Business valuation is the process of determining the economic value of a business or company. Often a business valuation is needed for purposes of determining sale value, establishing partner ownership, or in litigation or divorce proceedings. For example, the value may be used by financial market participants to determine the price they are willing to pay or receive to effect a sale of a business. The same valuation tools are often used to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, or establish a formula for estimating the value of partners' ownership interest for buy-sell agreements. There are also many other business and legal purposes including shareholders disputes, divorce litigation and estate valuation.
The Accredited in Business Valuation (ABV) Credential is exclusively granted by the AICPA to qualified CPAs who meet requirements which include passing the ABV Examination and meeting valuation-related business experience and education requirements. CPAs with the ABV designation are experienced with the business valuation process, professional standards, qualitative and quantitative analysis, valuation analysis and other related topics such as financial reporting and litigation.