Your accountant tells you your business is worth $2 million. An M&A broker positions it at $2.8 million. Both are right. They’re not answering the same question.
Three professionals, three mandates
When it’s time to value a business, three types of professionals come into play: the Chartered Business Valuator (CBV), the CPA and the M&A broker.
Many owners think they do the same thing. They don’t — and the confusion can lead to bad decisions.
The fundamental distinction:
- An accounting valuation (or formal valuation) gives fair market value — a theoretical number, based on standardized assumptions, in a static report.
- A market valuation gives what a buyer is actually willing to pay — a dynamic number, tested in a competitive process with real buyers.
Both are valid. But they don’t serve the same purpose.
Understanding the difference is the first step in deciding who to trust with the valuation of a Quebec SME worth $3 million or more.
The Chartered Business Valuator (CBV)
The CBV is an accredited professional whose mandate is to produce a formal fair market value report.
Their work: apply recognized valuation methods — DCF, comparable transactions, net asset value — under strict professional standards, and deliver a signed report that can be filed before a court or a tax authority.
When to choose one
A CBV is the right choice when you need an independent, formal opinion:
- shareholder dispute
- shareholder agreement (shotgun clause, right of first refusal)
- tax planning or estate freeze
- divorce or separation of assets
- challenge with the revenue agency
What they don’t do
A CBV doesn’t look for buyers. They don’t negotiate. They don’t run a sale process.
Their report gives a number that’s defensible on paper — not a price the market has validated.
The cost of a formal valuation varies with complexity, but generally runs from $5,000 to $25,000 or more for complex files.
The CPA / accountant
The CPA is an essential teammate in any transaction — but their role isn’t to value the business in market terms.
What they do
- Prepare and validate financial statements
- Calculate and normalize EBITDA
- Support the due diligence process
- Advise on the tax implications of the transaction (share sale vs asset sale)
The CPA is present in every engagement we guide. They’re a teammate, not a competitor.
What they don’t do
CPAs generally don’t perform market valuations. They don’t run a competitive process. They don’t source or qualify buyers.
A CPA can give a rough order of magnitude based on the financial statements — but that number doesn’t reflect what the market is willing to pay in a real transaction.
The M&A broker
The M&A broker does what the other two don’t: they bring the business to market.
Market valuation
Unlike a formal valuation, a market valuation doesn’t rest on standardized assumptions alone.
It integrates:
- investment banking methods (DCF, comparables, acquisition model) calibrated against real multiples observed by industry in Quebec
- knowledge of active buyers in the sector
- the real financing capacity of the market
- the dynamics of a competitive process
In the Quebec SME engagements we guide on the sell-side, we regularly see a gap between the formal valuation and what the market validates. The formal valuation gives a reasonable number. A competitive process — with several qualified buyers at the table — can go further.
The full process
Beyond the valuation, a business broker takes on:
- preparing the sale package (confidential information memorandum)
- sourcing and qualifying buyers
- running the competitive process
- negotiating price and terms
- coordinating due diligence
- guiding the deal through to closing
It’s a mandate of several months — often hundreds of hours of work — paid through a transaction commission.
To see how this process works in practice, RCA has documented every step.
At a glance
| Chartered Business Valuator (CBV) | CPA / Accountant | M&A broker | |
|---|---|---|---|
| What they do | Formal FMV report | Financial statements, EBITDA, tax support | Market valuation, full sale |
| When to choose | Dispute, shareholder agreement, tax | Always — part of the transaction team | Actual sale of the business |
| Type of valuation | Static, standard assumptions | EBITDA calculation, order of magnitude | Dynamic, tested by the market |
| Buyer sourcing | No | No | Yes |
| Negotiation and closing | No | Tax support | Yes — full mandate |
| Typical cost | $5,000 – $25,000+ | Standard professional fees | Transaction commission |
Who to choose for your situation
The answer depends on your objective.
You’re in a dispute, shareholder agreement or tax planning situation? → A CBV is the right choice. You need a formal, independent, defensible report.
You’re preparing an actual sale of your business? → A business broker based in Montreal, with a CPA on the team. The broker runs the process and the market valuation, often under a model paid 100% at closing. The CPA prepares the numbers, supports due diligence and advises on tax structure.
You just want to know the value without selling right away? → A CBV or a specialized CPA can give you a first frame. But keep in mind that this number is an estimate on paper — not a market price.
The message isn’t “one professional is better than another.” It’s: the right professional for the right mandate.
If you’re thinking about selling and you want to understand what the market would say, a confidential valuation is a good place to start.
Key takeaways:
- A CBV delivers a formal fair market value — essential for disputes, shareholder agreements and tax matters
- A CPA is a transaction teammate — not a market valuator, but indispensable on the team
- An M&A broker delivers a market valuation — tested through a competitive process with real buyers
- The right question isn't "who's best" — it's "which mandate do I need to hand off"
