If you're looking to become a Certified Business Valuation professional, the ABV exam is an essential step in achieving your goal. Accredited in Business Valuation (ABV) is a professional certification that demonstrates your proficiency in business valuation and your commitment to the profession. This exam is designed to test your knowledge and skills in the areas of financial analysis, valuation, and consulting. In this article, we will cover the exam details, exam objectives, who should take the exam, prerequisites, qualifications, and related books to help you prepare for the ABV exam.
Exam Objectives:
- Understand the business valuation process
- Perform financial analysis and interpret financial statements
- Apply valuation methods and techniques
- Understand the ethical and professional standards of the business valuation profession
- Develop and communicate effective valuation opinions and reports
The exam covers a broad range of topics related to business valuation. It is divided into two sections, each consisting of 50 multiple-choice questions. The first section focuses on general knowledge and concepts related to business valuation, while the second section is more focused on specific valuation techniques and methods. You will have four hours to complete the exam, which is administered in a computer-based format.
Exam Details:
- Cost: $595 for AICPA members, $795 for non-members
- Passing Mark: 75
- Time: 4 hours
- Delivery Method: Computer-based
- Format: Multiple-choice
Who Should Take the Exam?
The ABV exam is designed for professionals who work in the field of business valuation. This includes accountants, financial analysts, valuation consultants, investment bankers, and other professionals who work with businesses to assess their value. If you're interested in becoming a Certified Business Valuation professional, the ABV exam is an essential step in achieving your goal.
Prerequisites and Qualifications:
To take the ABV exam, you must meet the following requirements:
- Hold a valid and unrevoked CPA license
- Complete 75 hours of valuation-related education and training
- Have at least 1,500 hours of business valuation experience within the previous five years
Related Books:
There are several books that can help you prepare for the ABV exam:
- Valuation: Measuring and Managing the Value of Companies by McKinsey & Company
- Financial Valuation: Applications and Models by James R. Hitchner
- Business Valuation: Discounts and Premiums by Shannon P. Pratt
- Cost of Capital: Applications and Examples by Shannon P. Pratt
- Guide to Business Valuations by Jay E. Fishman
Preparing for the ABV exam takes time and dedication, but it's well worth the effort. With the right preparation and study materials, you can pass the exam and become a Certified Business Valuation professional.