Business valuations help determine a company's economic value. They often involve a complete analysis of many different factors, including financial performance, market conditions, assets, liabilities, and future earnings potential. Accurate business valuations can impact a variety of business decisions, such as securing financing, negotiating sales, or planning strategic growth. A precise valuation, for example, can facilitate a successful sale by providing a fair and objective assessment of the business's worth. 

Choosing the right professional for your business valuation is essential for ensuring accuracy and making informed decisions. Different professions bring different expertise to the valuation process, and by understanding their qualifications and roles, you can select the best expert to meet their valuation needs. 

Professionals Who Perform Business Valuations

Several types of professionals are qualified to perform business valuations, each bringing specific expertise and credentials.

Certified Valuation Analysts (CVAs)

Certified Valuation Analysts are accredited by the National Association of Certified Valuators and Analysts (NACVA). It requires rigorous training and examination that emphasizes practical experience. CVAs can handle various valuation assignments, from small businesses to large corporations. 

Chartered Financial Analysts (CFAs)

Chartered financial analysts are experts in investment management and financial analysis. The CFA Institute awards this certification which signifies a high degree of competence and ethical standards. CFAs often perform valuations for potential acquisitions or investment opportunities. 

Certified Public Accountants (CPAs)

CPAs are licensed professionals with extensive knowledge in accounting and finance. They often perform valuations, especially when you need a detailed financial analysis and when there are tax considerations. While the requirements to become a CPA vary from state to state, most will have had to pass a rigorous examination and meet continuing education requirements to maintain their certification. 

Accredited in Business Valuation (ABV)

This credential is offered by the American Institute of CPAs (AICPA) and is specifically for CPAs who specialize in business valuations. Accreditation requires CPAs to undergo additional education and pass a specialized exam, ensuring that ABVs have the expertise to conduct complex valuations. 

Business Appraisers (ASA)

This accreditation is given by the American Society of Appraisers (ASA). ASAs are experts in valuing businesses and other assets. The ASA designation involves comprehensive education, testing, and peer review. This ensures that appraisers adhere to the highest standards of professionalism and accuracy. 

Selecting the Right Professional for Your Business Valuation

When looking for the right professional for your business valuation, you want to ensure they have the relevant certifications. You also want to ensure they have a solid educational background in finance, accounting, or business. Advanced degrees like an MBA or a master’s in finance can also be a plus. 

Valuation methods can vary from industry to industry. That means you’ll want to look for professionals who have experience in your specific industry. Their industry-specific knowledge can be critical for understanding market dynamics and for accurately assessing your business’s value. Along similar lines, you want to make sure they use appropriate and recognized valuation methods. The choice of valuation method should align with your business type and valuation purpose. 

It is crucial to get an unbiased and objective valuation. When hiring a valuation professional, you need to ensure there are no potential conflicts of interest. You also need to verify that they adhere to high ethical standards. Membership in professional organizations like the AICPA or the CFA Institute often requires that members follow strict ethical guidelines.

There’s no substitute for experience. Reviewing past valuations and client testimonials helps you determine if it is a good fit. A proven track record of successful valuations and satisfied clients is a good indicator of reliability.   

Proven Business Valuators

SHG provides our clients expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first. 

Your business is your most valuable asset. SHG helps you determine and maximize that value. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value.

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