How can AICPA ABV credential holders help in times of need?
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Professional Insights

How can AICPA ABV credential holders help in times of need?

1 year ago · 2 min read

While the public health crisis brings extraordinary market conditions, Accredited in Business Valuation (ABV) credential holders are well-positioned to assist clients during these unprecedented times. Though privately-held business valuations do not strictly follow the public markets, values may be depressed as a result of decreased cash flows, higher risk or lower marketability caused in part by voluntary social distancing and government-imposed closures, stay-at-home orders, etc. Alternatively, businesses in some industries may see an increase in value due to changes in market demand and consumer habits.

The good news is these challenges present opportunities for ABV credential holders to better serve their clients during these extraordinary times. Uncertain of where to turn, clients may be looking for assistance in the following valuation service areas:

Advisory Services

  • Selling their businesses due to market changes

  • Acquiring other businesses due to advantaged entry points or perceived strategic benefits

  • Identifying ways to rebuild business value

  • Planning for cash flows and scenario analysis

Fair Value

  • Testing goodwill, indefinite-lived and long-lived assets for impairment

  • Determining the fair value of their investments

Employee Stock Ownership Plans

  • Exploring whether to utilize the interim valuation date option for ESOPs

Dispute/Litigation

  • Computing economic damages to business value and assisting with litigation or insurance claims

  • Navigating the complexities related to bankruptcy and restructuring

  • Valuing assets for equitable distribution purposes

Tax

  • Making gifts of stock/membership interests while values are depressed

  • Seeking advice on other estate planning issues including the use of alternative valuation dates

Though the list above is not intended to be all-inclusive, it does present examples of how ABV credential holders are helping their clients, and themselves, during the current pandemic. As the fallout from the current health crisis becomes more apparent, the challenges businesses are currently facing will create opportunities for ABV credential holders to enhance their image as competent, credible and experienced valuation service providers.

Interested in pursuing the ABV credential? To qualify for the ABV credential, a candidate must:

For CPAs:

  • Be an AICPA member in good standing

  • Hold a valid and unrevoked CPA license or certificate issued by a legally constituted state authority

  • Pass the ABV Examination, which is offered year-round on a continuous basis and available online with remote proctoring (requirement waived for candidates who have passed the ASA credential exam of the American Society of Appraisers, CFA exam level III of the CFA Institute or CBV credential exam of the Canadian Institute of Chartered Business Valuators)

  • Meet the minimum business experience requirement of 1,500 hours of valuation experience within the 5-year period preceding the date of the ABV application

  • Meet the minimum education experience requirement of 75 hours in the ABV body of knowledge within the 5-year period preceding the date of the ABV application

For qualified valuation professionals:

  • Be an AICPA member in good standing

  • Hold a bachelor’s degree or equivalent from an accredited college or university and complete the AICPA Professional Conduct and Standards Education for Finance Professionals course within 30 days after submitting your application

  • Pass the ABV Examination, which is offered year-round on a continuous basis and available online with remote proctoring (requirement waived for candidates who have passed the ASA credential exam of the American Society of Appraisers, CFA exam level III of the CFA Institute or CBV credential exam of the Canadian Institute of Chartered Business Valuators)

  • Meet the minimum business experience requirement of 4,500 hours of valuation experience within the 5-year period preceding the date of the ABV application

  • Meet the minimum education experience requirement of 75 hours in the ABV body of knowledge within the 5-year period preceding the date of the ABV application

Visit here to learn more about the ABV credential, it’s benefits, and the pathway to becoming an ABV credential holder. Register for the ABV Exam today!

Download the infographic to see how ABV credential holders can create opportunities from challenges

File name: how-abv-credential-holders-can-create-opportunities-infographic

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