At Unbroker, we understand the importance of business valuation credentials in today’s competitive market.
These certifications not only validate your expertise but also open doors to lucrative career opportunities in the field.
In this post, we’ll guide you through the process of obtaining various business valuation credentials and compare some of the most popular options available.
Whether you’re just starting out or looking to advance your career, this information will help you make an informed decision about your professional development path.
What Are Business Valuation Credentials?
Business valuation credentials are professional certifications that prove expertise in determining the economic value of businesses. These credentials play a vital role in today’s market, where accurate valuations can significantly impact deals worth millions of dollars.
Types of Business Valuation Credentials
The industry recognizes several credentials, including:
- Certified Valuation Analyst (CVA)
- Accredited in Business Valuation (ABV)
- Accredited Senior Appraiser (ASA)
Each certification requires a combination of education, experience, and passing a rigorous exam. For instance, the CVA credential (offered by the National Association of Certified Valuators and Analysts) requires candidates to have a four-year college degree and the combined equivalent of two years of full-time experience in business valuation.
The Importance of Credentials
Credentials are not mere certificates; they serve as proof of your expertise and commitment to the field. A recent survey found that few small business owners knew their business valuation, highlighting the importance of understanding a company’s dollar value.
Career Opportunities for Credentialed Professionals
Obtaining a business valuation credential can significantly enhance your career prospects. The Bureau of Labor Statistics projects the demand for financial analysts (including business valuation specialists) to grow 9% from 2023 to 2033, much faster than the average for all occupations.
Credentialed professionals often find opportunities in:
- Investment banks
- Accounting firms
- Consultancies
Many also choose to start their own valuation practices, leveraging their expertise and credentials to build successful businesses.
The Role of Credentials in Business Transactions
Accurate valuations are critical in various business transactions, from mergers and acquisitions to estate planning. While platforms like Unbroker focus on facilitating business sales, they often recommend that clients work with credentialed professionals to ensure the most accurate assessment of their business’s worth. This approach aligns with a commitment to transparency and fairness in the business sale process.
As we move forward, let’s explore the specific steps required to obtain these valuable business valuation credentials and how they can propel your career to new heights.
How to Obtain Business Valuation Credentials
Educational Foundation
Most credentialing bodies require a bachelor’s degree as a minimum educational requirement. The specific field of study is often flexible. The National Association of Certified Valuators and Analysts (NACVA) requires a four-year college degree and a minimum of two years of full-time experience in business for their Certified Valuation Analyst (CVA) credential. Some organizations may waive the degree requirement for candidates with extensive professional experience.
Examination Process
The examination process forms a critical component of obtaining your credential. The American Society of Appraisers (ASA) outlines detailed information on prerequisites, the application process, and application requirements in their ARM Guide to Professional Accreditation for their Accredited Senior Appraiser (ASA) designation. To prepare, you should enroll in specialized training courses offered by the credentialing organizations. These courses often cover valuation theory, methodologies, and case studies.
Practical Experience Requirements
Hands-on experience plays a crucial role in the credentialing process. Most organizations require a certain number of hours or years of practical valuation experience. To gain this experience, you should seek internships or entry-level positions at valuation firms, accounting practices, or investment banks. You might also find opportunities to assist with valuation projects within your current organization.
Ongoing Education and Recertification
Obtaining your credential marks just the beginning of your journey. To maintain it, you must engage in continuous learning and periodic recertification. The Canadian Institute of Chartered Business Valuators (CICBV) requires its members to complete a university degree, the CBV Program of Studies, a Membership Qualification Exam (MQE), and gain business valuation experience to obtain their Chartered Business Valuator (CBV) designation.
You should stay current with industry trends by attending conferences, participating in webinars, and reading industry publications. Many credentialing bodies offer their own continuing education programs, which can serve as an excellent way to fulfill requirements while networking with peers.
The path to obtaining business valuation credentials challenges professionals, but the rewards prove substantial. These credentials not only enhance your professional standing but also open doors to exciting career opportunities in a growing field. As you consider which credential to pursue, it’s important to understand the nuances of each option. Let’s explore some of the most popular business valuation credentials in the next section.
Which Business Valuation Credential Should You Choose?
Accredited in Business Valuation (ABV)
The American Institute of Certified Public Accountants (AICPA) offers the ABV credential. This certification targets CPAs who want to specialize in business valuation. The ABV credential positions you as a premier valuation provider with expertise in the valuation of businesses.
Certified Valuation Analyst (CVA)
The National Association of Certified Valuators and Analysts (NACVA) provides the CVA credential. This certification welcomes both CPAs and non-CPAs with a business degree. Requirements include:
- A four-year college degree
- The combined equivalent of two years of full-time experience in business valuation
- Passing a comprehensive exam
CVAs often find roles in valuation firms, investment banks, and corporate finance departments.
Accredited Senior Appraiser (ASA)
The American Society of Appraisers (ASA) offers the ASA credential, which holds high regard in the industry. To obtain this certification, you must:
- Have a college degree or equivalent
- Complete 10,000 hours of appraisal experience
- Pass several exams
ASAs work across various sectors, including real estate, business valuation, and personal property appraisal.
Chartered Business Valuator (CBV)
The Canadian Institute of Chartered Business Valuators offers the CBV credential, which receives global recognition. To earn this certification, you must:
- Complete specific courses
- Pass a rigorous exam
- Accumulate 1,500 hours of business valuation experience
CBVs often work in corporate finance, mergers and acquisitions, and litigation support.
Factors to Consider When Choosing a Credential
Your career goals, educational background, and time commitment should guide your choice. The ABV might suit CPAs looking to specialize, while the CVA offers a broader entry point. The ASA demands significant experience but provides comprehensive recognition. The CBV, while based in Canada, offers international opportunities.
These credentials demonstrate your expertise and commitment to the field. They can lead to higher salaries and more diverse career opportunities. A 2022 survey by Business Valuation Resources found that BV firms do not appear to pay a premium for Level 2 employees with a graduate degree as opposed to those without.
Final Thoughts
Business valuation credentials have become essential in today’s competitive financial landscape. These certifications validate your expertise and open doors to lucrative career opportunities in the field. When choosing a credential, you should consider your career goals, educational background, and the time you can commit to the process.
The future outlook for the business valuation profession looks promising. The demand for skilled professionals will likely rise as businesses navigate complex financial landscapes and seek expert guidance in determining their worth. These certifications will remain a valuable asset, positioning you as a trusted expert in the ever-changing landscape of business valuation.
At Unbroker, we recognize the value of expertise in business valuations. We often recommend that our clients work with credentialed professionals to ensure the most accurate assessment of their business’s worth. This approach aligns with our commitment to transparency and fairness in the business sale process.
