Reframing “Tunnel Vision”: 10 Lessons Learned from NACVA Membership—Third Quarter 2024
Reframing “Tunnel Vision”: 10 Lessons Learned from NACVA Membership
Steven M. Dotterer, JD, MBA, CVA, MAFF
Ethics Oversight Board Chair
Pittsburgh is known as the “city of bridges”. Some of those bridges connect to tunnels; chief among them, the Squirrel Hill and Fort Pitt Tunnels. One May weekend while driving inbound through the Fort Pitt Tunnel, my three-year-old daughter in the back seat suddenly exclaimed, “Woooow, Dad, look at that light! Do you see it?!” in reference to the amazing view coming into focus of the city beyond. Upon reflection, I realized then that I now consider this to be a routine trip and no longer appreciate the amazing view as I should.
Steven M. Dotterer, JD, MBA, CVA, MAFF
Ethics Oversight Board Chair
Pittsburgh is known as the “city of bridges”. Some of those bridges connect to tunnels; chief among them, the Squirrel Hill and Fort Pitt Tunnels. One May weekend while driving inbound through the Fort Pitt Tunnel, my three-year-old daughter in the back seat suddenly exclaimed, “Woooow, Dad, look at that light! Do you see it?!” in reference to the amazing view coming into focus of the city beyond. Upon reflection, I realized then that I now consider this to be a routine trip and no longer appreciate the amazing view as I should.
How does this relate to business valuation? What first led me to the business valuation profession was a cross-disciplinary interest in finance, economics, and law. Coupled with the opportunity to serve clients in diverse industries such as healthcare, niche manufacturing, sports, professional service firms, and more, valuation has proven to be both challenging and rewarding. Of course, valuation/litigation support professionals and the attorneys who hire them can be an exacting group bent on the examination of data, and the deconstruction of assumptions. At times, as practitioners, it is easy to get bogged down in what can be the day-to-day grind of churning out cash flow projections, poring over general ledger entries, and combing through market transactions.
However, as a member of the NACVA Ethics Oversight Board (EOB), I have had the opportunity to meet distinguished professionals from all over the country who help inspire a sense of optimism in the future of the profession and help combat the “treadmill” mentality. NACVA is a diverse organization comprised of people with a breathtaking level of insight, experience, and training. Learning from these interactions helps maintain the sense of engagement from working on a new project, advising a client in a new industry, or learning how to perform a new type of engagement. To help frame this thought process, here is a list of the top 10 lessons I have learned through NACVA membership:
However, as a member of the NACVA Ethics Oversight Board (EOB), I have had the opportunity to meet distinguished professionals from all over the country who help inspire a sense of optimism in the future of the profession and help combat the “treadmill” mentality. NACVA is a diverse organization comprised of people with a breathtaking level of insight, experience, and training. Learning from these interactions helps maintain the sense of engagement from working on a new project, advising a client in a new industry, or learning how to perform a new type of engagement. To help frame this thought process, here is a list of the top 10 lessons I have learned through NACVA membership:
10. Knowledge is just a click away. NACVA provides in-person and remote educational opportunities through its certification programs, the Certified Valuation Analyst (CVA) and the Master Analyst in Financial Forensics (MAFF). Also available, through affiliate organizations Corporate Value Metrics (CVM) and The International Exit Planning Association (IEPA), are the Certified Value Growth Advisor (CVGA) and the Certified Business Exit Consultant (CBEC) credentialing programs, respectively.
9. Innovators are out there. If you talk to enough people in NACVA, it is not hard to see that this is not just a “copycat” profession. Impressively, NACVA has over 5,000 certified business valuation professionals.
8. Ethics and standards guidance is out there. NACVA boards publish a good FAQs section that provides useful insights into common issues faced by the profession. There is also an ethics hotline which can provide insights into a particular situation or concern.
7. Artificial intelligence is not going to render business valuation professionals obsolete. Processes may change, but there are a variety of technical and ethical considerations in the profession that cannot be outsourced to machine learning. As this is being published, NACVA (including the EOB) is actively working to provide guidance on this issue.
6. As valuators, we have the power to educate the next generation(s) about the valuation profession and the unique rewards and challenges associated therewith. NACVA has mentorship programs as well as their 30 Under Thirty and 40 Under Forty recognition programs.
5. The “right” advice for a potential client/prospect may be telling that person you are not the right fit, or that you are aware of another professional who might have the right experience to serve their needs.
4. NACVA is not just a professional association, it is an active local, national, and international (through GACVA) community of individuals with a willingness to help one another.
3. NACVA provided the first business valuation credential for the accounting profession. And thanks to the efforts of NACVA leadership over the years, the CVA is the first and only dually accredited business valuation credential through the National Commission for Certifying Agencies and the ANSI National Accreditation Board.
2. Valuation practitioners have the opportunity to furnish clients with insights and advisory services beyond standard-form compliance and litigation-based work product. An example is providing insight into their business operations using comparative market data and statistical methods.
1. Demand for business valuation, forensic accounting, and litigation support services will continue to grow. As the scope of services continues to widen, practitioners will develop additional specialization and create opportunities for cross-collaboration.
9. Innovators are out there. If you talk to enough people in NACVA, it is not hard to see that this is not just a “copycat” profession. Impressively, NACVA has over 5,000 certified business valuation professionals.
8. Ethics and standards guidance is out there. NACVA boards publish a good FAQs section that provides useful insights into common issues faced by the profession. There is also an ethics hotline which can provide insights into a particular situation or concern.
7. Artificial intelligence is not going to render business valuation professionals obsolete. Processes may change, but there are a variety of technical and ethical considerations in the profession that cannot be outsourced to machine learning. As this is being published, NACVA (including the EOB) is actively working to provide guidance on this issue.
6. As valuators, we have the power to educate the next generation(s) about the valuation profession and the unique rewards and challenges associated therewith. NACVA has mentorship programs as well as their 30 Under Thirty and 40 Under Forty recognition programs.
5. The “right” advice for a potential client/prospect may be telling that person you are not the right fit, or that you are aware of another professional who might have the right experience to serve their needs.
4. NACVA is not just a professional association, it is an active local, national, and international (through GACVA) community of individuals with a willingness to help one another.
3. NACVA provided the first business valuation credential for the accounting profession. And thanks to the efforts of NACVA leadership over the years, the CVA is the first and only dually accredited business valuation credential through the National Commission for Certifying Agencies and the ANSI National Accreditation Board.
2. Valuation practitioners have the opportunity to furnish clients with insights and advisory services beyond standard-form compliance and litigation-based work product. An example is providing insight into their business operations using comparative market data and statistical methods.
1. Demand for business valuation, forensic accounting, and litigation support services will continue to grow. As the scope of services continues to widen, practitioners will develop additional specialization and create opportunities for cross-collaboration.
In short, membership in a community such as NACVA provides a tremendous opportunity to grow both personally and professionally, and can help us maintain that sense of wonder and engagement that likely helped lead us to the profession in the first place.
