Qualifications for CVA Certification
Qualifications for CVA Certification
For CPAs/CAs/Accredited Accountants:
1. Hold an active, valid, and unrevoked CPA license to practice accounting issued by a legally constituted state government authority.
1. Hold an active, valid, and unrevoked CPA license to practice accounting issued by a legally constituted state government authority.
For Non-CPAs:
2. Hold a business degree (i.e., management, economics, finance, marketing, accounting, or other business field) and/or a Master of Business Administration (MBA) or higher business degree from an accredited college or university; and be able to demonstrate, with business references or attestations from current or previous employers and/or partners, substantial experience in business valuation. For this purpose, substantial could mean:
a) Two years or more full-time or equivalent experience in business valuation and related disciplines; or
b) Having performed 10 or more business valuations where the applicant’s role was significant enough to be referenced in the valuation report or a signatory on the report; or
c) Being able to demonstrate substantial knowledge of business valuation theory, methodologies, and practices. For example, having a combination of published works on the subject and completed either a PhD in finance or economics or a doctor of business administration (DBA) from an accredited institution of higher education and having some work experience. Or, having obtained a credential from another recognized valuation-accrediting organization; or
d) Having obtained the Master Analyst in Financial Forensics (MAFF) certification or having obtained a certification from another recognized (must be approved by the VCB) valuation, financial accrediting, government organization, or government endorsed program.
b) Having performed 10 or more business valuations where the applicant’s role was significant enough to be referenced in the valuation report or a signatory on the report; or
c) Being able to demonstrate substantial knowledge of business valuation theory, methodologies, and practices. For example, having a combination of published works on the subject and completed either a PhD in finance or economics or a doctor of business administration (DBA) from an accredited institution of higher education and having some work experience. Or, having obtained a credential from another recognized valuation-accrediting organization; or
d) Having obtained the Master Analyst in Financial Forensics (MAFF) certification or having obtained a certification from another recognized (must be approved by the VCB) valuation, financial accrediting, government organization, or government endorsed program.
Exceptions for Non-CPAs/CAs/Accredited Accountants Specializing in Intellectual Property (IP) Valuation to Qualify, the Applicant Must:
3. Hold a degree in a field of engineering, or in a field of science or technology, or an advance degree subject to VCB review and approval, from an accredited college or university that uniquely qualifies the applicant to specialize in an area of IP valuation. Applicant must also be able to demonstrate with references or attestations from current or previous employers and/or partners, experience and/or qualifications in the field or related to the field of business valuation. For this purpose, experience could mean:
a) Two years or more of full-time or equivalent experience in business valuation and related disciplines; or
b) Having performed 10 or more business valuations where the applicant’s role was significant enough to be referenced in the valuation report or a signatory on the report; or
c) Having obtained the Master Analyst in Financial Forensics (MAFF) certification or having obtained a certification from another recognized (must be approved by the VCB) valuation, financial accrediting, government organization, or government endorsed program; or
d) Being able to demonstrate substantial knowledge of business valuation theory, methodologies and practices. For example, having a combination of published works on the subject and completed either a PhD in finance or economics or a doctor of business administration (DBA) from an accredited institution of higher education; or
e) Having taken 100 or more hours of professional or collegiate education on business valuation theory and its Body of Knowledge or areas directly “related” to the field. Up to 40 of the 100 hours can be training in the “related” areas of finance, accounting, and economics. Such training must be substantiated with certificates of completion or transcripts that document the hours taken for the VCB’s review and approval.
b) Having performed 10 or more business valuations where the applicant’s role was significant enough to be referenced in the valuation report or a signatory on the report; or
c) Having obtained the Master Analyst in Financial Forensics (MAFF) certification or having obtained a certification from another recognized (must be approved by the VCB) valuation, financial accrediting, government organization, or government endorsed program; or
d) Being able to demonstrate substantial knowledge of business valuation theory, methodologies and practices. For example, having a combination of published works on the subject and completed either a PhD in finance or economics or a doctor of business administration (DBA) from an accredited institution of higher education; or
e) Having taken 100 or more hours of professional or collegiate education on business valuation theory and its Body of Knowledge or areas directly “related” to the field. Up to 40 of the 100 hours can be training in the “related” areas of finance, accounting, and economics. Such training must be substantiated with certificates of completion or transcripts that document the hours taken for the VCB’s review and approval.
Required For All Applicants*:
4. Successfully demonstrate that applicant meets NACVA’s Experience Threshold by completing a sample Case Study or submitting an actual and sanitized Fair Market Value (FMV) valuation report prepared in the last 12 months for peer review (See Experience Alternative for Case Study);
5. Submit two professional and two business references; and
6. Pass a comprehensive, five-hour, multiple-choice, proctored examination.
An application to take the examination must be submitted prior to issuance of the exam. To hold an active CVA designation, individuals must pay requisite annual fees and comply with NACVA's recertification requirements. CVAs who allow these requirements to lapse will lose their certification and must reapply to become certified if they later choose to reinstate.
An application to take the examination must be submitted prior to issuance of the exam. To hold an active CVA designation, individuals must pay requisite annual fees and comply with NACVA's recertification requirements. CVAs who allow these requirements to lapse will lose their certification and must reapply to become certified if they later choose to reinstate.
Optional For All Applicants:
Attend a five-day training program, the hours of which can apply towards fulfilling the educational requirement in 3.e.
Attend a five-day training program, the hours of which can apply towards fulfilling the educational requirement in 3.e.
NACVA offers the CVA certification to government employees under a different set of criteria. To qualify, the applicant must:
- Have a four-year college degree, i.e., a minimum of a BA, BS, or similar degree;
- Have the combined equivalent of two years of full-time experience in business valuation (BV) and related disciplines. BV Experience Requirements must be approved by the applicant’s immediate supervisor or the BV Committee for the applicable government-funded institution;
- Have a minimum GS-12 or comparable rating (exceptions will be considered upon written request from a supervisor attesting to the applicant’s qualifications and competency to pursue certification);
- Be currently employed by a federal or state government agency;
- Successfully demonstrate that applicant meets NACVA’s Experience Threshold by completing a sample Case Study or submitting an actual and sanitized Fair Market Value (FMV) valuation report prepared in the last 12 months for peer review (See Experience Alternative for Case Study);
- Submit two professional and two business references; and
- Pass a comprehensive, five-hour, multiple-choice, proctored examination.
An application to take the examination must be submitted prior to issuance of the exam. To hold an active CVA designation, individuals must pay requisite annual fees and comply with NACVA's recertification requirements. CVAs who allow these requirements to lapse will lose their certification and must reapply to become certified if they later choose to reinstate.
Denial of Qualifications
An applicant who has been advised by NACVA staff that they do not qualify to sit for the CVA exam may appeal to the Valuation Credentialing Board (VCB).Appeals, or exception requests, may also be made under this policy by individuals whose Candidate status is expiring and who feel significant extenuating circumstances warrant an extension of the Candidate period. This appeal should be in writing, along with the applicant’s reasoning as to why they do qualify, and any documentation to assist the VCB in making a determination. The data should be faxed or e-mailed to the current Chairperson of the VCB. This contact information is posted on NACVA’s website or can be obtained by calling NACVA’s Executive Director. The appeal will be reviewed by the VCB, or its designated sub-committee, and a recommendation will be placed on the agenda for the next VCB meeting for consideration by the full Board. The VCB, at its discretion, may follow-up with the applicant to request additional information; as such, the applicant should be sure to include all relevant information with the initial appeal. The Chairperson will advise the applicant and NACVA’s Director of Member/Client Services of the VCB’s decision.
CVA Exam and Applied Experience
CVA Exam and Applied Experience
The certification process consists of two parts: Part One (testing knowledge) is the proctored portion; Part Two (evaluating applied experience) is not an exam but is a take-home/in-office Case Study. All candidates must also pay a CVA certification exam fee. The five-hour proctored exam consists of multiple-choice questions, testing applicants on NACVA’s Business Valuation Body of Knowledge. The exam is administered at the conclusion of each five-day training program NACVA sponsors throughout the country, or at local proctoring facilities NACVA has contracted with nationwide for the applicants’ convenience, or through live remote proctoring provided by Kryterion. Part Two is a 60–80 hour sample Case Study provided by NACVA and requires the completion of a comprehensive business valuation report (see Experience Alternative for Case Study below). Applicants have 60 days to complete and submit the Case Study, starting from the date they take the proctored exam. Candidates are notified of proctor exam results within two weeks; and within two to four months for the Case Study demonstrating one meets the association's applied experience requirement (Experience Threshold). Either Part One, the exam, or Part Two, the Case Study, if failed, may be retaken for a modest fee to cover postage, copying, grader’s fees, etc. Certain time restrictions apply. (NACVA’s Credentialing Administrator can provide more details on the process.)
CVA applicants are required to demonstrate that they meet NACVA’s Experience Threshold by completing a sample Case Study or submitting an actual and sanitized Fair Market Value (FMV) valuation report on an operating business, prepared in the last 12 months, representative of the practitioner’s work product. The report submitted is reviewed using a standardized scoring key developed by a committee of NACVA subject matter experts and approved by the VCB. If the candidate elects this option, the Experience Waiver Application to Submit an Actual Sanitized Report form must be received with the associated $200 fee. Additionally, candidates must either be a current Practitioner (or Academician or Government) member of NACVA prior to consideration for waiver, and/or have paid the applicable CVA designee enrollment fee.
CVA candidates with substantial experience in the field of business valuation may qualify to waive NACVA’s prerequisite for demonstrating they meet NACVA’s Experience Threshold, currently requiring that one either take our Case Study or submit an actual valuation report. Proof of substantial experience is automatic if one possesses either the Certified Business Appraiser™ (CBA™), Master Certified Business Appraiser™ (MCBA™), or Accredited Senior Appraiser (ASA) (for business valuation) designations awarded by the Institute of Business Appraisers or American Society of Appraisers, respectively. This is because these credentials have a report submission requirement that undergoes a critical review and grading process which one must pass before being awarded the designation.
If one possesses the Accredited in Business Valuation (ABV®) designation awarded by the American Institute of Certified Public Accountants®, and has previously earned the CVA credential, subsequently dropped it, and now wishes to re-acquire the CVA, they may qualify for a waiver (see Elected or Imposed Inactive Status). Presently, NACVA will only consider those possessing one or more of the aforementioned designations for waiver of this requirement. If a candidate wishes to pursue this avenue to a CVA designation, he or she must submit a letter and supporting documentation. We may request additional information. Under no circumstances, will NACVA waive the requirement for candidates to take and pass our proctored multiple choice exam. Please allow up to 60 days for the VCB to review and respond to waiver requests.
Examination and Experience Threshold Determination Appeals
Candidates may appeal an unsatisfactory review of the Case Study as to meeting the Experience Threshold and/or a failed determination on their exam. The process of appeal follows three steps (modest administrative and grading fees may apply). All communications should be in writing.
First Step: The candidate’s first step is to contact NACVA’s Credentialing Administrator. At the applicant’s request, multiple-choice exams may be hand-scored to ensure accurate grading. Many issues regarding the Case Study and/or valuation report can be resolved at this level as in most cases, the Case/Report will be reviewed for a second or third opinion (depending on the situation)
Second Step: If the response from step one regarding the Case Study is not satisfactory, the candidate should contact the Chair of the Exam and Grading Committee who will deliberate the matter with members of the Committee and render a decision accordingly. The Committee Chair changes periodically, so please call NACVA HQ to obtain the correct contact information.
Third Step: If step one and step two resulted in what the candidate considers an unsatisfactory resolution, he or she should put the facts, as the candidate perceives them, in writing and e-mail them to the Chair of the VCB requesting review. The Chair will place the complaint on the agenda for full Board consideration and assign a Board member to review the complaint and to offer a solution to the Board as a whole. The assigned Board member may contact the candidate who filed the appeal for more information if it is thought that the written document does not have enough detail to make a well-considered decision. The assigned Board member may contact the reviewer(s) involved for additional information. The assigned Board member will present the case to the full Board for resolution. The Chair will advise the candidate, by e-mail, as to the resolution and decision made by the Board. The VCB’s decision is final.
CVA candidates with substantial experience in the field of business valuation may qualify to waive NACVA’s prerequisite for demonstrating they meet NACVA’s Experience Threshold, currently requiring that one either take our Case Study or submit an actual valuation report. Proof of substantial experience is automatic if one possesses either the Certified Business Appraiser™ (CBA™), Master Certified Business Appraiser™ (MCBA™), or Accredited Senior Appraiser (ASA) (for business valuation) designations awarded by the Institute of Business Appraisers or American Society of Appraisers, respectively. This is because these credentials have a report submission requirement that undergoes a critical review and grading process which one must pass before being awarded the designation.
If one possesses the Accredited in Business Valuation (ABV®) designation awarded by the American Institute of Certified Public Accountants®, and has previously earned the CVA credential, subsequently dropped it, and now wishes to re-acquire the CVA, they may qualify for a waiver (see Elected or Imposed Inactive Status). Presently, NACVA will only consider those possessing one or more of the aforementioned designations for waiver of this requirement. If a candidate wishes to pursue this avenue to a CVA designation, he or she must submit a letter and supporting documentation. We may request additional information. Under no circumstances, will NACVA waive the requirement for candidates to take and pass our proctored multiple choice exam. Please allow up to 60 days for the VCB to review and respond to waiver requests.
Examination and Experience Threshold Determination Appeals
Candidates may appeal an unsatisfactory review of the Case Study as to meeting the Experience Threshold and/or a failed determination on their exam. The process of appeal follows three steps (modest administrative and grading fees may apply). All communications should be in writing.
First Step: The candidate’s first step is to contact NACVA’s Credentialing Administrator. At the applicant’s request, multiple-choice exams may be hand-scored to ensure accurate grading. Many issues regarding the Case Study and/or valuation report can be resolved at this level as in most cases, the Case/Report will be reviewed for a second or third opinion (depending on the situation)
Second Step: If the response from step one regarding the Case Study is not satisfactory, the candidate should contact the Chair of the Exam and Grading Committee who will deliberate the matter with members of the Committee and render a decision accordingly. The Committee Chair changes periodically, so please call NACVA HQ to obtain the correct contact information.
Third Step: If step one and step two resulted in what the candidate considers an unsatisfactory resolution, he or she should put the facts, as the candidate perceives them, in writing and e-mail them to the Chair of the VCB requesting review. The Chair will place the complaint on the agenda for full Board consideration and assign a Board member to review the complaint and to offer a solution to the Board as a whole. The assigned Board member may contact the candidate who filed the appeal for more information if it is thought that the written document does not have enough detail to make a well-considered decision. The assigned Board member may contact the reviewer(s) involved for additional information. The assigned Board member will present the case to the full Board for resolution. The Chair will advise the candidate, by e-mail, as to the resolution and decision made by the Board. The VCB’s decision is final.
*Note: Membership in the National Association of Certified Valuators and Analysts® (NACVA®) is no longer required to obtain or maintain NACVA’s Certified Valuation Analyst® (CVA®).This policy change was enacted to comply with standards promulgated by the accrediting bodies: the National Commission for Certifying Agencies® (NCCA®), a division of the Institute for Credentialing Excellence™ (ICE™), and the ANSI National Accreditation Board® (ANAB®), with whom we have accredited our CVA credential. Candidates or designees who opt not to join/belong to NACVA as a Practitioner, Academician, Government, or Student member will be subject to annual designee renewal fees and tri-annual recertification fees; and new candidates will be subject to both a certification exam fee and a designee enrollment fee. For NACVA members, these fees are embedded in the current dues and fee structure. If one chooses not to be a member, he or she will pay a little less in fees but receive no NACVA benefits other than the ability to use the credential in reports and for marketing purposes. Such designees will also have a NACVA directory listing and must comply with NACVA’s Professional Standards. For more information on this non-member option and reduced pricing, contact NACVA headquarters for details at (800) 677-2009.
NACVA reserves the right to refuse membership and/or certification to any person. Additionally, NACVA may use whatever resources are available to confirm and/or investigate further crimes or convictions, if indicated above, to satisfy itself that what has been reported is accurate and complete. A member or holder of a NACVA certification may have their membership and/or certification terminated based on appropriate grounds as determined by the Executive Advisory Board.
NACVA reserves the right to refuse membership and/or certification to any person. Additionally, NACVA may use whatever resources are available to confirm and/or investigate further crimes or convictions, if indicated above, to satisfy itself that what has been reported is accurate and complete. A member or holder of a NACVA certification may have their membership and/or certification terminated based on appropriate grounds as determined by the Executive Advisory Board.