A certified valuation analyst determines the value of a business, and becoming certified can make one a more attractive job candidate. Requirements include passing a two-part proficiency exam, completing a case study, and potentially becoming a certified public accountant. Preparation courses are available.
A valuation analyst is a professional capable of determining the value of a business. Factors included in a business valuation are financial assets, profitability, reputation, customer list, business models, and suppliers and vendors. While an individual does not need to be certified in many areas to become a certified valuation analyst, getting certified can make you a much more attractive job candidate and can also help you land more clients. To become a certified valuation analyst, it can be helpful to first determine what qualifications you need before applying and preparing for the required proficiency exams.
To become a certified valuation analyst, you may first need to become a certified public accountant (CPA). A CPA is an accounting professional who is able to gather and organize financial documents so that managers can create business strategies and financial analysts can conduct audits. Typically, an undergraduate degree in accounting and a satisfactory score on a proficiency exam are required to become a CPA. In some cases, an aspiring CPA may be required to take graduate courses.
Some organizations may require an individual who wants to become a certified valuation analyst to complete a case study before taking the proficiency exam. This step lets employees see that you understand the basics of business valuation. Candidates who are already practicing as valuation specialists are given the opportunity to produce a report on an operating company. In most cases, these reports must have been completed within the last year.
A passing score on a two-part proficiency exam is generally required to become a certified valuation analyst. The first part is a multiple choice test. This section tests a professional’s general knowledge related to business valuation. In some cases, individuals can take this exam after a training day.
The second section of the proficiency exam is a take-home test. This part is intended to reflect the actual business valuation act. For this reason, participants can spend anywhere from 40 to 60 hours on the test. If you fail the test the first time, you will be given the opportunity to retake it, usually at a reduced price.
Professionals who have practiced business valuation may have an easier time taking the exam than those who have not had experience in this field. If you think you have a lot of preparation to do to become a certified valuation analyst, you might want to take some preparation courses. They can be obtained in conventional classroom settings or in the form of online tutorials.
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