If you have ever thought about becoming business valuator, then this article is for you. You'll learn everything you ever wanted to know about business valuators.
The job is high-pressure, requiring long hours, especially for self-employed valuators, but offers strong growth opportunities, with higher salaries and career advancement as experience builds.
In general, Business valuators assess the financial worth of a company by analyzing its assets, liabilities, market competitiveness, tax burden, and other factors. They often work on mergers, acquisitions, estate planning, or divorce cases, helping clients determine the value of a business to see if it's worth it to potentially buy, sell, or for settlement purposes.
On a typical day, business valuators spend their time analyzing the financial a company, to crunch data about the assets, liabilities, and capital of a company to prepare profit and loss statements and show the financial position of a company. They may also meet with clients to discuss business goals or gather information. Traveling to client sites is common, for evaluating assets such as stock options or estates in divorces and bequests. In this day and age, a high-profile divorce can earn a business valuator a fee as attractive as a corporate commission.
Business valuators work in office settings or travel to meet clients.
To become a business valuator, earn a bachelor’s degree in accounting or business, and become a Certified Public Accountant (CPA) by passing the CPA exam. Gain experience in public accounting firms, then specialize in business valuation. Obtaining the Accredited in Business Valuation (ABV) certification from the AICPA is highly recommended. Continuing education is also important for career advancement.
Business valuators' salaries can vary depending on experience and employment type. Starting out, they earn between $26,000 and $30,000. After 5 years, salaries can rise to around $40,000, and after 10 years, business valuators can make around $80,000 if they hold managerial positions. Self-employed valuators may earn $50,000 or more.
Business valuators may need additional training, such as the ABV certification from the AICPA, ongoing continuing education on valuation methods and software, and industry-specific knowledge to stay competitive and up-to-date.
Business valuators assess several risks, including operational risks (day-to-day challenges), financial risks (debt and liquidity concerns), market risks (changes in consumer demand and competition), geopolitical risks (impacts from government policies or conflicts), and industry-specific risks (unique challenges in certain sectors). Understanding these risks is crucial for accurately valuing a company.
While technology and computer software are becoming more important for business valuators, the chances of them being fully replaced by robots soon seem low. Business valuation requires a high level of expertise in analyzing complex financial data, understanding market dynamics, and engaging in client interactions and these are tasks that still relies heavily on human judgment and decision-making.
They retire around their 60s or 70 and as a business valuator, you'll gain valuable experience in financial analysis, critical thinking, and client interaction. You'll develop expertise in assessing the worth of companies across various industries, learning to navigate complex financial statements, market trends, and the legal or regulatory factors that impact business value. You’ll have an impact for helping businesses make informed decisions about acquisitions, sales, or mergers, which can have a significant influence on the financial success and strategic direction of companies. However, if you pass up opportunities in this field, you may regret not capitalizing on the need for business valuators, especially as mergers and acquisitions continue to rise. Missing out on these opportunities might mean forgoing the chance to specialize in a high-demand area with strong earning potential and career growth. Additionally, bypassing the opportunity to become a business valuator could mean missing out on developing a reputation and network in a highly respected profession.
My goal is to get in the business valuation field in the next five years
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Authority: research journal
Date: still relevant
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Rationale: to inform or educate
Authority: research journal
Date: still relevant
Accuracy: probably true
Relevance: relevant for this document