Accredited in Business Valuation (ABV)

A credential given to accountants who possess a considerable level of knowledge in valuation and the relevant professional standards

What is Accredited in Business Valuation (ABV)?

Accredited in Business Valuation (ABV) is a credential given to accountants who possess a considerable level of knowledge in valuation and the professional standards that surround it. It is granted through the administration and successful passing of a two-part exam and by obtaining relevant work experience. Generally, individuals carrying the ABV designation are Certified Public Accountants (CPAs) who specialize in calculating the value of a business through various types of analysis.

 

Accredited in Business Valuation

 

In order to qualify, they must possess business valuation experience and pay a fee. For non-CPA members, a minimum of 1,500 hours of valuation experience is required; however, CPAs only require 150 hours.

The requirements are rigorous but help to strengthen the quality of the designation and signal to employers a professional’s commitment to the field of valuation.

 

Areas of Study in the Accredited in Business Valuation Designation

  1. Quantitative analysis
  2. Qualitative analysis
  3. Business valuation
  4. Ethical and professional standards
  5. Business analysis


Obtaining the ABV: When it is Right for your Career

The ABV designation can strategically help certain accountants grow their career or position themselves for different types of employment. If the job is client-facing, it can allow an individual to demonstrate to their clients that they possess expertise and reliability within the field of valuing businesses.

For example, if an individual were to be employed to work on a merger or acquisition transaction for a company, being able to accurately value a potential acquisition target can prove incredibly valuable to an employer. The ABV designation can also help give the individual a competitive advantage over other accountants applying at large accounting firms or other applicants to an investment bank or large tech company.

The designation can also help make an individual a better entrepreneur, as they can better analyze and audit their own business – evaluating and grading their successes against competitors or potential acquirers.

 

Skipping the ABV Exam Requirements

It is also possible to skip the ABV exam and obtain the credential if an individual is an accredited holder of any of the certifications below:

  1. Chartered Financial Analyst (CFA®)
  2. American Society of Appraisers (ASA)
  3. Chartered Business Valuator (CBV)

 

Why the ABV Designation

Holders of the ABV credential can further demonstrate their expertise in evaluating businesses by obtaining the designation and immerse themselves in the world of valuation. It opens the doors to new types of firms that one can be employed at, where they can further exemplify a skill set that financial, accounting, and technology firms look for.

Like any credential, the ABV requires considerable time and effort to obtain. Professional designations, such as the ABV and the ones offered at Corporate Finance Institute, can help a professional develop their strength in order to grow their career and make them a better version of themselves.

 

In Summary: The ABV and the Accountant

  • Accredited in Business Valuation (ABV) is a credential given to accountants who already obtained (1) a considerable level of knowledge in valuation and (2) the professional standards that surround it.
  • For non-CPA members, a minimum of 1,500 valuation experience hours is required; however, CPAs only need 150 hours. It is paired well with other designations that can give you a work exemption like the CFA®, ASA, and CBV.
  • The ABV can strategically help certain accountants grow their career or position themselves for different types of employment – in effect making them a better and more marketable professional.

 

Additional Resources

CFI offers the Certified Banking & Credit Analyst (CBCA)™ certification program for those looking to take their careers to the next level. To keep learning and developing your knowledge base, please explore the additional relevant resources below:

  • Accounting Salary Guide
  • Business Valuation Specialist
  • CPA vs CFA®
  • Valuation Methods

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