The characteristics of the services to be certified by the EU Certification Mark
The EU Certification Mark certifies that the services provided under the certification mark CERTIFIED VALUATION ANALYST (CVA) serve to advise other professionals, prospective clients, and the community at large that the certificant has satisfied the NACVA’s rigorous standards of professionalism, expertise, objectivity, and integrity in the field of business valuation.
The examination and recertification process is designed to ensure a valuation practitioner who earns the CERTIFIED VALUATION ANALYST (CVA) certification has the requisite skills and ethics to uphold the highest standard for competent practice in the business valuation profession. Individuals qualified to earn the title CERTIFIED VALUATION ANALYST (CVA) are individuals with business degrees that work in a variety of business settings. CERTIFIED VALUATION ANALYST (CVA) certified businesses use established standards to estimate the economic value of businesses for purposes related to business purchases and sales, as well as disputes related to divorce litigation, taxes, partners’ ownership interests, contested estates, and other purposes.
Valuing a business is often compared to valuing a piece of real estate except it is more complex in that the methodology not only requires a valuator to look at comparable sales but to also make projections based on a determination of the Cost of Capital, normalizing and then projecting earnings, addressing considerations for lack of marketability and if the interest being valued is a minority interest, applying/factoring-in a minority interest discount. A valuator is expected to be thoroughly knowledgeable on the national, local, and industry specific economics and prognosis for the future. Valuation reports address everything the valuator has taken into consideration and quite typically are 100 pages or more in length. The most common use of valuation services is for tax purposes, second to that is marital divorce, and beyond that are at least a dozen or so other reasons.
Certification qualifications and skills are tested and supervised through a proctored exam using approved testing locations, methods, etc. Every three years designees must go through a recertification process to demonstrate they are active and current on industry developments. If recertification requirements are not met, the certification is placed on inactive status and the individual is notified of this change in status and that they can no longer use the CERTIFIED VALUATION ANALYST (CVA) Mark in any medium until they have complied with recertification requirements.
The NACVA also regularly monitors use by inactive status designees and if it is found that an individual is using the credential, they are subject to disciplinary action which could result in losing their designation/mark altogether.
The conditions governing the use of the EU Certification Mark, including sanctions
A person authorised to use the CERTIFIED VALUATION ANALYST (CVA) mark is known as an 'Authorised User'. The Authorised User must first obtain the right to call themselves a CERTIFIED VALUATION ANALYST (CVA) by passing our exam and meeting certain prerequisites (see below), which require a foundation of experience and education. A copy of which can be found at https://www.nacva.com/cvaqualifications. After obtaining certification, they must recertify every three years. This allows them to display the CERTIFIED VALUATION ANALYST (CVA) after their name and in their resume.
Fees are to be paid in connection with the use of the EU Certification Mark. There are annual and tri-annual recertification fees required to using the CERTIFIED VALUATION ANALYST (CVA) Mark, and as noted above, the fees are reduced for non-members.
The prerequisites to using the CERTIFIED VALUATION ANALYST (CVA) Mark are a foundation of experience and education, passing the proctored multiple-choice exam, and proving a level of experiential knowledge by taking and passing a sample case study which involves preparing a full business valuation report on a fictitious company. Candidates can by-pass the case study by submitting and passing an actual business valuation prepared for a real-world client.
Once all certification requirements have been successfully met, candidates will receive written notification of their certification status. Once this notification has been received, designees may use the certification mark as permitted by NACVA.
Use of the CERTIFIED VALUATION ANALYST (CVA) mark is limited to only those individuals holding valid certification. Candidates who pass the examination and meet all requirements may display the mark CERTIFIED VALUATION ANALYST (CVA) after their name, display their certificate, and identify themselves as a “CERTIFIED VALUATION ANALYST (CVA)”. The CERTIFIED VALUATION ANALYST (CVA) certification mark may be used only in connection with a certified individual and not with any company or group.
The use of the CERTIFIED VALUATION ANALYST (CVA) certification mark, except as permitted by this policy, requires written authorization by NACVA. Individuals that fail to maintain certification, or whose certification is suspended or revoked, must immediately discontinue use of the designation and are prohibited from stating or implying that they hold the certification.
The Ethics Oversight Board ('EOB') is charged with the monitoring of NACVA’s membership and certificants with regards to professional standards. The EOB’s responsibilities include creating policies for educating, monitoring, and enforcing compliance. The EOB’s duties also include facilitating awareness and enhancing the understanding of NACVA’s Professional Standards, and when necessary, investigating and determining whether a member and/or certificant has violated NACVA’s Professional Standards. EOB determinations, including the Board’s decision and sanction (if any), will be forwarded to a subgroup of four individuals—two voting representatives from the Credentialing Commission plus two voting representatives from the Ethics Appeal Board ('EAB'). The subgroup is empowered to either ratify the decision of the EOB or require the EOB to revisit the matter and vote again. Alternatively, the subgroup can defer the matter to the EAB who can elect to close the case or they can ask the EOB to revisit the matter and vote again. Decisions made by the subgroup may be submitted to NACVA’s attorney for approval if the gravity of such decision so warrants. Appeals are directed to the NACVA Board of Directors for a final determination. Any recommendations and issues affecting NACVA’s Professional Standards should be submitted, preferably in writing, directly to the Standards Board Chair.
Certified individuals may not make misleading, deceptive, or confusing statements regarding their certification status. Certificants may not suggest that they have expertise outside of the scope of their professional credentials and training.
Incidents of alleged misuse of the name and/or logo by a certificant or candidate will be investigated by NACVA and referred to the EOB for action. Individuals who are found to be in violation of this policy may be subject to disciplinary action under the disciplinary policy. A copy of the EOB’s Policies and Procedures Manual can be found on NACVA’s website at www.NACVA.com.