Performing a business valuation is a complex task. It can require 40 hours with no work experience to approximately 132 hours of training with 10,000 hours of work experience to obtain a business valuation credential. Obviously the 132 hour training program is more in-depth and rigorous.
Business Valuation Certifications
The intent of these types of training programs is to teach a candidate how to perform a business valuation.
Some of the topics that need to be mastered are: (1) business valuation fundamentals, techniques and theory, (2) Asset Approach and Methods, (3) Market Approach and Methods, (4) Income Approach and Methods, (5) industry analysis, (6) economic analysis (7) financial theory, (8) marketability and minority interest discounts, etc.
Modifications by Untrained Individual
Assume I have prepared a business valuation for you and issued a report to support the conclusion.
Assume I have provided you my templates and it has been several years since I performed the business valuation. Now assume that the company has not remained 100% static and there are changes in the performance of the company. The question becomes how the changes in performance impact the asset methods, market methods and the income methods, the industry analysis, the economic analysis and any applicable discounts.
Without the expertise to understand the impact of the changes, you will probably recalculate and get an incorrect result.
Now assume you have provided YOUR report to an outside third party and it is discovered that the value you determined is incorrect. The question becomes, who prepared the report with false and misleading information that relied on YOUR report.
Now you are responsible for any damages the other third party has incurred.
By not providing you with the business valuation templates, the expert is reducing your exposure to potential future lawsuits.
I help attorneys by converting complex financial matters into understandable concepts. This makes it easier for the attorney explain the complex issues to their clients.
I have earned the most difficult business valuation designations for valuations of closely held companies.
I have earned a Master’s Degree in Business Valuations and apply those skills to my everyday business valuations.
Richard Claywell has been valuing closely held companies since 1985. He has earned two of the highest designations in the business valuation field , the Certified Business Appraiser (“CBA”) and Accredited Senior Appraiser (“ASA”), Richard is a Certified Public Accountant, has a Master’s in Business Valuation (MBV) and holds the ASA, CBA, ABV, ICVS, CVA, MAFF, CFD, ABAR, CVGA, ICVS-A credentials.
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