What A Business Appraiser's Accreditations Mean
And What They Can Tell You About The Appraiser
It takes many years of education and experience to attain even the first level of certification. Here's what a business appraiser's credentials can tell you about the knowledge and experience that individual brings to the table.
1. Whether Or Not The Appraiser Is A Full Time Professional
Multiple certifications, such as the CBA (Certified Business Appraiser) and ASA (Accredited Senior Appraiser) indicate that the appraiser is a full-time experienced professional dedicated to the highest professional standards.
- The ASA - Accredited Senior Appraiser - is the most prized designation.
It is awarded by the American Society of Appraisers only to those who have:
- completed over 10,000 hours of appraisal work
- successfully passed more than 6 hours of written examinations
- have a college education
- and have had samples of their work product reviewed and accepted by a peer review committee.
Rigorous Courses: ASA appraisers will have taken and passed rigorous courses in valuation theory and practice covering over 100 hours of class room time. These classes are taught by recognized successful appraisers who are experienced and accredited.
Accreditations : There are fewer than 1,000 ASA's with a specialization in business valuation.
- The CBA - Certified Business Appraiser - has the most demanding peer review.
The CBA designation has similar requirements to the ASA. It is awarded by the Institute of Business Appraisers. Its peer review process of work product is the most demanding in the industry with more than 75% of initial reports being returned for correction before being accepted.
Accreditations:There are approximately 400 CBA's working today.
2. Knows How Buyers And Sellers Actually Respond
These additional related certifications indicate a greater breadth of knowledge and experience.
- The ASA/CBA and CBI combination brings the highest level of understanding to any appraisal situation.
A business appraiser (CBA/ASA) that also holds a CBI (Certified Business Intermediary) designation is closely involved with actual transactions and has inside knowledge and experience regarding how buyers and sellers actually respond under different situations.
- The CBI - Certified Business Intermediary - Designation
The International Business Brokers Association awards an accreditation as a Certified Business Intermediary (CBI) to individuals:
- with 2 or more years of brokerage experience
- that have completed a series of 64 hours of specified training classes
- and have passed a 3 hour comprehensive written exam of which approximately 50% is based on issues about how to price businesses for sale.
Accreditations: There are approximately 600 individuals that hold the CBI accreditation.
- "Been There, Doing That" Experience Rules
Individuals that are regularly engaged in the transfer of business ownership in the open market are often thought to be some of the most knowledgeable people, when it comes down to, what do business interests sell for and what are the actual terms and conditions that buyers and sellers agree to in order to accomplish a sale.
There are other accreditations in business appraisal which are offered to CPA's that have taken a prescribed set of courses and passed a written examination.
- The Accredited in Business Valuation (ABV) credential is awarded by the AICPA.
- The National Association of Certified Valuation analyst awards a credential of Certified Valuation Analyst (CVA) to CPA's that have taken a 40 class including an examination and completed a take home case study.
- Neither of these credentials require peer review of work product.