Choosing the right certified valuation expert can significantly impact your business decisions. Whether you’re selling, merging, or planning strategically, understanding the different types of valuation certifications can guide your path. This blog breaks down each certification, its purpose, and helps you determine which expert fits your specific needs.
Introduction: Why Choosing the Right Valuation Expert Matters
Business owners, founders, and directors face critical moments where the value of the business needs to be clearly understood. Whether it’s for raising capital, selling, settling disputes, or estate planning, the right certified valuation expert brings credibility and precision to the process. But not all certifications are created equal. With titles like Certified Valuation Analyst (CVA), Certified Business Valuation Analyst, and Certified Financial Modeling & Valuation Analyst (FMVA), how do you know who to trust?
Let’s explore the landscape of certified valuation professionals, what each title means, the requirements involved, and when to hire which expert.
1. What Is a Certified Valuation Analyst (CVA)?
The Certified Valuation Analyst (CVA) is awarded by the National Association of Certified Valuators and Analysts (NACVA). It’s one of the most respected designations in business valuation, especially for CPAs and financial professionals.
What They Do:
CVAs are trained to perform business valuations for various purposes including mergers, acquisitions, financial reporting, litigation support, and succession planning.
Certified Valuation Analyst Requirements:
- Bachelor’s degree
- CPA license or substantial business valuation experience
- Completion of NACVA’s five-day training program
- Pass the CVA exam
- Submit a demonstration report or complete a case study
When to Hire a CVA:
- You need a business appraisal for IRS reporting, divorce, or shareholder disputes
- You want to sell or merge your business
- You need an expert witness in a legal setting
2. What Is a Certified Business Valuation Analyst?
While sometimes used interchangeably with CVA, the Certified Business Valuation Analyst title often refers to professionals holding certifications like the ABV (Accredited in Business Valuation) from the AICPA or ASA (Accredited Senior Appraiser) from the ASA Institute.
Key Distinctions:
- ABVs are often CPAs with deep accounting knowledge
- ASAs typically have specialized expertise in valuing complex assets and businesses
What They Do:
Certified business valuation analysts provide defensible valuations for closely held businesses, intangible assets, and complex financial instruments.
When to Hire a Certified Business Valuation Analyst:
- You require a comprehensive, defensible valuation for tax, legal, or regulatory purposes
- You need a valuation as part of financial due diligence or restructuring
3. Certified Financial Modeling & Valuation Analyst (FMVA)
The Certified Financial Modeling & Valuation Analyst (FMVA) is issued by the Corporate Finance Institute (CFI). Unlike CVAs or ABVs, FMVAs focus heavily on financial modeling, forecasting, and valuation through spreadsheet-based tools.
What They Do:
FMVAs build complex financial models used in investment banking, private equity, corporate development, and internal financial planning.
Certified Financial Modeling & Valuation Analyst Requirements:
- No degree required, but finance/accounting background is helpful
- Completion of 12+ courses and final exam from CFI
- Emphasis on Excel modeling, valuation methods, and scenario analysis
When to Hire an FMVA:
- You need a robust financial model for internal planning, forecasting, or fundraising
- You require scenario analysis to guide strategic decisions
4. Certified Financial Valuation Analyst
The term Certified Financial Valuation Analyst isn’t an officially recognized designation like CVA or FMVA, but may refer to professionals holding overlapping credentials in finance and valuation.
This designation could refer to:
- CVAs with extensive financial analysis experience
- FMVAs with valuation focus
- CFAs (Chartered Financial Analysts) who do valuation work
What They Do:
They provide financial analysis tied closely to valuation, often in corporate finance settings.
When to Hire One:
- When you need a mix of deep financial insight and valuation expertise
- For internal business planning or investor presentations
5. Certified Patent Valuation Analyst (CPVA)
The Certified Patent Valuation Analyst (CPVA) is offered by the Business Development Academy and focuses on the valuation of intellectual property (IP), especially patents.
What They Do:
CPVAs assess the value of intangible assets like patents, trademarks, copyrights, and IP portfolios.
Certified Patent Valuation Analyst Requirements:
- Background in finance, IP law, or science/engineering
- Completion of a training program with a final exam
When to Hire a CPVA:
- You’re licensing or selling intellectual property
- You need to value IP for investment, litigation, or tax purposes
6. Certified Valuation Analyst Requirements Recap
| Certification | Issuing Body | Key Requirements | Primary Use Cases |
|---|---|---|---|
| CVA | NACVA | CPA or valuation experience, exam, case study | Litigation, M&A, tax, estate planning |
| ABV/ASA (Business Valuation Analyst) | AICPA/ASA Institute | CPA + valuation coursework or experience | Complex valuations, compliance |
| FMVA | CFI | Complete online curriculum | Financial modeling, forecasting |
| CPVA | Business Development Academy | IP background + training | Patent/IP valuation |
Understanding the requirements helps you choose a qualified expert based on your specific valuation needs.
7. Which Certification Is Right for Your Business?
Scenario 1: You’re Selling Your Business
Hire a CVA or Certified Business Valuation Analyst (ABV/ASA). These professionals offer reliable valuations needed by buyers, banks, and legal counsel.
Scenario 2: You Need Financial Forecasts
Go with an FMVA. Their modeling skills can project growth, optimize budgeting, and help you prepare for fundraising.
Scenario 3: You’re Licensing or Selling Patents
Choose a CPVA. Their training ensures they understand how to assign value to intangible IP assets.
Scenario 4: You’re in a Legal Dispute
A CVA or ABV with courtroom experience can serve as an expert witness.
Scenario 5: You Need General Financial Valuation Support
Look for professionals who might combine FMVA, CVA, or CFA credentials.
FAQs About Certified Valuation Analysts
Q: How long does it take to become a Certified Valuation Analyst?
A: Earning the CVA typically takes a few months, depending on your experience and study time.
Q: Are Certified Valuation Analysts recognized by the IRS?
A: Yes, CVAs are widely accepted for IRS-related valuations.
Q: What’s the difference between a CVA and FMVA?
A: CVAs focus on compliance-based, report-driven valuations. FMVAs specialize in modeling and forecasting.
Q: Can I use a FMVA for legal valuations?
A: Not typically. FMVAs are more useful for internal decision-making, not courtroom or tax documentation.
Q: What if my valuation involves both IP and tangible assets?
A: You may need both a CPVA and a CVA to ensure complete coverage.
Take the Next Step
Choosing the right business valuation advisor depends on your goals. Are you preparing for a sale, needing to value patents, or looking for solid financial modeling? Each designation brings unique strengths.
Our team brings over 30 years of valuation experience and holds multiple certifications, including CVA, FMVA, and CPVA. Let’s talk about your goals and match you with the right expert.
Book Your Business Valuation Today
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