Careers in Valuation

Publication Date :

04 Oct, 2019

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Table Of Contents

List of Top 4 Careers in Business Valuation

Below mentioned are some of the Business Valuation Career Roles that a person can reach in his career.

List of Top 4 Careers in Business Valuation

Overview of Valuation Careers

Valuation refers to determining the present value or the future value of an asset in terms of the future cash flows of the same. It is an analytical tool to determine the fair value of the tangible, intangible, and financial assets of the company required for raising funds, mergers, and acquisitions, buy out, or in the case of liquidation.

There are various techniques used to do the valuation required for multiple purposes. Some of those are listed below :

Discounted Cash Flow: DCF measures the Estimated Cash Flow from the Asset to be generated in the future and evaluates the Present Value of the Same by using the Correct Discounting Factor.
Comparable Companies: It measures the PE Multiples of the Comparable Companies in the Sector to arrive at the most probable value of the Asset.
Net Asset Value Method: Net Asset value is a formula-driven methodology used to work out the Value of the Business by Asset-Liability method. Ie. Assets – Liabilities. It gives the Fair Value of the Business.

The valuation includes finding the fair value of shares, ESOPS, Business, Tangible Assets, Intangible Assets, etc. Each type of Valuation is evaluated by different methods that will suit the purpose. Since it requires extensive expertise in the field, the company hires valuation experts in their area. For example, To Value a Mining Company, a Candidate who has immense technical knowledge in the mining profession would be preferred as the technicality in the assignment will play a significant role.

Hence the Valuation job is one of the most crucial departments of any Investment Bank since it is the first stage in the investment process.

Career #1 - Valuation Analyst

Valuation analysts analyze the asset and find the fair valuation of the same.

Valuation Analyst - Job Description

Responsibilities	Responsible for building detailed financial models with regards to the financials of the asset and doing the peer group research as well.
Designation	Valuation analyst
Actual Role	Work on complex financial models and work out the valuation by applying multiple techniques to find the median that can be used as an approximate value of the asset.
Top Companies	Deloitte, Grant Thompson, E&Y, KPMG, PWC, Duff & Phelps, Matt McDonald, BDO are some of the top companies in the valuation business in the world.
Salary	The median annual salary for a valuation analyst will be between $60,000-$90,000.
Demand & Supply	Highly demanded profile since it requires extensive sector expertise and knowledge to carry out the assignment in the best possible manner.
Education Requirement	CFA/CPA /MBA/Valuation Expert from Tier -1 Universities with at least 5-10 Yrs of Exp.
Recommended Courses	CPA/MBA /CFP/CFA
Positives	Chance to work on multiple valuation cases thus building a strong profile in the early stages of the analyst career.
Negatives	Extensive data crunching and working on excel sheets can be boring.

Career #2 - Valuation Manager

He is the one who will oversee the work of the valuation analyst to frame an opinion.

Market Research Analyst - Job Description

Responsibilities	Responsible for making the analyst work on multiple valuation assignments and complete the task in due time.
Designation	Manager – Valuations
Actual Role	Manages a team of analysts and reports directly to the director of the valuation vertical with regards to the computations and complexity of work along with the number of man-hours spent on the assignment.
Top Companies	Deloitte, Grant Thompson, E&Y, KPMG, PWC, Duff & Phelps, Matt McDonald, BDO are some of the top companies in the valuation business in the world.
Salary	The median annual salary for an elite relationship manager can be anywhere between $1,00,000 to $1,50,000 since it is a professional role.
Demand & Supply	Very high demand for the role since it requires team handling skills and extensive knowledge of the subject along with sector expertise to guide the analyst well.
Education Requirement	CFA/CPA/MBA from Tier -1 Universities with at least 10-15 yrs of experience.
Recommended Courses	CFA/CPA/MBA/CFP
Positives	Extensive knowledge of the multiple sectors in the industry and keep up the breast of the recent challenges in the valuation industry.
Negatives	Long working hours and high data crunching and financial modeling since he is responsible for all the work done by the analyst.

Career #3 - Director Valuation

He is the one who leads the valuation department in the organization and reports to the Partner/CEO of the company about the performance of the department as well as the team.

Valuation Director - Job Description

Responsibilities	Responsible for generating business for the company by sourcing fresh mandates from the market.
Designation	Director – Business Development
Actual Role	Works closely with the valuation team to get things done at the lowest cost.
Top Companies	Deloitte, Grant Thompson, E&Y, KPMG, PWC, Duff & Phelps, Matt McDonald, BDO are some of the top companies in the valuation business in the world.
Salary	The median annual salary for a general manager can be anywhere between $ 2,00,000 – $3,00,000.
Demand & Supply	Highly demanded profile since it requires a high degree of technical skills and the ability to generate business for the organization.
Education Requirement	CFA/CPA/MBA/Valuation expert with 20+ yrs of exp in the valuation field.
Recommended Courses	CFA/CPA/MBA/Valuation Expert
Positives	Chance to value multiple asset classes, which will be helpful in the long-term career.
Negatives	Constant Tele Calling can be boring.

Career #4 - Partner/CEO

He is the one who leads the valuation vertical in the organization and is responsible for generating strategic tie-ups in the market across industries and verticals.

Partner/CEO - Job Description

Responsibilities	To drive the strategic vision of the company and make sure that the organization continues to get business assignments from the market on a periodic basis.
Designation	Partner/CEO – Valuation
Actual Role	Is to spearhead the valuation vertical of the organization by conducting seminars, events to sell the company’s valuation profile strength.
Top Companies	Deloitte, Grant Thompson, E&Y, KPMG, PWC, Duff & Phelps, Matt McDonald, BDO are some of the top companies in the valuation business in the world.
Salary	The median annual salary for the same can be anywhere between $ 3,00,000 to $5,00,000.
Demand & Supply	Highly demanded role, since the entire business of the company solely depends upon one single person and his relationships in the market.
Education Requirement	CFP/CPA/MBA from Tier -1 Universities with at least 20-25 Yrs of Exp.
Recommended Courses	CPA/MBA/CFA
Positives	Managerial & strategic role in the company to keep the thing going.
Negatives	Sourcing valuation assignments is very difficult in today’s scenario since people will stop valuing their business in case of slow growth in the economy.

Conclusion

Valuation Job is one of the most exciting careers in the finance domain since it is a dynamic profile with extensive exposure to the various valuation techniques. Each assignment is different since the sector comes into play. To execute any valuation assignment, you need to have the required expertise & the technical skills to carry out the same effect.

In the case of valuation of Tangible assets, the candidate can work in any valuation companies who hire people on a case to case basis as and when the assignment is sourced, and work needs to be done. Hence it can be taken as a Freelancing Job also as the Candidate will be called to offer his professional services concerning that specific assignment for which there can be an agreed-upon fee-sharing ratio as well.

Thus, the Business Valuation career is one of the creamiest jobs in the industry because of the knowledge element.