A valuations analyst provides valuation services for public and private companies. They typically focus on the identification and valuation of intangible assets and, more specifically, with goodwill impairment and purchase price allocation (PPA). A career as an analyst on the valuations team can require significant financial modeling and analysis.
The personality of someone suited to work in the valuation services division of an accounting firm typically has the following character traits:
Highly ambitious/driven to succeed
Excellent accounting skills
Attention to detail
Organized, structured, and detailed
Ability to work long hours
Interview prep requires have a very good understanding of accounting and financial modeling. We recommend using our accounting interview guide in conjunction with our investment banking interview guide to round out the financial modelling and valuation questions that may arise. If you’ve applied to be an analyst, you should read all of our above interview guides.
There are various entry points into the valuation services groups at accounting firms. Some enter straight out of school, others move into the group from another division in the firm. The Audit Group is the most common place to start. Then, after becoming a Senior Accountant, you can typically become a valuations analyst or manager.
An analyst or manager in the valuations group has several options: they can move up within the group and have a very rewarding career, they can move into another group in the accounting firm such as audit, or they can move to the corporate side.
Below is a guideline of how much you can earn in valuations. It should be noted that there can be a wide range based on the accounting firm, the year, and the city you’re working in.
Analyst: $60,000 to $90,000 (base salary plus bonus)
Manager: $90,000 – $150,000 (base salary plus bonus)
Director/VP: $150 – $300,000 (base salary plus bonus)
Partner: $300,000 – $1 million+ (including equity)
It’s important to start with a solid understanding of accounting fundamentals. Next you should have a solid Excel crash course under your belt, which will teach you the basics including shortcuts, formulas and functions. From there you can progress to financial modeling courses, which will be required for your day to day work. By taking a several different courses you’ll learn about various industries and see different types of model.