured Continuing Education hours, averaged over a consecutive three-year period.
5. I do research for projects at work; can I count this as part of my Continuing Education hours even though I am being paid?
Yes, you may count those hours as unstructured.
6. How do I know if the course, training, seminar, etc. qualifies as Continuing Education?
As long as they are relevant to your professional responsibilities the course, training, seminar, etc. qualifies as Continuing Education activities.
7. How many hours is each course, training, seminar, etc. worth?
The number of hours you report is the actual hours that you spent engaged in the educational activity.
8. What happens if I do not have an average of 60 hours in a three-year period?
You will have until October 31st of the following year to make up the shortfall before you are suspended as a Member.
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9. What does it mean to be suspended?
It means that you cannot identify yourself as a Member in good standing.
10. Can I be exempt if I am not working?
Yes, you may apply for exemption if you are not working or practicing, as a consequence of long-term disability or if you have retired status.
11. Do I need to keep records of my Continuing Education activities?
Yes, Members must maintain detailed records supporting their reported Continuing Education activities for 5 years.
12. What happens if I fail to report CE?
You will be suspended following notice.
The JBV Goes GreenThe Journal of Business Valuation is now available electronically. You will be notified through the E-Flash as new issues become available online; however, you may still request a paper copy if you require one.
You can find the current and past issues of the JBV online, once logged in, under Resources > Publications > Journal of Business Valuation.
Updated Casebook — Coming SoonThe CICBV Valuation Casebook has been recently updated to include many new summaries of legal cases relevant to valuation, of interest to Members and Students.
The updated Casebook will be posted online shortly; you will be notified through the E-Flash when it is available and how to access it.
IVFR Course Updated: Focus on IFRSThe Introduction to Valuation for Financial Reporting (IVFR) elective course, which provides an introduction to the accounting standards related to valuation for financial reporting, has been completely updated. The focus of the IVFR course will now be on International Financial Report-ing Standards (IFRS), the global financial reporting framework that Canada has adopted for public companies for fiscal periods beginning on or after January 1, 2011. Private companies in Canada have the option to adopt IFRS or the new Accounting Standards for Private Enter-prises (ASPE). The accounting standards in the U.S. are also discussed in this course due to the increasing level of integration and harmonization between International and U.S. standards. However, given the focus on IFRS in this course, the ASPE (and to a lesser extent, the U.S. ac-counting standards), will not be discussed in substantial detail.
Members interested in, and/or impacted by this field will find this course to be a valuable asset, as it provides an excellent introduction to key valuation principles, concepts, and approach-es, as well as the application thereof, related to fair value and impairment testing of goodwill and intangible assets under the current financial reporting framework for public companies in Canada. The IVFR course also provides an understanding of the role of a CBV on an audit team as a valuation expert.
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Members will also receive CE hours for the completion of this course. Those who successfully complete the full course (including exam) will receive 40 structured CE hours; Members who audit the course material may claim up to 10 unstructured hours.
The new IVFR course will be available for the Spring/Summer 2011 semester; registration opens April 4.
Research Tools for Members and StudentsThe Gateway Database The Gateway Database has been designed as a practical research tool for all valuators to bet-ter perform their day-to-day work, regardless of practice area. Developed in response to de-mand from our Members, we hope this tool will be helpful as a supplemental research source. To access the Gateway Database, log in and click on Resources > Research > Gateway.
The Gateway is intended to be a “living” source of information; to ensure that it remains current and relevant we ask users to suggest other sources that could be included. Please send any comments or suggestions to Judith Roth at [email protected].
BVResearch DatabaseThe BVResearch Database gives CICBV Members and Registered Students free, searchable, online access to a variety of articles from CICBV publications. More articles continue to be added, so we encourage Members and Students to visit the Database regularly.
Active CICBV Members and Registered Students should have received an e-mail from BVR with a User ID and Password to access the Database. If you did not receive your log in details, please contact the BVR Customer Service department at: [email protected] or by phoning (888) 287-8258 (toll-free).
Students’ Corner2011 Membership Entrance Examination (MEE)The 2011 MEE will be held on September 19, 2011. All documents relating to the 2011 MEE, includ-ing the application form, can be found on the Institute’s website. If you have any questions regarding the 2011 MEE, please contact Deborah Pelle at 416-977-1117 ext. 222 or [email protected].
The application deadline is May 6, 2011.
Updated IVFR CourseThe newly updated IVFR course, focusing on IFRS, will be available for the Spring/Summer 2011 semester. Students who are re-enrolling from previous semesters will be examined on the new course material.
Spring/Summer RegistrationRegistration for the Spring/Summer 2011 semester will open on April 4; the registration dead-line is May 16.
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Upcoming CICBV EventsFull details on the below events are available on the CICBV Website Event Calendar, including online registration:
April 19 — Webinar — • Fraud and the CBV Engagement: Watching for the Warning Signs
June 15 — Calgary — Half-Day • Small Practice Roundtable
June 15 — Calgary — Full-Day • Cost of Capital Seminar with Roger Grabowski, offered for the first time in Canada since 2008; no other Canadian dates planned in the foreseeable future.
September 8-9 — Halifax — • Eastern Regional Conference; watch the E-Flashes for more details as they become available.
Western Regional Conference — June 16-17 — CalgaryThe CICBV Western Regional Conference will be held in Calgary June 16-17, 2011. With approxi-mately 200-300 Members and delegates from the business community, the Western Regional Conference is expected to stimulate discussion and the exchange of ideas between attendees. Topics are technical and/or topical in nature and are intended to be relevant to CBVs and the business community at large.
Topics at this year’s conference include: an economic update for Western Canada, various technical business and securities valuation issues, current trends in litigation, an International update, current infrastructure investment, and value-drivers and early-stage capital/angel in-vesting trends. This will allow delegates a broad perspective on the current business environ-ment in Western Canada.
The intention is to have two Keynote Speakers (one on each day). On June 17, the Keynote Speaker will be Ezra Levent, a lawyer, conservative political activist and an award-winning au-thor. Mr. Levent’s topic is taken from his publicly-acclaimed book, Ethical Oil: The Moral Case of Canada’s Oil Sands.
Registration is now open; sign up by May 1 and save $150! Watch the website for additional speaker and topic details as they are finalized.
Other Organizations’ Events May 30-31 — Toronto — • Advanced Mergers and Acquisitions Conference. CICBV Members and Students receive a 15% discount for this event; please mention promotional code 11690CICBV when registering.
International Corner International ActivitiesThe CICBV international initiatives continue to be very busy and are generating a great deal of interest globally.
International Institute of Business Valuers (IIBV)Three international business valuation courses are being developed, to be offered outside of North America in July 2011. The courses are IIBV101 — Principles of Valuation; IIBV102 — Cost of Capital; and IIBV103 — Business Valuation Comprehensive Case Study.
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Negotiations to offer the courses in London, UK, through the Institute of Chartered Accountants of England and Wales are taking place. The plan is to offer the IIBV101 — Principles of Valuation and a 2-day seminar on Valuation of Intangible Assets in London in July 2011.
Requests were received to deliver the courses in China, Russia and Europe through accounting firms. Negotiations are taking place with a firm in Shanghai to offer the three IIBV courses in July 2011.
For more information on the IIBV visit www.iibv.org.
International Valuation Standards Council (IVSC) updateAs the established international standard setter for valuation, the IVSC develops and maintains standards for the reporting and disclosure of valuations, especially those that will be relied upon by investors and other third party stakeholders.
IVSC meetings took place on March 1 (International Valuation Professional Board) and on March 4 (International Valuation Standards Board). Jeannine Brooks and Eleanor Joy, CBV at-tended the meetings representing the CICBV. The new international standards were approved at the March 4 meeting.
For more information on the IVSC visit www.ivsc.org.
Organization for Economic Co-operation and Development (OECD)In 2010, OECD completed a major revision of the Transfer Pricing Guidelines including a revi-sion of its guidance on comparability and profit methods and the development of new guidance on the transfer pricing aspects of business restructuring.
OECD has started a new project on the Transfer Pricing Aspects of Intangibles. This work will be carried out by Working Party No. 6 on the Taxation of Multinational Enterprises (“WP6 TPI”). The CICBV will participate in this project as Richard Ginsberg, CBV will be making a presenta-tion to the WP6 TPI, and there will be meetings with business representatives on the valuation of intangibles for transfer pricing purposes.
International CBVs The International section of The Business Valuator features an interview with a Member practic-ing outside of North America. From Asia to the Caribbean, to Europe and the Middle East, this globetrotting section provides Members and Students with a snapshot of how business valuation is regarded and practiced from all corners of the Institute’s membership and, in turn, the world.
Q&A with Scott McCaw, CBV — Kenya
This feature focuses on Scott McCaw, CBV, Group Finance Director of the Panafrican Equip-ment Group of Companies, the authorized Komatsu distributor providing sales, parts and ser-vice support principally to the mining and construction industries in Kenya, Tanzania, Ghana,
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Nigeria and Sierra Leone, with site operations in Uganda. Scott McCaw is a Chartered Accoun-tant and Chartered Business Valuator and is currently located in Nairobi, Kenya.
Previously, Scott has served as the Chief Financial Officer for both the entertainment and edu-cational divisions of Cookie Jar, a global children’s entertainment company, the Senior Vice-President, Finance for AMEC Americas, and the treasurer and head of mergers and acquisitions for Wajax Inc. Scott brings over 20 years of financial and operational experience in external consulting and senior financial positions.
Over his career Scott has led over 40 acquisition and divestiture transactions and has raised over $1.0 billion in debt and equity in the public and private markets. As a well-respected leader in the finance arena, Scott co-authored the Advanced Business Valuation Course for the Canadian Institute of Chartered Business Valuators and has been invited to speak at finance conferences, symposiums and forums.
1. Why did you choose to pursue the CBV designation?
Years ago, having completed my CA and the in-depth Tax program, I was looking to broaden my experience and exposure to other areas of importance to public practice and ultimately, busi-ness management. This is what led me to the Corporate Finance Group of KPMG and the CBV program.
When you understand what improves the valuation of a business (either technically or other-wise) and you have a better understanding of how to improve business performance.
2. How does the practice of business valuations in your country differ from the practice of business valuations in Canada?
In my experiences, to date, in Kenya and in the Sub-Saharan countries I travel, I have not really come across a pure business valuation practice per se, although to be perfectly honest, I have not really had the need to look at this point. The large public accounting firms are present here as is investment banking to a degree (and they advertise) and so while the skill set is available, I would suggest that in general it is clearly not as well developed as in Canada. I believe that business valuation is also taught in certain university courses here, but the CBV credentials are not referenced.
The interesting thing, however, is that Kenya and many of the countries I frequent have a large population of expatriates in government organizations (embassies etc), NGO’s and industry. Further, there is a long history of British and other western European influences in these re-gions. Lastly, there are a number of international companies operating in the industries I deal with and, in particular, mining.
Despite there not being widespread recognition of the CBV designation, business valuations are practiced on a scale proportional to the local economy’s needs. I would simply suggest that it is less organized, the awareness levels are far lower and there is a large difference between the usages of technical business valuation by larger, international companies, than local do-mestic companies.
3. How relevant is the CBV designation in Kenya?
I would suggest that the designation is more relevant in Kenya and Sub-Saharan Africa, as the skill set it comes with is not nearly as common as it is in the western world. The regions that I operate in are developing at a fairly rapid pace due to large wealth creation in the natural resource sector — gold, iron ore, coal, manganese, bauxite, among others — and the spinoff of other growth areas such as infrastructure, housing, services, support business and also retail. Countries where this is especially notable in my areas of travel include Tanzania, Ghana and Sierra Leone where infrastructure development and business growth is particularly brisk and
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required. It is also happening in Nigeria and Kenya, but they are actually a little further along in certain ways. This is creating a large demand for skilled labour/professional personnel in many areas including accounting and finance.
These roles are typically initially filled by expatriates, but the drive for regional governments is to have these roles ultimately filled by local personnel. This is creating a high demand for train-ing in many fields.
The interesting difference is that notwithstanding the large number of universities and certain local population who have had the opportunity to study abroad and return with new skills, there is an obligation for the companies operating here to employ and train staff. In my current role in senior management, I spend more time teaching than I would in a similar role in Canada. This is a requirement and why expatriates are brought here – it’s about knowledge and skill transfer with the goal that over time, less expatriates will be required.
4. Is the CBV designation recognized in Kenya and Sub-Saharan Africa?
I do not believe the CBV designation is really recognized here, although the skill set is under-stood, to a degree, through the growth in regional stock exchanges, investment banking and other professional services. The market here recognizes the Chartered Accountant and the roles they may play, however the knowledge level of the CBV specifically is limited.
If there was a need to provide a business valuation for say dispute settlement or for presenta-tion as an expert witness, I would suggest that each expert would be evaluated on their own merits, as opposed to looking specifically for a CBV or other valuation accreditation. Here busi-ness valuations may be provided more so by the accounting industry or investment banking.
5. How do you see the valuation profession shaping up in Kenya and Sub-Saharan Africa?
I think as these regions continue to grow and develop, through initially mining and natural re-sources, tourism, etc, the growth in business in general will continue to occur. This will continue to drive the need for more sophisticated services, which include business valuation.
6. What opportunities do CBVs have in Kenya and Sub-Saharan Africa?
I think there will be a lot of opportunities for CBV’s as these markets grow. In particular you will see this grow in the accounting firms, banks, investment banking and in industry. The initial growth will be motivated by a growing need for CBV expertise which in turn will lead to the need to bring in outside skills (expatriates). That will lead to the development of regional training (universities or otherwise), which will enable the CBV skill set to be produced locally. This is generally how these markets develop.
It’s a cycle and journey that happens in many technical areas of skill development in these countries.
7. Who are the other professionals practicing valuations in Kenya and Sub-Saharan Africa and what are their qualifications? Is there any competition between yourself, your col-leagues and this group(s)?
It’s hard to say specifically, but I would suggest that much work in the valuations field is being performed by the Chartered Accountants in the region, MBA’s from business schools where some technical knowledge is provided as well as the banking sector. The only technically spe-cific valuation organization that I am aware of operating locally is Quantity Surveying, which targets real property.
If you are a CBV practicing internationally who would like to be featured in a future Q&A, please contact Lauren Kirshner, External Relations Coordinator, at [email protected].
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Committee ReportsCommunications CommitteeCBVs in the News• November, 2010: CBV Michelle Levac featured in article “The 21 biggest influences in tax
today“in International Tax Review.
• November 29, 2010: CBV Farley Cohen quoted in part seven of the Value series “Sell the business, sail into retirement” in The Globe & Mail.
• December 2, 2010: CBV Drew Dorweiler quoted in Forbes.com article: “Oh Canadiens: Inside the Richest Deal in NHL History”.
• December 3, 2010: CBV Farley Cohen quoted in part eight of the Value series “Planning ahead key to getting top value when selling” in The Globe & Mail.
• January 21, 2011: CBVs John Carruthers and Vimal Kotecha quoted in the article “Sizing up a firm is part calculator, part crystal ball” in The Globe & Mail.
Recent Presentations & University Events• Institute of Chartered Accountants of Ontario Designation Night — January 14, 2011: CBV
Anish Chopra promoted the CBV designation to MBA candidates and CA students at an event at the Royal York Hotel in Toronto.
• University of Saskatchewan — Edwards School of Business Accounting Designation Night — January 25, 2011: CBV Marc Hoffort presented on a panel of finance experts (CA, CGA, CMA, etc) to an audience of finance, accounting, and business students.
• University of Toronto at Mississauga — CBV Designation Night — February 8, 2011: CBV Guy Ng facilitated a CBV career information session to upper year finance and accounting undergraduates and graduate accounting students.
• Concordia University — John Molson School of Business — February 8, 2011: CBVs Ian Wooden and Drew Dorweiler presented at a Career Center Corporate Finance Event to an audience of MBA and upper year finance and accounting students.
• University of Toronto — Extern Program — Feb 21-23, 2011: CBVs Steven Hacker and Aman-da Salvatori hosted a University of Toronto accounting student for two days at their firms as part of the Extern Job Shadowing Program (see below article).
• University of Waterloo — Finance and Accounting Designation Night — March 14, 2011: The CICBV will have a booth at this accounting and finance designation event staffed by a CBV Member (TBD).
• University of Calgary — Haskayne School of Business Designation Night — March 22, 2011: CBV Gord McFarlane will represent the Institute at this university-wide financial designa-tion event.
CBVs Host Student for University of Toronto Job Shadowing ProgramCBVs Steven Hacker and Amanda Salvatori of Meyers Norris Penny LLP, Toronto, mentored a University of Toronto accounting student as part of the Institute’s 2nd annual partnership with the University of Toronto Job Shadowing program. Over three days from February 22-25, 2011 the CBVs warmly welcomed Shaun Datt into their office and gave him an understanding of their practice and the skills and training required to practice as a CBV.
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As CBV mentors, Amanda and Steven provided Shaun with the oppor-tunity to sit in on meetings, a technology luncheon, perform research, and interact with professionals in the field, gaining professional knowl-edge and insight about the value of acquiring the CBV designation.
“I think the program was a success,” said Amanda Salvatori. “Shaun was a well-select-ed candidate and conveyed that he enjoyed his time at MNP.”
The Institute participates in the University of Toronto Job Shadowing Program to give students from a range of backgrounds the
chance to learn about the CBV designation and its career pathways and to give Members the opportunity to share their valuable profes-sional experience with curious and motivated students. As the Insti-tute grows, partnerships with universities continue to be an important student recruitment initiative.
If you are interested in being a CBV Job Shadowing mentor in the 2012 Job Shadowing experience, please contact Lauren Kirshner, External Relations Coordinator, at [email protected].
Continuing Education/ Events CommitteesWorkshopsBC• January 19, 2011: Helmut Pastrick of Central 1 Credit Union presented his annual Eco-
nomic Outlook to 58 attendees. Six new BC CBVs were recognized and presented with their certificates by CICBV Board Members Eleanor Joy, CBV (Vice-Chair) and Andy Shaw, CBV (Director); see photo next page.
• February 16, 2011: David Allan presented Forest Industry Facts to 28 attendees.
Quebec• February 16, 2011: Lucie Demers, CBV, presented L’evaluation mobiliere a l’ARC to 29
attendees.
Toronto• February 22, 2011: new Ontario CBVs were recognized and presented with their certifi-
cates by CICBV Board Chair Farley Cohen, CBV, along with Jeannine Brooks, CICBV Presi-dent & CEO (see photo next page). Following dinner there was a panel discussion on Dis-pute Resolution Approaches and the Expert’s Role in Each, presented to 53 attendees.
CBV mentor Steven Hacker
CBV mentor Amanda Salvatori
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New BC CBVs with CICBV Board Vice-Chair Eleanor Joy, CBV (far right) and Director Andy Shaw, CBV (far left).
New Ontario CBVs with CICBV Board Chair Farley Cohen, CBV (top right) and CICBV President & CEO Jeannine Brooks (bottom left).
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Webinars Each of the below webinars has been recorded and archived, and is available for purchase online.
• January 18, 2011: Finding and Analyzing Royalty Rates by David Jarczwk.
• February 8, 2011: Economic Outlook by Helmut Pastrick.
• March 9, 2011: Valuation in the Current Economic Environment by CBVs Bill Farrell and Chris Ferrara.
Interested in presenting?
Are you a subject matter expert? If so, we’d love to hear from you. We welcome proposals for webinar topics that would be of interest to other Members and Students. Presenting is easy – you can do it right from your own office; CICBV staff will walk you through a demo ahead of time and provide technical and administrative support during your webinar. Please contact us if you are interested in becoming a presenter, or finding out more details.
Announcements, Appearances and AccoladesNovember 25, 2010: CBV Anish Chopra, Portfolio Manager at TD Asset Management, spoke at the CICA 2010 IFRS Conference for Financial Statement Users on Next Steps – Advice from Portfolio Managers and Investor Relations Professionals.
March 8, 2011: Anish Chopra was a speaker at University of Waterloo’s Investment and Portfo-lio Management Post-Crisis Roundtable.
Anish also appears in TD Waterhouse videos on YouTube, in conversation with Patricia Lovett-Reid on investment management: Part 1 / Part 2.
Are you participating in an event, donating your time to a good cause, or have some news to share?Please let us know — we would like to mention you or your event in the Newsletter. Contact Communications Manager, Jennifer Warlow at [email protected].
Writer’s Edge By Ingrid SaponaWelcome to Writer’s Edge — a column by Ingrid Sapona, owner of Good with Words. In her col-umn, Ingrid will write about ways of improving your communication skills. Many of you already know Ingrid — she’s been working with the CICBV and CBVs for more than 10 years and is the creator and presenter of the popular seminar: Valuation Reports and Opinions: Your Stock In Trade — Are they as clear as can be?
Ingrid welcomes your feedback, questions, and suggestions for topics you’d be interested in reading about. Drop Ingrid a line at: [email protected], or call 416-259-3399.
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Pesky PrepositionsPrepositions show relationships between other words. Prepositions show location, direction, time, and relationship. In the sentences below the words in bold are prepositions:
The annual general meeting concluded at noon.
The trial was moved across the hall.
The news travelled through the office quickly.
The proxy must be sent with the meeting notice.
The object of the preposition is normally a noun or pronoun that follows the preposition. The preposition and the object together are called a prepositional phrase.
Preposition PlacementBecause prepositional phrases modify other words in the sentence, it is important that it is clear to the reader what the prepositional phrase modifies. Consider this sentence:
Pat valued the business with her partner.
It’s not clear whether Pat and her partner worked together on a valuation of the business, or whether the business Pat valued was something she is engaged in with her partner. If she worked with her partner on the valuation, then it would be clearer to write: With her partner, Pat valued the business. If she valued a business the two are in together, then it’s best to add words to clarify the situation — something like: Pat valued the business she and her partner are in together.
Before moving on, a brief word about the “rule” that you shouldn’t end a sentence with a prepo-sition. The modern view is that so long as the sentence makes sense, it’s fine to end with a preposition.
Preposition ChoiceChoosing the wrong preposition can have a profound impact on the meaning, or even render a sentence meaningless. Consider the following:
(A) The offer is available through May.
(B) The offer is available to May.
If someone made the offer in (A), could you accept it on, say, May 10? Yes, because through means until the end of May. Could you wait until May 10 to accept offer (B)? No, because to means until May.
(C) The experts argued about the value.
(D) The experts argued to the value.
The only difference between sentence (C) and (D) is the preposition, yet sentence (D) makes no sense. You argue with someone, or about, against, over, or for something — you don’t argue to something.
ConclusionChoosing the wrong preposition is a usage problem, just like choosing an imprecise or wrong word. Reference lists of word pairings (call collocations) can be found but, just as you’d only turn to a dictionary if you’re in doubt about the precise meaning or spelling of a word, unless you have reason to wonder whether a particular preposition is correct, you won’t refer to a collocation.
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I do have some suggestions to increase the chances of choosing the proper preposition. First, read your writing out loud. When reading silently your eyes often pass quickly over prepositions, as your brain tries to make sense of the sentence as a whole. When you read aloud, however, you hear every word and incorrect prepositions often stand out because they sound wrong.
My other advice is to remember that the function of a preposition is to show relationships, so ask yourself:
(1) Does the preposition you’ve chosen show a relationship?
(2) Does it express the relationship you intended?
For example, in (D) the preposition does not show a relationship at all. And, as between the prepositions in (A) and (B), if you meant for the offer to end on April 30, then through is the wrong preposition.
Advertisements(please see the following pages)
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This course is not affiliated with the Canadian Institute of Chartered Business Valuators, KPMG LLP or Teekay Corporation.
This course is not affiliated with the Canadian Institute of Chartered Business Valuators, KPMG LLP or Teekay Corporation.
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dates: City Date Cost winnipeg, mb july 16/17, 2011 (Sat/Sun) $1,400 plus GST (5%) and PST (7%) vancouver, bc july 23/24, 2011 (Sat/Sun) $1,400 plus HST (12%) toronto, on august 13/14, 2011 (Sat/Sun) $1,400 plus HST (13%) calgary, ab august 20/21, 2011 (Sat/Sun) $1,400 plus GST (5%) The 2011 MEE is scheduled for Monday, September 19, 2011.
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instructor profiles: keith jensen, CA, CBV, MBA Keith is a Senior Manager in KPMG LLP’s Valuation practice and was the 2006 MEE Gold Medalist. He has extensive teaching experience including UFE preparatory programs for the CA School of Business and KPMG. Keith also teaches the Business Valuation course for the MBA program at the Queens School of Business. brody speers, CA, CBV Brody is a Manager of Strategic Development at Teekay Corporation, one of the largest shipping companies in the world. Brody was the Gold Medalist on the 2010 MEE. He has developed effective writing techniques and strategies that will assist candidates from both industry and public practice backgrounds.
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This is a paid advertisement. The CICBV is neither affiliated with, nor endorses, this program.
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Calgary Intensive – Two-day seminar – Saturday/Sunday, July 23 - 24 Intensive – Three-day seminar – Saturday-Monday, July 23 - 25
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Guarantee: If you are unsuccessful, you may attend any future course offering for $495. Instructors Melanie Russell CA∗CBV, CFE, CIM, TEP was a CICBV Silver Medalist, and has been involved with preparing, marking, instructing and counseling for the MEE since 1991. She has also taught at various educational and professional institutions (York University of Toronto, ICAO, CICA). Melanie practices as a full-time professional business valuator. Harry Figov CA∗CBV, MBA, CPA, CFA, CFP provides preparatory educational seminars to the financial services industry for candidates enrolled in the CBV and CFA® programs. He serves as a marker for the MEE exam and an instructor for the “Advanced Business & Securities Valuation” course and teaches in the MBA Programs at Concordia University and Wilfred Laurier University. Harry practices as a professional business valuator.
