What Is the National Association of Certified Valuators and Analysts (NACVA)?
The National Association of Certified Valuators and Analysts (NACVA) is a U.S.-based professional trade organization for practitioners who perform business valuations, financial forensics, and litigation support. Founded in 1991 and headquartered in Salt Lake City, Utah, NACVA provides education, training, certifications, professional standards, and peer support to valuation and consulting professionals. The group’s motto is “The Authority in Matters of Value.” NACVA also enforces ethical standards for members and offers tools, software, and databases commonly used in valuation practice. (Sources: Investopedia; NACVA)
Key takeaways
– NACVA is a professional trade association focused on business valuation and related services (mergers & acquisitions, litigation support, bankruptcy, IPOs).
– It offers professional credentials (for example, CVA and MAFF) and continuing education for valuation professionals.
– NACVA credentials and processes emphasize education, experience, examination, peer review, and ongoing recertification.
– NACVA claims accreditation by recognized bodies (National Commission for Certifying Agencies (NCCA) and ANSI for some programs).
Primary NACVA certifications (what they mean)
– Certified Valuation Analyst (CVA): Focused on business valuation for consultants, CPAs, and advisors who prepare valuation reports for clients.
– Master Analyst in Financial Forensics (MAFF): Focused on financial forensics and litigation support; requires prerequisites, experience, and a comprehensive exam (Investopedia notes MAFF requires a five‑hour exam).
– Accredited in Business Appraisal Review (ABAR): Historically the highest review credential; ABAR has been discontinued to new applicants (active holders must recertify).
– Certified Business Appraiser (CBA) and Master Certified Business Appraiser (MCBA): Previously high-difficulty credentials that are no longer offered due to low demand.
Note: Certification offerings change over time; always check NACVA’s current certification pages for the latest program availability and requirements. (Sources: Investopedia; NACVA)
Membership types and benefits
NACVA offers multiple membership classifications designed for different career stages and roles:
– Practitioner, Ultimate, Professional, Affiliate, Academician, Government Employee, Student, Legal Professional (different names and tiers may change).
– Typical annual dues range from about $79 to $599, depending on membership classification and level of access.
Benefits commonly include: training programs and conferences, access to publications and databases, online learning, membership in special interest groups (mentoring, pro-bono programs, speakers bureau), and professional networking. (Sources: Investopedia; NACVA)
How do I become a Certified Valuation Analyst (CVA)?
Below is a practical, step-by-step pathway to the CVA credential as commonly described by NACVA and summarized by third-party sources:
Prerequisite review (before applying)
1. Education: Typically a bachelor’s degree in business (or equivalent); an MBA or other advanced degrees can be helpful.
2. Experience: Generally at least two years of experience in business valuation or related fields.
3. Work history: Evidence of having performed a minimum number of business valuations (Investopedia cites “10 or more” valuations as a typical prerequisite). Keep detailed engagement files and valuation reports (redacted for confidentiality) to document experience.
Formal application and fees
4. Apply for the CVA designation and meet application requirements. Pay the CVA designation fee (or join NACVA at the required membership level). Check NACVA for current fee schedules.
Study and exam preparation
5. Study NACVA-provided materials and recommended textbooks. Create a study schedule (see suggested timeline below). Make use of practice exams, review courses, and mentor support groups if available.
Examination
6. Sit for and pass the CVA examination. (Exam logistics — length, format, passing score — are specified by NACVA at the time you apply; verify current exam rules on NACVA’s site.)
Peer review and professional report
7. Complete one or more peer‑reviewed business valuation reports. NACVA requires candidates to submit valuation reports for peer review to demonstrate competence in report writing and valuation methodology.
Maintenance and recertification
8. Maintain active NACVA membership, pay annual dues, and meet continuing education (CE) requirements. NACVA credentials typically require recertification every three years (CE credits, fees, and ethics requirements apply).
How long does it take to become a CVA?
– If you already meet the educational requirement and have the necessary experience and prior valuations, the process can be completed in months (exam prep, application, peer review).
– If you need to accumulate experience or perform the required number of valuations, plan for one to several years. Typical timeline elements:
– Gaining two years’ relevant experience: ~2 years (if starting from scratch).
– Completing 10+ valuation engagements: variable—could take 1–3+ years depending on assignments and workload.
– Exam study and testing: 2–6 months depending on background and study intensity.
– Peer review and administrative processing: additional weeks to months.
Total time therefore ranges from several months (for already-qualified professionals) to multiple years (for newer entrants).
What does a valuation analyst do? (core responsibilities)
– Conduct valuation engagements for businesses, ownership interests, intangible assets, and damages analyses.
– Gather and analyze financial statements, budgets, cash flows, industry data, and market comparables.
– Identify and assess risks, normalize financials, select appropriate valuation approaches (income, market, and asset-based), and apply valuation models (discounted cash flow, multiples).
– Draft valuation reports suitable for the engagement’s purpose (M&A, litigation, tax, ESOPs, buy-sell agreements).
– Provide testimony, expert witness services, and litigation support as needed.
– Maintain documentation, adhere to professional and ethical standards, and keep current with CE and best practices.
Practical checklist and recommended steps (for someone starting now)
1. Self-assess: Do you already have a relevant degree and at least two years’ experience? If not, plan education/career steps to meet these.
2. Gain valuation experience: Seek assignments at accounting or valuation firms, or on-the-job projects that allow you to perform and document full valuations.
3. Document work: Keep detailed, redacted engagement files and at least the minimum number of completed valuation reports required for application.
4. Join NACVA as a member: Choose the membership level appropriate for candidates and pay dues (membership often required to pursue certification).
5. Register for and complete any required preparatory courses (NACVA offers training programs, webinars, and study materials).
6. Study and take the exam: Use NACVA study materials, sample questions, and mentoring or study groups.
7. Prepare peer-reviewed report(s): Follow NACVA’s peer review process and incorporate feedback to demonstrate professional report-writing competence.
8. Maintain certification: Track CE requirements, renew membership, and remain in compliance with NACVA ethics and recertification rules.
Tips for success
– Keep a valuation file checklist for each engagement (engagement letter, source documents, working papers, model assumptions, sensitivity analyses).
– Use valuation software and databases (market comps, transaction databases, industry data) to support conclusions.
– Build a mentor network: join NACVA groups, local chapters, or find experienced CVAs who can guide you through the peer-review process.
– Practice report writing and oral presentation skills—clear, defensible reports and the ability to explain methodologies are critical in litigation and transaction settings.
– Stay current: attend NACVA conferences and webinars to learn evolving best practices in valuation standards and forensic techniques.
Limitations and program changes to note
– NACVA has discontinued some credential paths (Investopedia notes ABAR is not accepting new members, and CBA/MCBA ceased being offered). Always verify current program availability on NACVA’s website.
– Specific eligibility details, exam formats and lengths, fee amounts, and CE requirements change over time—use NACVA’s official materials for the most current rules.
Where to get official information
– NACVA official website — certification pages, membership classifications, qualifications, and application instructions (search NACVA.org or NACVA.com for current pages).
– Investopedia summary article on NACVA (useful overview and third-party perspective): https://www.investopedia.com/terms/n/national-association-of-certified-valuation-analysts.asp
Primary source references
– Investopedia, “National Association of Certified Valuators and Analysts (NACVA)” (Dennis Madamba) — overview of NACVA history, certifications, membership and requirements.
– NACVA official pages: NACVA certifications, membership classifications, CVA qualifications, and application instructions (consult NACVA’s site for up-to-date requirements and application materials).
If you’d like, I can:
– Draft a sample study schedule for the CVA exam based on your current experience level.
– Create a template checklist for documenting valuation engagements to support the peer-review requirement.
– Compare NACVA’s CVA path to other valuation credentials (if you’re considering alternatives).