What is Accredited in Business Valuation (ABV)?
– ABV is a specialty credential for certified public accountants (CPAs) who have demonstrated knowledge and experience in valuing entire businesses, business interests, and intangible assets. It is administered by the American Institute of CPAs (AICPA).
Key components (short summary)
– Sponsor: AICPA.
– Who it’s for: CPAs with valuation experience.
– Main requirements: active CPA license, ABV exam (with some credential-based waivers), documented valuation experience, valuation-related continuing education, and annual/recurring fees.
– Maintenance: periodic continuing education and yearly fees.
How the ABV process works — step-by-step
1. Confirm eligibility
– Hold an active, unrevoked CPA license or certificate from the relevant state authority.
2. Meet documented experience
– Accumulate at least 150 hours of business valuation (BV) experience during the five years prior to application. Up to 15 of those hours may be satisfied by completing the AICPA hands‑on valuation case study track.
3. Complete required education for applicants
– Earn 75 hours of valuation‑related continuing professional development (CPD) within the five years before applying.
4. Register and schedule the ABV Examination
– The exam is delivered by computer in two modules. Each module: 3 hours 15 minutes total time (including a 15‑minute break), with 90 multiple‑choice questions per module. Most questions are standalone multiple‑choice; a subset are case study–based.
– Both modules must be passed within 12 months from the date the candidate passes the first module.
– Certain credentials (for example, Accredited Member or Accredited Senior Appraiser of the American Society of Appraisers, CFA, or Canadian CBV) may exempt the candidate from the exam requirement.
5. Apply and pay credential fees
– Applicants pay an application/credential fee and then annual dues to maintain the credential (note: historical figure cited was $380/year as of 2021; check AICPA for current fees).
6. Maintain credential
– Complete ongoing continuing education (holders must meet minimum CPE standards — for ABV holders this has included 60 hours every three years) and keep CPA license current.
Definitions of key terms
– CPA: Certified Public Accountant — a licensed accounting professional.
– Business valuation (BV) experience: work hours spent performing valuation analyses, reports, or related tasks.
– Continuing professional development (CPD) / Continuing professional education (CPE): formal learning activities that maintain and enhance professional competence.
– Case study track: a supervised, practical valuation exercise offered by the AICPA that can count toward a portion of the BV experience requirement.
Checklist for an ABV application
– [ ] Active, unrevoked CPA license.
– [ ] At least 150 hours of BV experience within the past five years (documented).
– [ ] Up to 15 of the 150 hours can come from the AICPA hands‑on case study track (if used).
– [ ] 75 hours of valuation‑related CPD completed within the five years before application.
– [ ] Registered for and passed both ABV exam modules (or confirm a qualifying credential for an exam waiver).
– [ ] Submitted application and paid required fees.
– [ ] Plan for ongoing maintenance: CPE rules (e.g., 60 hours every three years) and annual credential dues.
Worked numeric examples
1) Experience-hours budgeting
– Requirement: 150 BV hours in 5 years → 150 / 5 = 30 hours per year on average.
– If you use the AICPA case study for the optional 15‑hour credit: remaining hours needed = 150 − 15 = 135 → 135 / 5 = 27 hours per year.
2) Continuing education pacing
– Applicant requirement: 75 valuation CPD hours over 5 years → 75 / 5 = 15 hours per year.
– Holder maintenance example: 60 hours every 3 years → 60 / 3 = 20 hours per year average.
3) Fee example (illustrative)
– If annual credential fee = $380 (example reported in 2021): 5‑year cost = 380 × 5 = $1,900 (verify current fees on AICPA website before budgeting).
Exam format at a glance
– Two computer‑based modules.
– Each module: 90 multiple‑choice questions, including case‑study questions; each module time allowance is three hours and fifteen minutes (includes a 15‑minute break).
– Passing window: both modules must be passed within a 12‑month period (starting from when the first module is passed).
Where ABV holders typically work
– Valuation boutiques and business valuation practices.
– Accounting and consulting firms with valuation or transaction advisory services.
– Corporate finance or tax groups that require valuation expertise.
– Litigation support and expert witness engagements.
Practical tips
– Document experience contemporaneously: client, description of valuation task, dates, and hours.
– Track CPE/CPD by course title, sponsor, date, and hours; keep certificates.
– If you hold another valuation credential (ASA/AM, CFA, CBV), contact AICPA early to confirm any examination waivers.
– Budget time to pass both exam modules within 12 months and schedule study accordingly.
Sources
– AICPA — Accredited in Business Valuation (ABV): https://www.aicpa.org/career/accreditation/accredited-in-business-valuation-abv.html
– Investopedia — Accredited in Business Valuation (ABV): https://www.investopedia.com/terms/a/accredited-in-business-valuation-abv.asp
– American Society of Appraisers: https://www.appraisers.org
– Canadian Institute of Chartered Business Valuators (CICBV): https://cicbv.ca
Educational disclaimer
This explainer is for educational purposes only. It summarizes program structure, common requirements, and examples based on publicly available information; it is not personalized advice. Requirements, fees, and policies change over time — always verify current rules and costs directly with the AICPA or relevant credentialing body before applying.