Business Valuation—How to Get Started

Source: Journal of Accountancy

Business valuation can be a lucrative niche, but establishing a valuation practice can be a challenge. Here are some first steps to consider:

• Identify good first-time valuation projects for your existing clients. For example, family limited partnerships or small business owners may need valuations for estate-planning or tax purposes.
• Allow plenty of time for your first valuations. You'll need to prepare checklists, familiarize yourself with applicable standards -- such as the AICPA's Statement on Standards for Valuation Services No. 1 (SSVS 1) -- and develop models.
• Offer your services to local CPA firms that don't have valuation capabilities.
• Find experienced valuation experts to review your first reports. This may be expensive, but it will pay off by helping you produce well-written reports that impress clients and counsel.
• Get a valuation credential from the American Society of Appraisers (ASA), the National Association of Certified Valuation Analysts (NACVA), or the AICPA. The AICPA's Accredited in Business Valuation (ABV) credential is available to active CPAs only. Keep in mind that these credentials require an exam and a minimum amount of actual valuation experience.
• Market your valuation services, focusing on the people most likely to hire valuation experts, such as lawyers or other accountants.

For the complete article, click here and read "Breaking Into Business Valuation."

From Journal of Accountancy, American Institute of Certified Public Accountants, March 2010, http://www.journalofaccountancy.com/Issues/2010/Mar/.