[Anonymous]

https://www.aicpa.org/ForThePublic/FindACPA/Pages/Find-an-ABV.aspx

Looks like there are just under 5,000 CPAs that are Accredited in Business Valuation in the U.S.

Has anyone taken the exam?

[How many letters do you need]

Ok everybody I'm all set up and here is what I did.

Membership: I joined both the AICPA and FVS section to obtain the discounts on materials and exams. With everything I purchased it worked out to about the same cost including the dues, so may as well obtain membership. I figured I will need to once certified anyway. You also get a prorated discount for the FVS section fees when you pay for your initial credential fee (since the credential fee includes the section membership).

Materials and Test Order: Signed up for section 2 in the spring and section 1 in the summer. Since I have some basic knowledge of valuation, but not extensive, I thought I would bite the bullet and get a self study course as a primer for the review course. I went with Understanding Business Valuation, it includes 36 CPE toward my required 75 for the credential and thought it would be a solid way to know where to focus my efforts for the review. It is also very similar to a suggested book in the COS (same author and similar title) so I figured it would be solid. Also purchased the self study review course (18 CPE).

Cost:
Membership Dues: $525
Exams: $330 (includes AICPA membership & early bird)
Materials: $477

A note on the section membership discount-the website states that you will receive an additional 20% section membership discount, I didn't receive that on the materials or the exam fees and have an email out inquiring. I expect materials to end up about $80 less and exam fees to be about $75 less.

Total Cost: $1,332 – ouch. The good news is that retakes are only $60 and this includes materials for both sections so costs going forward are basically nil. Still, seriously hoping retakes will not be necessary…

Study Plan:
Now – 4/1 – Relax
4/1-4/30 – Complete the business valuation course, take notes of problem areas during the final CPE exam
5/1-5/31 – Review course for section 2
6/1-Exam Date Sec2- Final review section 2
Exam Date-7/1 – Relax
7/1-7/31 – Review course for section 1
8/1-Exam Date Sec1- Final review for section 1

Ill post some insights and reviews on materials and topics as I go. Ill also post experiences as I move through the exams….

MBA,CMA,CPA, CFF?, ABV?

[ror668]

Where did you obtain the understanding business valuation book that has 36 CPE hours? Right now I am working with the AICPA book, “Preparing for AICPA's ABV Examination Review”. Is that the other book that you had obtained, and is it worth 16 CPE?

[How many letters do you need]

ror – I got that one too, that will be my review materials but I wanted a course with some meat so I can get some of the concepts down. Here is a link:
https://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/BusinessValuationandLitigationServices/PRDOVR~PC-732880/PC-732880.jsp?cm_vc=PDPZ1

I also might do the similar “Introduction to Business Valuation” for another 18.5, but probably after the exams to pick up some easy CPE
https://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/BusinessValuationandLitigationServices/PRDOVR~PC-745780/PC-745780.jsp?cm_vc=PDPZ1

MBA,CMA,CPA, CFF?, ABV?

[How many letters do you need]

Oh as for the review materials, if you look at the bottom it gives the recommended CPE. I was mistaken above, it's only 12.5 CPE…still better than nothing!

https://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/Accounting/PRDOVR~PC-745790/PC-745790.jsp

The way I see it 36+12.5 means I'm 48.5 into my 75 by the time I take the exam. Add the introduction course for another 18.5 (which should be easy after the exam prep) and that brings me to 67 of 75. My state CPA society has some CPE in business val for another 8 or so, costs around $200 but I figure that will round out my 75 and can take the same time as the introduction course. If I pass my exams I can apply at that point, if I fail one or both (hopefully not) the CPE will be a great way to keep everything fresh for the Fall retake….

MBA,CMA,CPA, CFF?, ABV?

[ror668]

Thank you very much for providing that information. I was really trying to figure out a way in which I will ultimately get the 75 credits because I want to get my license soon after passing the exam. I signed up for both of mine in the summer sessions so still waiting to see when i can schedule them for. I am sort of considering doing both in a single day since this exam up until the last year was just one 6 hr sessions. They clearly wanted more fees and split it into two parts. Have you valued any entities yet in the M&A work that you do?

[How many letters do you need]

No problem ror! Hoping we can turn this can turn into a study group and reference for others as well so as you going through materials if there is anything you want to throw out feel free, questions/observations/exam experiences, etc. Ill be doing the same.

I haven't done full valuation reports, but I've worked in a support role for M&A, having spent a good amount of my career in corporate finance. I'm solid in financial modeling, so I've built cash flow models to forecast out net income of potential acquisitions, also valued sections of business that my company was interested in purchasing (such as a product line or segment). In all cases I've analyzed results and given a recommended range of value for the powers that be to have when they walk into a negotiation. What about yourself?

Having just received my materials last night, I've begun perusing them (oh and by the way, Understanding BV is a GIANT of a book. I planned a month for the whole thing but that might not be enough). What is most interesting to me is all of the various methods, in the corporate world we tend to find a method we like and that is THE way to do it, but I like the various methods. As I think about transitioning into consulting, running through a few methods to get a range I imagine would be much more thorough way to go.

On the windows, the idea of doing both in the summer is interesting. I thought about doing both in the spring but I don't get the value, since you can't retake a failed spring exam in the summer. I know there is going to be some degree of both calculation and theory in both exams, but I thought they split the material pretty well between calculation (mostly module 1) and theory (mostly module 2), leaving little need worry about relying on subject matter on one to build for the other. If I were a little more experienced on this stuff, I would probably do both in the same window and get them out of the way but I think I'm going to have a bit of learning to do, as opposed to just review.
At the end, if I can focus on half of this material per exam, then mentally shelf it and focus on the other half, I need to take advantage of that. But more power to you doing them both in the same window! Hope you kill it!
Edit: Just read you are doing both in the same DAY….that is incredible..you MUST do an exam experience for that!

At any rate I've got Vegas for the weekend coming up tonight, no more of this stuff till Monday, but then I go full speed. I'm motivated and actually a looking forward to it. We will see if that changes in a few weeks..hahah…

MBA,CMA,CPA, CFF?, ABV?

[How many letters do you need]

Just got my NTS in the mail and a few days early might I add. Somewhat involved process as you have to create a new testtaker log in, but it keeps track of your schedules and it looks pretty easy to reschedule or cancel online. Part I is now scheduled for June 11. And so the clock begins…

I've also been able to peruse the materials I've purchased. Understanding Business Valuation is a good source; it's huge and the material is laid out fairly well (so far). It's also pretty well written which helps me stay awake. I just wish there were more end of chapter questions, more in the line of 30-40 rather than just 6. The official exam review book is much smaller but appears to be pretty solid from my initial glances.

I think the lack of questions are going to be an issue for me. I need to practice to learn and nobody has a test bank out there for ABV, it's just too small. So I've got the end of chapter questions in UBV, the final exam so to speak in UBV and the exam in the review materials. It doesn't seem to be enough…but I guess it will have to be…

MBA,CMA,CPA, CFF?, ABV?

[ror668]

Yeah I think that overall this exam is way less strenuous then the time commitments for the CPA exam. I would say a good starting point would be to familiarize yourself with the SSVS No. 1 (Free to Download). I have not yet really cracked into my AICPA book but am hoping to begin soon, although my exam will be in the Summer. I have a few friends whom have passed the exam in the last year that I can get their opinions on the amount of studying time needed.

[Mayo]

CFA and/or ASA > than ABV. Just so you are aware. Don't even look at the CVA. It's a crap designation.

But keep in mind the ABV is easier to obtain if you're already a CPA than either ASA or CFA. But there's a reason why it's considered an inferior designation. And reputation matters if you choose to do litigation support as an expert witness. Less so if you just want to work in the field, but ASA/CFA do seem to be prized over the ABV for many valuation shops from the people I know.

Mayo, BBA, Macc

[How many letters do you need]

Mayo: I get the ASA and CFA are more highly regarded, but the ASA requires significant experience, experience performing full reports (not just supporting as you would in most entry big4 opportunities); which is why I suspect it's more highly regarded. Real full report experience in this field appears to be really hard to obtain, which is where the ABV comes in. I look at it as the best entry certification to get the experience required for the ASA. As for the CFA, that requires significant market experience as well, and quite frankly is an extremely time consuming process with only a portion of material on this type of business valuation; the CFA holds weight more because it's the CFA than it does because it shows you know business valuation. I am lucky enough to have an opportunity with a consultant in the business a long time, who will give me that full report experience (with her review, of course). Since I would rather not embarrass myself and to also show her I'm serious about this, the ABV comes in handy. Once I get that 2 and 5 years experience, the ASA is definitely my direction. As for the CFA…it's something I've flirted with a long time….who knows maybe some day :). Have you gone on to anything beyond the CPA?

MBA,CMA,CPA, CFF?, ABV?

[Mayo]

Yeah, I get it. Just wanted to shoot it out there as an FYI. I looked into business val as a career and I kept hearing that an ASA was considered the gold standard. CFA just added more to it.

In terms of CFA, I took level 1 and 2. They are super hard IMO. Much more so than the CPA. Still looking to finish it, because I want to be able to say I passed all three.

A bit of inside baseball, but there's a kind of bruhaha that's been brewing in terms of people with ASA, PHD, or CFA credentials versus people with ABV or CVA credentials. Basically, the ABV is allowing more entrants into the market, causing the overall pay to be lower across the field. In addition, there's an argument that the ABV just doesn't require enough expertise to truly serve their clients well enough. So there's accusation that the ABV is bringing the overall quality of the field down.

Others with ASA/CFA/PhD just shrug it off because they feel their level of expertise gives them an edge against the CPA/ABV legal experts. And from what I've heard I tend to agree that a lot of the CPA/ABV people just don't have enough training/experience when compared to the other credentials. Also, CVA is considered a bit of a joke.

As always, experience trumps designations, but in this case there seems to be a pretty strong pattern in general. Of course, this is a generalization, as I'm sure there are plenty of competent individuals on either side of the debate.

Mayo, BBA, Macc

[How many letters do you need]

I appreciate the heads up and I get it. Valuation is a very well guarded specialty, as with any where there is a good amount of money to be had. It's understandable why people with ASA designations don't want it flooded. At the end of the day, as you pointed out, your reputation is your results; especially so in the forensics area. I might continue in consulting or take it elsewhere. I guess my point is while the ABV may be inferior to ASA, it still has lots of value and creates an opportunity to get your feet wet; and ASA also offers a bridge program for it. The more I've thought about it, the more I think there might be an untapped opportunity for somebody to utilize these valuation principles, and ABV is all one would need. At any rate, congrats on levels 1&2. What I've always heard is that that 2 is the hardest; you've come this far may as well get the paper! Good luck.

MBA,CMA,CPA, CFF?, ABV?

[Mayo]

Yup, ABV is probably the best transition from an accounting background.

Mayo, BBA, Macc

[Author]

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