The valuation of closely held businesses has greatly matured over the years. Valuation standards have been developed by various professional organizations and there are a multitude of individuals performing valuations for closely held businesses. The valuation report you will review will most likely have been prepared using some professional standards. The following organizations provide professional standards:

    The American Institute of Certified Public Accountants (AICPA)
    American Society of Appraisers (ASA)
    The Institute of Business Appraisers (IBA)
    The National Association of Certified Valuation Analysts (NACVA)
    The Canadian Institute of Chartered Business Valuators (CICBV)

    The purpose of this Statement on Management Accounting (SMA) is to familiarize the reader with the methodologies in a valuation report and to enable the reader to perform valuation calculations.