Business valuer

Business valuers provide valuation assessements of business entities, stock and other securities and intangible assets, in order to assist their clients in strategic decision-making procedures such as mergers and acquisitions, litigation cases, bankruptcy, taxation compliance and general restructuring of the companies.

The following job titles also refer to business valuer:

chartered appraiser
business evaluator
accredited business appraiser
business valuation specialist
chartered business valuator
valuator of businesses
business valuation consultant
business valuation analyst
business valuers
businesses evaluator
business appraiser
business valuation officer
businesses valuator
business valuator
valuator of business

Bachelor’s degree is generally required to work as business valuer. However, this requirement may differ in some countries.

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

• the nature of the work performed in an occupation in relation to the characteristic tasks and duties
• the level of formal education required for competent performance of the tasks and duties involved and
• the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Business valuer is a Skill level 4 occupation.

These occupations, although different, require a lot of knowledge and skills similar to business valuer.

investment manager
corporate treasurer
dividend analyst
corporate investment banker
brokerage firm director

These occupations require some skills and knowledge of business valuer. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of business valuer with a significant experience and/or extensive training.

This knowledge should be acquired through learning to fulfill the role of business valuer.

Mergers and acquisitions: The process of joining together separate companies and relatively equal in size, and the purchase of a smaller company by a bigger one. The financial deals, the legal implications, and the consolidation of financial records and statements at the end of the fiscal year.
Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Business valuation techniques: The processes to valuate the worth of the assets of the company and the value of the business following techniques such as asset-based approach, business comparison, and past earnings.
Financial markets: The financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.
Strategic planning: The elements defining the foundation and core of an organisation such as its mission, vision, values, and objectives.
Value-added tax law: Taxes imposed on the purchase prices of goods and the legislation that governs this activity.
Stock market: The market in which shares of publicly held companies are issued and traded.
Market pricing: Price volatility according to market and price elasticity, and the factors which influence pricing trends and changes in the market in the long and short term.
Tax legislation: Tax legislation applicable to a specific area of specialisation, such as import tax, government tax, etc.
Security of assets legislation: The current relevant legislation, regulations and codes of practice in the field of protecting private and public assets.

These skills are necessary for the role of business valuer.

Perform stock valuation: Analyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.
Analyse business plans: Analyse the formal statements from businesses which outline their business goals and the strategies they set in place to meet them, in order to assess the feasibility of the plan and verify the business’ ability to meet external requirements such as the repayment of a loan or return of investments.
Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
Apply strategic thinking: Apply generation and effective application of business insights and possible opportunities, in order to achieve competitive business advantage on a long-term basis.
Perform asset recognition: Analyse expenditures to verify whether some may be classified as assets in the case where it is likely that the investment will return profit over time.
Value properties: Examine and evaluate land and buildings in order to make valuations about their price.
Trade securities: Buy or sell tradable financial products such as equity and debt securities on your own account or on behalf of a private customer, corporate customer or credit institution.

This knowledge is sometimes, but not always, required for the role of business valuer. However, mastering this knowledge allows you to have more opportunities for career development.

Pricing strategies: The techniques, theories, and commonly accepted strategies regarding pricing of goods. The relation between pricing strategies and outcomes in the market such as profitability maximisation, deterrence of newcomers, or increase of market share.
Intellectual property law: The regulations that govern the set of rights protecting products of the intellect from unlawful infringement.
Business law: The field of law concerned with the trade and commerce activities of businesses and private persons and their legal interactions. This relates to numerous legal disciplines, including tax and employment law.
Insolvency law: The legal rules regulating the incapacity to pay debts when they fall due.
Property law: The law and legislation that regulates all the different ways to handle property, such as the types of property, how to handle property disputes and property contract rules.
Investment analysis: The methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to guide decision on investment.
Public offering: The elements comprised in public offerings of companies in the stock market such as determining the initial public offering (IPO), the type of security, and the timing to launch it in the market.

These skills and competences are sometimes, but not always, required for the role of business valuer. However, mastering these skills and competences allows you to have more opportunities for career development.

Advise on bankruptcy proceedings: Analyse the bankruptcy case in order to guide guide and advise clients on the formalities, procedures and the actions that can ameliorate the losses.
Advise on tax planning: Advise on appropriate strategies to include taxes in the overall financial plan in order to reduce the tax load. Advise on questions related to tax legislation and provide advise on the possible implications that decisions in financial matters can cause in a tax declaration.. Advise on questions concerning things such as the creation of a company, investments, recruitments, or company successions.
Assist with litigation matters: Provide assistance with the management of litigation matters, including document collection and investigation.
Liaise with financiers: Liaise with people willing to finance the project. Negotiate deals and contracts.
Advise on property value: Provide advise to those that own a property, professionals in real estate, or prospective clients in real estate on the current monetary value of a property, the potential of development in order to increase the value, and other relevant information concerning the value of the in the future developments of the real estate market.
Use consulting techniques: Advise clients in different personal or professional matters.
Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
Estimate value of used goods: Examine items owned by an individual in order to determine its current price by assessing damage and taking into account the original retail price and the current demand for such items.
Negotiate on asset value: Negotiate with asset owners or parties involved in handling the asset on the monetary value of the asset for selling, insurance, usage as collatoral, or other purposes, in order to secure the most financially beneficial agreement for the client.
Disseminate information on tax legislation: Provide advise on the possible implications for companies or individuals on decisions regarding tax declaration based on tax legislation. Advise on the favourable tax strategies that could be followed depending on the needs of the client.
Compare property values: Obtain information on the value of properties comparable to a property which is in need of valuation in order to make more accurate appraisals and assessments, or to set or negotiate the price at which the property can be sold or leased.
Create a financial report: Finalise project accounting. Prepare an actual budget, compare the discrepancy between the planned and actual budget, and draw final conclusions.
Manage brand assets: Oversee brands as assets in order to maximise their value.
Liaise with managers: Liaise with managers of other departments ensuring effective service and communication, i.e. sales, planning, purchasing, trading, distribution and technical.
Determine resale value of items: Examine items to search for any damages or signs of deterioration and take into account the current demand for used goods of the item’s nature in order to set a likely price at which the item can be resold, and to determine the manner in which the item can be sold.

2412 – Financial and investment advisers

 

 

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References

1. Business valuer – ESCO