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CFA VS CPA for Business Valuations

gwoods wrote:

Awesome!  That opens up some possibilities.  If I make it, I suspect will be the only CFA financial planner in my region.  The other CFA is a University Professor.  What is your role?

Financial/investment advisor in a single family office

" Wiley's prep material was a huge part of my success." - Lindsey G., USA

Rasec wrote:
Would anyone like to comment on which program is better for business valuations? I know ASA is the major, but what about the CFA VS the CPA in the process of business valuation, intangible asset impairment testing, goodwill-purchase price allocations, fairness of opinion, etc. Thanks a lot

AF might not be the right place to ask this question….we tend to be biased towards CFA ;)

It ain't what you don't know that gets you in trouble. It's what you know for sure that just ain't so.

TrackSuitInvestor wrote:

Rasec wrote:
Would anyone like to comment on which program is better for business valuations? I know ASA is the major, but what about the CFA VS the CPA in the process of business valuation, intangible asset impairment testing, goodwill-purchase price allocations, fairness of opinion, etc. Thanks a lot

AF might not be the right place to ask this question….we tend to be biased towards CFA ;)

Good point.  I posed the question to the member forum at the society of Financial Service Professionals site. It’s multi-discipline group with attorneys, cpas, cfas, clus, and more.  Also, the forum isn’t anonymous. Unfortunately they’re not as active as everyone at this site. So, it may take a few weeks to get a response. Here’s the question:

Hello everyone, I’m curious about where most people go to get business valuations for business continuation planning. I’m studying for the CFA and in another forum, on the other side of the internet, they believe CFAs are the optimal choice. I say, it depends on the goals of the owners and whether it’s for tax, litigation, acquisitions & sales of ownership interests, etc. What do you guys say, and what role would a CFA have in this process, if any? Is this something mostly for CPAs or some other form of appraiser? This comes up as I’m completing my coursework for my CLU. My exam is in 2 weeks. This has nothing to do with the exam, I’m just thinking about my business 5 years from now.

Financial Planner
BBA (Finance & International Business) 1998,
MBA (With a Global Perspective) 2011,
ChFC 2018, Completed CLU program 11/30/18
Owns an Independent RIA/Insurance Agency
Series 65, Life, Annuities, Health (Expired 6,63)

Have to laugh at the strong opinions held based on designation …..experience trumps all.

CFAs certainly have the modeling and larger business valuation context and CPAs may be more comfortable in the various book adjustments that must be made as part of the process of coming up with a sustainable income or cash flow representative of value,  they may also buy more experienced in how tax treatments and sharing of benefits and corporate structuring can impact the final transaction.

The right person is ultimately based on the actual valuation experience and success and the specific circumstances of the transaction / opportunity in question.