Accredited In Business Valuation (ABV) Guide: Requirements and Exam Details

What Does Accredited in Business Valuation Mean?

Accredited in Business Valuation (ABV) is an AICPA credential for CPAs who specialize in valuing businesses. Candidates apply, pass the exam, and meet experience requirements, and those who earn the designation often see improved career prospects and credibility. Maintaining it requires continued work experience and ongoing education.

Understanding the Accredited in Business Valuation Process

The Accredited in Business Valuation credential is awarded to CPAs who demonstrate considerable knowledge, skill, and business valuation experience. The study program to become an ABV covers the basic business valuation process, professional standards, qualitative and quantitative analysis, valuation analysis, and other related topics, such as financial reporting and litigation.

Key Requirements for ABV Certification

Candidates seeking ABV accreditation must have a valid (and unrevoked) CPA license or certificate issued by the appropriate state authority. They must also pass the ABV Examination, with some exceptions. For example, this requirement is waived in the case of AM (Accredited Member of the ASA) and ASA (Accredited Senior Appraiser) credential holders of the American Society of Appraisers, CFA (Certified Financial Actuary) holders, and CBV (Chartered Business Valuator) credential holders of the Canadian Institute of Chartered Business Valuators.

Every three years, ABV professionals must complete 60 hours of continuing professional education. They must also pay an annual fee of several hundred dollars.

Business and Education Criteria for ABV Candidates

Business Experience

ABV candidates must have obtained a minimum of 150 hours of BV experience within the five years preceding the credential application date. Candidates may also apply a maximum of 15 experience hours by completing the hands-on business valuation case study track at the AICPA Forensic and Valuation Services Conference.

Education Requirement

ABV candidates must complete 75 hours of valuation-related continuing professional development (CPD). All hours must be obtained within the 5-year period preceding the date of the ABV application.

Navigating the ABV Examination Process

The ABV Exam is conducted by computer and consists of two parts. Both parts must be passed in 12 months (based on passing the first part) to receive ABV credit.

Applicants are given three hours and 15-minutes to complete each section of the test, including a 15-minute break. The exam consists of 90 multiple-choice questions per module, and much of the exam are discrete multiple-choice questions (78 in total). A dozen questions are case studies with accompanying multiple-choice answers. These questions are meant to test a candidate's analytical aptitude and apply valuation theory and methodology.

The Bottom Line

Earning the ABV credential requires meeting education and experience standards along with passing the exam, though holders of certain designations, such as the ASA or CFA, may qualify for an exam waiver.

Maintaining the designation calls for 60 hours of continuing professional development every three years. For many CPAs, the ABV offers added career opportunities and a stronger professional reputation.