What Accredited in Business Valuation Means
Let me explain what Accredited in Business Valuation (ABV) really means for you as a CPA. It's a professional designation given to certified public accountants who focus on determining the value of businesses. The American Institute of Certified Public Accountants (AICPA) oversees this certification, and to get it, you need to go through an application, pass an exam, satisfy business experience and education minimums, and pay a credential fee. As of 2021, that annual fee is $380.
Once you have the ABV, maintaining it requires meeting ongoing work experience standards and committing to lifelong learning. If you earn this, you can use the ABV designation alongside your name, which directly boosts your job prospects, professional standing, and compensation.
Key Takeaways on ABV
Here's what you need to know at a glance: ABV is for CPAs who specialize in business valuation, and you must complete 60 hours of continuing professional education every three years to keep it active. If you're a CPA aiming for this, you'll have to meet specific educational and professional benchmarks before you're even eligible.
How Accredited in Business Valuation Works
The ABV credential goes to CPAs who show strong knowledge, skills, and experience in business valuation. The program covers the core process of valuing businesses, professional standards, qualitative and quantitative analysis, valuation methods, and related areas like financial reporting and litigation. If you hold this designation, you might find yourself working at valuation firms, consulting outfits, or any business that deals with assessing company worth.
Requirements for Accredited in Business Valuation
To pursue ABV, you must hold a valid, unrevoked CPA license from the relevant state authority. You'll also need to pass the ABV exam, though there are waivers for holders of credentials like AM or ASA from the American Society of Appraisers, CFA, or CBV from the Canadian Institute. Every three years, you'll complete 60 hours of continuing professional education and pay an annual fee in the hundreds of dollars.
Business Experience and Education for ABV Candidates
On the experience side, you need at least 150 hours of business valuation work in the five years before applying. You can count up to 15 hours from completing a hands-on case study at the AICPA Forensic and Valuation Services Conference. For education, accumulate 75 hours of valuation-related continuing professional development within those same five years leading up to your application.
The Accredited in Business Valuation Exam
The ABV exam is computer-based and split into two parts, both of which you must pass within 12 months of clearing the first to get credit. Each part gives you three hours and 15 minutes, including a short break. It includes 90 multiple-choice questions per module—78 standalone ones and 12 tied to case studies that test your analytical skills in applying valuation theory and methods.
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