How to Become a Business Valuator

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How to Become a Business Valuator: Career Path Guide

Are you interested in finance, accounting and/or economics? Does the idea of a well-paying career that involves working with models (…financial) appeal to you? If so, a career as a business valuator is worth considering. Here are some quick highlights of working in this field:

 

• High level of average pay

• Opportunity to apply skills in valuation theory and financial modeling

• Officer-based work that may involve travel

• Detail-oriented and analytical work

 

If you want to know more about the ins and outs of this career, then read on; we’ll fill you in on the details, including an overview of what these valuation professionals do, how much they can earn, and what you’ll need to qualify!

 

 

Educational Requirements

Employers generally require that you have a bachelor's degree in accounting, finance, economics or a closely related field, although many employers prefer that you have an advanced/post-graduate degree.

 

 

 

Business Valuator Job Description

A business valuator is responsible for performing valuations of business entities, intellectual property, intangible assets, common and preferred stock and other securities, private debt instruments, options, warrants and other derivative products.

 

They provides these services to assist clients with mergers, acquisitions and dispositions, taxation planning and compliance, succession, litigation and dispute resolution, bankruptcy and restructuring as well as strategic planning.

 

 

Business Valuator Job Duties

• Communicate understanding of risk associated with various actions such as acquisitions and mergers

• Assist in reviews of third party appraisals for audit support purposes

• Assist in drafting reports and findings

• Create financial models based on business issues or transactions that are being analyzed

• Prepare valuation reports and presentations

• Brief client on findings and deal with any concerns that may arise

• Assist in researching technical and industry specific issues

• Develop strong relationships with attorneys, accountants and fiduciaries

 

 

Experience Needed to Become a Business Valuator

Employers generally prefer to hire candidates with 1-3 years of work experience in a financial/investment/accounting environment.

 

Success Tip: Many job postings will state that experience is preferred. If you do not have in-field experience yet, and all of the jobs you’re looking at say that you need relevant experience, you can still be hired if you are the best available candidate!

 

 

Certification Needed to Become a Business Valuator

You are typically not required to hold certification in order to work as a business valuator. Some employers however, may prefer to hire candidates who hold various credentials.

 

Relevant credentials may include professional designations in accounting, finance and/or litigation support. There are also various valuation-specific credentials that you can earn, which we will outline below:

 

Valuation Credentials in Canada: The Canadian Institute of Chartered Business Valuators (CICBV) is considered the pre-eminent business valuation organization in Canada. They offer the Chartered Business Valuator credential (CBV).

 

Valuation Credentials in the United States: The National Association of Certified Valuators and Analysts (NACVA) offers a variety of accreditations, such as the Certified Valuation Analyst (CVA) accreditation.

 

Success Tip: While having certification is not mandatory to work is this field, it is highly recommended for the purpose of career advancement. Being certified will inspire confidence in potential employers and clients, and may also qualify you for a higher level of pay.

 

 

Skills Needed to Become a Business Valuator

In order to effectively perform the duties of a business valuator, you will need the following skills:

 

• A solid understanding of valuation theory and application

• The ability to work on multiple engagements simultaneously

• Strong skills in research, writing, presentation, and general accounting and finance

• Strong skills with office software, including Microsoft Excel, Word, Access, and PowerPoint

• Strong proficiency with research of companies, industries, and economic conditions

 

 

 

Personal Characteristics and Interests

To become successful and fulfilled in a career as a business valuator, you need to have certain personal characteristics, and certain professional interests. These attributes will ensure you have a positive attitude towards your work, and that you are able to enjoy the highs, and endure the lows, of your career:

 

• Enjoy detail-oriented and analytical work

• Positive attitude and a strong work ethic

• Demonstrated leadership and strong personal integrity

• Enjoy managing rapidly changing assignments

• Enjoy working in a team environment

• Enjoy working with and creating financial models

• Commitment to obtaining outstanding results

• Interest in an office-based career that involves meeting with stakeholders and traveling  

• Interest in working with related professionals such as accountants, lawyers and fiduciaries

 

 

Who Employs Business Valuators?

Business valuators are typically employed by the following types of organizations:

 

• Accounting firms

• Business valuation consulting firms

• Law firms

• Management consulting firms

 

 

Business Valuator Salary

The amount you could earn as a business valuator is dependent on many different factors, including:

 

• Your level of education

• Your level of experience

• The region in which you work

• The size and type of your employer

• Many other factors

 

Business Valuator Salary - Alberta: According to the 2013 Alberta Wage and Salary Survey, Albertans working in the Assessors, Valuators and Appraisers occupational group earn an average salary of $82,628 per year.

 

Business Valuator Salary - Canada: According to Service Canada, the average salary level of Canadian workers in the Assessors, Valuators and Appraisers occupational group is $54,600 per year.

 

Business Valuator Salary - United States: According to the United States Bureau of Labor Statistics, the median salary level of American workers in the Financial Analysts occupational group* is $76,950 per year, while that of workers in the Appraisers and Assessors of Real Estate is $49,540 per year.

 

*There is no American salary information available for this specialized profession. We can however, get a good idea of what business valuators earn by looking at the salary of workers in closely related professions.

 

 

Business Valuator Jobs

Our job board below has "Business Valuator" postings in Canada, the United States, the United Kingdom and Australia.

Working Conditions for Business Valuators

Working Hours: Business valuators often work normal weekday working hours, although evenings and weekends (like many other professions) may be needed to meet deadlines, and to meet with clients and other stakeholders.

 

Setting: Business valuators spend much of their time in an office setting, performing analysis, making presentations or attending meetings. They may have to travel on occasion, locally or otherwise, to meet with clients and other stakeholders. 

 

 

Occupations Similar to Business Valuator

Listed below are professions in our database that are similar in nature to Business Valuator, as they may be in the same field, or they may involve many of the same skills, competencies and/or responsibilities:

 

• Appraiser

• Commercial Realtor

• Financial Analyst

• Investment Analyst

• Real Estate Appraiser

Stockbroker

 

 

References

Please consult the following resources to learn more about a career as a business valuator:

 

Alberta Learning and Information Service website: alis.alberta.ca

Chartered Business valuators website: cicbv.ca

National Association of Certified Valuators and Analysts website: www.nacva.com

United States Bureau of Labor Statistics website - Appraisers and Assessors of Real Estate: www.bls.gov

United States Bureau of Labor Statistics website - Financial Analysts: www.bls.gov

 

 

Scholarships for Becoming a Business Valuator

The Applicable Majors section below shows fields of study relevant to a career as a Business Valuator. You can search for scholarships matched to those fields of study on the following pages:

 

Accounting Scholarships

Economics Scholarships

Finance Scholarships

 

Success Tip: Be sure to apply for any scholarships that you even barely qualify for, as there are millions of dollars of scholarships that go unused every year due to a lack of applicants!

 

 

Becoming a Business Valuator: Applicable Majors

Studying one of the university majors listed below is an excellent starting point for becoming a Business Valuator. Click on the links to find out what else you can do with these majors!

 


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