Business Valuation Specialist Job Description, Skills, and Salary
Are you searching for a business valuation specialist job description? Get to know about the duties, responsibilities, qualifications, and skills requirements of a business valuation specialist. Feel free to use our job description template to produce your own. We also provide you with information about the salary you can earn as a business valuation specialist.
Who is a Business Valuation Specialist?
A business valuation specialist determines the economic value of a firm or organization. They create a thorough report that is utilized in business sales, legal disputes, divorce cases, or when determining partner ownership.
Business valuation specialists must possess a thorough understanding of valuation techniques as well as the practical application of this knowledge. While they frequently use computer software tools to carry out their tasks, they may also use manual calculations on occasion.
Business owners collaborate with a business valuation specialist to get a fair assessment of the worth of their enterprise. Specifically for the sale of a firm, partnership ownership, estate and succession planning, and divorce proceedings, businesses need the help of business valuation specialists to ascertain their fair value.
Business Valuation Specialist Job Description
What is a business valuation specialist job description? A business valuation specialist job description is simply a list of duties and responsibilities of a business valuation specialist in an organization. Below are the business valuation specialist job description examples you can use to develop your resume or write a business valuation specialist job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
A business valuation specialist often performs a wide range of duties, some of which include:
- Conduct research on the state of the market and regional factors.
- Analyze both private and public real estate record databases.
- Make use of improved valuation models to increase effectiveness and precision.
- Create models and conduct data mining to help with operational improvements.
- Present findings, sum them up and make senior management recommendations.
- Execute business valuation specialists for mergers and acquisitions, philanthropic donations, gift, and estate taxes, as well as incentive stock option programs.
- Manage marital dissolution, bankruptcy, stockholder disputes, and reorganization.
- Conduct particular financial investigations and financial analyses for complex company cases.
- Implement appropriate risk management tools, including sensitivity and attribution analyses.
- Provide sufficient system reporting to all interested constituencies.
- Investigate the financial results of publicly traded businesses operating in the same sector as the customer to create comparable data.
- Prepare reports containing results about various facets of the company being evaluated.
- Aid in calculating the asset worth of a company so as to evaluate its overall financial health.
- Prepare client presentations that highlight the analysis’ important findings.
- Determine the share price of a corporation based on financial information like earnings per share, price-to-earnings ratios, and price-to-book value ratios.
- Investigate potential investment opportunities in equities, bonds, mutual funds, or real estate.
- Determine the risks connected to investment opportunities, such as market turbulence and interest rate swings.
- Suggest alterations to a company’s capital structure to strengthen its financial situation.
Qualifications
The following credentials are normally required for a business valuation specialist:
- Education: The minimum educational need for business valuation specialists is often a bachelor’s degree in finance, accounting, or economics. A master’s degree in business administration is preferred by several employers (MBA). Business valuation specialists that desire to grow in their careers would benefit from having an MBA.
- Education and Experience: After being employed, business valuation specialists often get on-the-job training. The company’s specific policies and procedures, as well as the software and computer systems they employ, may be covered in this training. To master the fundamentals of the position, training may also involve shadowing another business valuation specialist or a senior team member.
- Licensing and certifications: Although some states do require experts to have a certification to work with specific financial products, such as mortgages and bonds, business valuation specialists are exempt from this need and can be recruited without a license or certification.
Essential Skills
The following abilities are necessary for business valuation specialists to succeed in their careers.
- Analytical Skills: The capacity to analyze facts and draw logical conclusions is a component of analytical skills. Analysts that specialize in business valuation examine potential investment opportunities, assess company performance, and determine market trends. Strong attention to detail and the capacity to quickly understand vast volumes of information are requirements for this profession.
- Keen focus on detail: Business valuation specialists who pay close attention to details may make sure they have all the data they need to make wise investment selections. This can entail carefully examining financial accounts and other papers, seeking clarification as necessary, and verifying the validity of their research methodologies. When examining potential investments, paying attention to the details can be crucial since it enables the analyst to identify potential success factors for an investment before making a choice.
- Strong problem-solving abilities: Having the ability to recognize and address problems is problem-solving. You can face difficulties at work as a business valuation professional that call for problem-solving abilities. For instance, if an investment isn’t doing as you had hoped, you might need to discover a means to boost it or sell it for a profit.
- Knowledge of DCF analysis: Business valuation specialists utilize the DCF model, a financial tool, to assess possible investments. Its name, “discounted cash flow,” refers to the process of calculating an investment’s future value based on its expected revenue over time. The model necessitates expertise in accounting, finance, and business management as well as analytical abilities to understand data and produce future performance forecasts for a company.
- Financial modeling expertise: The process of developing a financial model, a tool that enables firms to forecast their future financial performance, is known as financial modeling. Business valuation specialists frequently build financial models, therefore they require strong financial modeling skills.
- Data analysis: The capacity to decipher vast amounts of data and identify the most crucial information is known as data analysis. Specialists in business valuation study financial data and calculate a company’s value using their data analytic skills.
- Pitch Books: Business valuation specialists utilize pitch books as a presentation tool when making investment recommendations. They provide details on the business, its state at the moment, and its potential for expansion. For investors who might not be familiar with the firm or industry, analysts write pitch books. Making strong pitch books indicates an analyst’s understanding of the market and aids in obtaining money for their employer.
- LBO Modeling: The process of building a financial model that depicts how an investor could view a possible investment is known as LBO modeling. Business valuation specialists use LBO models to determine whether a firm has enough cash flow to repay investors and whether its assets are worth more than its liabilities. To display the company’s finances in this way, complicated calculations, data tables, and graphs are used.
- Skills in Effective Communication: Since business valuation specialists frequently interact with clients and other stakeholders, strong interpersonal skills are essential for this position. It’s crucial to be able to explain complex subjects in a way that is understandable because you could also need to communicate sophisticated financial facts to clients.
- Skills for Critical Thinking: The ability to critically assess a situation and come to a judgment based on the available data is known as critical thinking. Business valuation specialists make choices regarding a company’s value using critical thinking techniques. For instance, a business valuation specialist can choose to utilize a different method to calculate the worth of the company if it has a significant amount of debt.
- Business knowledge: Business valuation specialists frequently provide financial information to corporations and other organizations. As a result, business valuation specialists should have a fundamental understanding of how businesses operate as well as the ability to assess financial data.
- Financial Analysis: The practice of assessing a company’s financial data to identify its strengths and flaws is known as financial analysis. You can be expected to analyze new investment opportunities by going over their financial statements as a business valuation specialist. Strong financial analytical abilities are necessary for this, as well as the capacity to decipher complicated financial papers and come to wise conclusions in light of your results.
- Venture Capital: Private equity companies invest in businesses using venture capital. You can have the duty of evaluating potential investments and advising a company on whether or not to invest as a business valuation specialist. Understanding venture capital can make it easier for you to assess these opportunities.
- Valuation Skills: Business valuation specialists utilize their expertise in valuation to determine the worth of a business or asset. They could also be in charge of developing the financial models that forecast an investment’s long-term performance. They must be aware of how to compute past, present, and future values as well as how to predict cash flow and other factors to do this.
- Real Estate Modeling: The process of modeling is developing a financial model to assess and forecast future outcomes. Real estate modeling is the process of building models through the use of computer programs that can assist investors in deciding whether or when to engage in real estate developments. Business valuation specialists assess investment opportunities, figure out how much money they need to raise, and project future revenue streams using their modeling skills.
- M&A Modeling: The skill of developing and analyzing financial models that depict mergers and acquisitions is known as M&A modeling. When evaluating potential investments, business valuation professionals frequently employ this expertise since they may need to forecast how a company’s worth would change following an acquisition. Business valuation specialists should be at ease with numbers and have outstanding organizational skills because M&A modeling demands strong math skills and attention to detail.
- Excellent organizational abilities: The capacity of the organization is the capacity to monitor numerous tasks and files. You can have a lot of assignments to manage at once as a business valuation consultant. To locate data and reports when you need them, you also need to have a system in place for keeping them structured. To finish your task effectively and precisely, you must have strong organizing abilities.
Experience with investment banking: Investment bankers frequently collaborate with business valuation specialists to finalize transactions. Business valuation specialists must understand the financial markets and how to raise cash because investment banking entails raising funds for businesses and organizations through debt or equity. To advise their clients on whether a firm is worth investing in, business valuation specialists must also be aware of the dangers involved with investments.
How to Become a Business Valuation Specialist
Being a business value analyst can be a very fulfilling career. It gives you the chance to work with a range of firms and industries while putting your analytical talents to use in aiding crucial business choices.
You need to have a solid foundation in statistics and mathematics to work as a valuation analyst. Additionally, you should be able to work alone and think critically and creatively.
You must also have the Certified Valuation Analyst (CVA) qualification to meet the requirements. This is a professional accreditation given to business valuation specialists by the National Association of Certified Valuators and Analysts (NACVA).
You should perform the following actions to obtain this certification:
- Obtain the required CVA credentials and apply for the designation
- Apply for NACVA membership or pay the CVA designation fee.
- Review the necessary content for the CVA exam.
- Pass the CVA exam
- Participate in a peer-reviewed report on business valuation.
- To keep the designation, you must pay the NACVA membership fee or the CVA renewal cost and obtain 36 to 60 hours of continuing education credits every three years.
Where to Work as a Business valuation specialist
Business valuation specialists can be found working for banks, insurance companies, investment companies, and accountancy organizations, among other places. Although certain occupations may demand travel, they normally work in an office setting. Business valuation specialists normally put in a 40-hour work week, although extra time may be needed when business is particularly brisk. Business valuation specialists frequently face pressure to fulfill deadlines and deliver accurate conclusions, which makes their work difficult.
Business Valuation Specialist Salary Scale
In the USA, the average salary for a business valuation specialist is $93,563 per year or $47.98 per hour. Most experienced workers earn up to $165,000 per year, while entry-level roles start at $70,000.
In London, England, the average gross pay for a business valuation specialist is £50,038. This equates to a $24 hourly wage. This is 29% more than the typical business valuation specialist wage in the UK (+£11,289). Additionally, they receive a £1,536 bonus on average. Wage expectations are based on salary survey information obtained from anonymous employees and employers in London, United Kingdom. A business valuation specialist with less than three years of experience may expect to make an annual income of £36,142. On the other hand, the typical pay for a senior-level business valuation specialist (8+ years of experience) is £61,544.
The average gross pay for a business valuation specialist in Canada is $73,631, which equates to $35 per hour. Additionally, they receive a $2,260 bonus on average. Wage projections are based on data from salary surveys that were conducted in Canada with anonymous employees and employers. The typical compensation for an entry-level business valuation specialist (1-3 years of experience) is $53,183. On the other hand, the typical pay for a senior-level business valuation specialist (8+ years of experience) is $90,562.
The average gross pay for a business valuation specialist in Ireland is €52,041, or €25 per hour. Additionally, they receive a €1,598 bonus on average. Wage expectations are based on salary survey information gathered from anonymous employees and employers in Ireland. The typical compensation for an entry-level company valuation professional (1-3 years of experience) is €37,600. On the other hand, the typical pay for a senior-level business valuation specialist (8+ years of experience) is €64,026.
The average gross pay for a business valuation specialist in Ireland is €52,041, or €25 per hour. Additionally, they receive a €1,598 bonus on average. Wage expectations are based on salary survey information gathered from anonymous employees and employers in Ireland. The typical compensation for an entry-level company valuation professional (1-3 years of experience) is €37,600. On the other hand, the typical pay for a senior-level business valuation specialist (8+ years of experience) is €64,026.
In Perth, Australia, the average gross pay for a business valuation specialist is $84,333, which equates to $41 per hour. This is 3% (-$3,026) less than the typical Australian business valuation specialist wage. Additionally, they receive a $2,589 bonus on average. Wage projections are based on salary survey information gathered from anonymous employees and companies in Perth, Australia. A business valuation specialist with 1-3 years of experience at entry level makes, on average, $61,012. On the other hand, the typical pay for a senior-level business valuation specialist (8+ years of experience) is $103,893.
In Nigeria, the average monthly salary for a business valuation specialist is about 435,000 NGN. The lowest salary is 209,000 NGN, and the highest is 683,000 NGN (highest).