Broker Opinion of Value (BOV)

A Broker Opinion of Value (BOV) — sometimes called a Business Price Opinion (BPO) in brokerage contexts — is an informal, non-certified estimate of a business's likely sale price, prepared by a business broker or M&A advisor rather than a chartered business valuator (CBV). A BOV is typically based on comparable transactions, normalized EBITDA multiples, and the broker's market experience rather than a formal valuation methodology.

BOVs are inexpensive (typically $500–$3,000 or sometimes provided free as part of a listing discussion), quick to produce, and practical as a first data point for a seller considering whether to go to market. Their limitations are significant: they are not independent (the preparing broker typically wants the listing mandate), they reflect market conditions at a point in time, and they carry no professional liability. A buyer cannot rely on a BOV prepared for the seller, and institutional buyers and lenders will not accept a BOV as a substitute for a formal valuation.

The primary alternative is a formal valuation prepared by a CBV under the Canadian Institute of Chartered Business Valuators (CICBV) Practice Standards, which typically costs $5,000–$25,000 depending on complexity. A formal CBV valuation is required in certain circumstances — tax-driven share transfers, estate disputes, divorce proceedings, and some lender requirements — where an independent, defensible opinion of fair market value is needed. Many sellers obtain a BOV first, then commission a formal CBV valuation once they decide to proceed.

See also: Business Valuation, CBV, Fair Market Value, EBITDA Multiple.