When selecting a business valuation firm, it is important to consider the credentials and experience of the firm's professional staff. A comparison of the primary business valuation credentials is shown below.
|
American Society of Appraisers
(ASA) |
Institute of Business Appraisers
(IBA) |
American Institute of Certifed Public Accountants (AICPA) |
National Association of Certified Valuation Analysts (NACVA) |
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| Designation |
Accredited Senior Appriaser |
Accrediated Member |
Certified Business Appriaser |
Master Certified Business Appraiser |
Accredited in Business Valuation |
Certified Valuation Analyst |
Accredited Valuation Analyst |
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| Acronym |
ASA |
AM |
CBA |
MCBA |
ABV |
CVA |
AVA |
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| Education |
College Degree or Equivalent |
College Degree or Equivalent |
College Degree or Equivalent |
College Degree and 2 year Post-Graduate Degree or Equivalent |
College Degree or Equivalent |
College Degree or Equivalent |
College Degree or Equivalent |
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| Other Credentials Required |
None |
None |
None |
CBA |
CPA |
CPA |
None |
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| Business Valuation Experience Requirement |
5 years Full-Time Appraisal Experience, 15 hours USPAP |
2 years Full-Time Appraisal Experience, 15 hours USPAP |
90 hours classroom requirement or 5 years experience in Business Valuations |
10 years CBA designation and 15 years Full-time Appraisal Experience |
Provide evidence of involvement in 10 business Valuation Engagements |
2 years for licenced CPA |
2 years or 10 Business Valuations |
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| Coursework and Exam Requirements |
Successful completion of four 24 hours society training courses with 3 hour exams at the end of each |
Successful completion of four 24 hours society training courses with exams at the end of each |
Successful completion of a 6 hour proctored exam (waived for individuals holding the ASA, NACVA or AICPA designations) |
Detailed experience and recognition by other profesional societies |
Successful completion of an 8 hour proctored exam |
Attendance of a 40 hour society training course, successful completion of a 5 hour proctored exam and a take home case study examination |
Attendance of a 40 hour society training course, successful completion of a 5 hour proctored exam and a take home case study examination |
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| Peer Report Review |
Yes, 2 reports |
Yes, 2 reports |
Yes, 2 reports |
No |
No |
No |
No |
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| Continuing Education Requirements |
40 hours every 5 years |
40 hours every 5 years |
24 hours every 2 years |
Membership in IBA |
60 hours every 3 years |
36 hours every 3 years |
36 hours every 3 years |
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| Ethics Exam |
Yes |
Yes |
No |
No |
No |
No |
No |
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| Uniform Standards of Professional Practice (USPAP) Exam |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
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The credentials and experience of an appraiser are two of the most important areas of consideration when hiring a business appraiser. This is particularly true when the appraisal may be challenged (i.e. tax valuations, ESOP valuations, litigation valuations). A number of court cases over the years have commented on the inadequacy of a business appraiser's trianing, certification and competence to testify as a business valuation expert.
CBA and ASA designations in business valuations are the two most difficult designations to achieve in the business appraisal profession due to the rigorous peer review report requirements.
Atlantic Management Company views the requirements as the most important component of professional certifications. Currently, our professional staff maintian the following credentials: ASA, CBA, MCBA, AVA. Please refer to the Staff Qualifications section for additional information pertaining to our staff and their professional certifications.