A valuation analyst is a professional who can assess the worth of a company. Financial assets, profitability, reputation, client list, business models, and suppliers and vendors are all factors in a business valuation. While certification in many areas is not required to become a certified valuation analyst, having earned certification can make you a much more appealing job candidate and help you gain more clients. Before applying for a position as a certified valuation analyst, it’s a good idea to figure out what qualifications you’ll need and study for the required proficiency exams.
You may need to become a Certified Public Accountant before becoming a certified valuation analyst (CPA). A CPA is an accountant who can gather and organize financial documents to help managers develop business strategies and financial analysts conduct audits. To become a CPA, you usually need an undergraduate degree in accounting and a passing score on a proficiency exam. An aspiring CPA may be required to take post-graduate courses in some cases.
Before taking the proficiency exam, some organizations may require that someone who wants to become a certified valuation analyst complete a case study. This step demonstrates to officials that you understand the fundamentals of business appraisal. Applicants who are already practicing as valuation experts have the option of producing a report on a running business instead. These reports must have been completed within the last year in most cases.
To become a certified valuation analyst, you usually need to pass a two-part proficiency exam. The first section consists of a multiple-choice test. This section assesses a professional’s overall understanding of business valuation. Individuals may be able to take this exam after a single day of training in some cases.
The proficiency exam’s second section is a take-home test. This section is meant to resemble the process of valuing a business in real life. As a result, test takers may be advised to devote between 40 and 60 hours to the exam. If you fail the test the first time, you have the option of retaking it at a reduced cost.
Professionals who have worked in the field of business valuation may have an easier time passing the exam than those who have not. If you believe you will need a lot of preparation to become a certified valuation analyst, you may want to enroll in some preparation courses. These can be completed in a traditional classroom setting or through online tutorials.