Careers in Valuation

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.

  1. Valuation Analyst
  2. Valuation Manager
  3. Director Valuation
  4. Partner /CEO
Career in Valuation

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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 :

The valuation includes finding the fair value of shares, ESOPS, Business, Tangible AssetsTangible AssetsAny physical assets owned by a firm that can be quantified with reasonable ease and are used to carry out its business activities are defined as tangible assets. For example, a company's land, as well as any structures erected on it, furniture, machinery, and equipment.read more, Intangible AssetsIntangible AssetsIntangible Assets are the identifiable assets which do not have a physical existence, i.e., you can't touch them, like goodwill, patents, copyrights, & franchise etc. They are considered as long-term or long-living assets as the Company utilizes them for over a year. read more, 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 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

Who is a Valuation Analyst?

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

Valuation Analyst – Job Description
ResponsibilitiesResponsible for building detailed financial models with regards to the financials of the asset and do the peer group research as well.
DesignationValuation analyst
Actual RoleWork 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 CompaniesDeloitte, Grant Thompson, E&Y, KPMG, PWC, Duff & Phelps, Matt Mcdonald, BDO are some of the top companies in the valuation business in the world.
SalaryThe median annual salary for a valuation analyst will be between $60,000-$90,000.
Demand & SupplyHighly demanded profile since it requires extensive sector expertise and knowledge to carry out the assignment in the best possible manner.
Education RequirementCFA/CPA / MBA/ Valuation Expert from Tier -1 Universities with at least 5-10 Yrs of Exp.
Recommended CoursesCPA/ MBA / CFP/ CFA
PositivesChance to work on multiple valuation cases thus building a strong profile in the early stages of the analyst career.
NegativesExtensive data crunching and working on excel sheets can be boring.

Career #2 – Valuation Manager

Who is a Valuation Manager?

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

Market Research Analyst – Job Description
ResponsibilitiesResponsible for making the analyst work on multiple valuation assignments and complete the task in due time.
DesignationManager – Valuations
Actual RoleManages 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 CompaniesDeloitte, Grant Thompson, E&Y, KPMG, PWC, Duff & Phelps, Matt Mcdonald, BDO are some of the top companies in the valuation business in the world.
SalaryThe 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 & SupplyVery 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 RequirementCFA/CPA / MBA from Tier -1 Universities with at least 10-15 yrs of experience.
Recommended CoursesCFA/CPA/ MBA/CFP
PositivesExtensive knowledge of the multiple sectors in the industry and keep up the breast of the recent challenges in the valuation industry.
NegativesLong 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

Who is a Valuation Director?

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 dept as well as the team.

Valuation Director – Job Description
ResponsibilitiesResponsible for generating business for the company by sourcing fresh mandates from the market.
DesignationDirector – Business Development
Actual RoleWorks closely with the valuation team to get things done at the lowest cost.
Top CompaniesDeloitte, Grant Thompson, E&Y, KPMG, PWC, Duff & Phelps, Matt Mcdonald, BDO are some of the top companies in the valuation business in the world.
SalaryThe median annual salary for a general manager can be anywhere between $ 2,00,000 – $3,00,000.
Demand & SupplyHighly demanded profile since it requires a high degree of technical skills and the ability to generate business for the organization.
Education RequirementCFA/CPA/MBA/Valuation expert with 20+ yrs of exp in the valuation field.
Recommended CoursesCFA/CPA/MBA/Valuation Expert.
PositivesChance to value multiple asset classes which will be helpful in the long-term career.
NegativesConstant Tele Calling can be boredom.

Career #4 – Partner /CEO

Who is a Valuation 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
ResponsibilitiesTo 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.
DesignationPartner / CEO – Valuation
Actual RoleIs to spearhead the valuation vertical of the organization by conducting seminars, events to sell the company’s valuation profile strength.
Top CompaniesDeloitte, Grant Thompson, E&Y, KPMG, PWC, Duff & Phelps, Matt Mcdonald, BDO are some of the top companies in the valuation business in the world.
SalaryThe median annual salary for the same can be anywhere between $ 3,00,000 to $5,00,000.
Demand & SupplyHighly demanded role, since the entire business of the company solely depends upon one single person and his relationships in the market.
Education RequirementCFP/CPA / MBA from Tier -1 Universities with at least 20-25 Yrs of Exp.
Recommended CoursesCPA/MBA/CFA
PositivesManagerial & strategic role in the company to keep the thing going.
NegativesSourcing 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 financeCareers In The FinanceA appropriate degree, such as a B. Com, CPA, or MBA, is required to pursue a career in finance. Then one can choose from a variety of financial careers such as equity analyst, investment banking, asset management, risk management, corporate finance, and so on.read more 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 most cream jobs in the industry because of the knowledge element.

Recommended Articles

This has been a guide to Valuation Careers. Here we provide the list of top 4 Business Valuation job options, description & paths, including Valuation Analyst, Valuation Manager, Partner/CEO, etc. You may also have a look at these Career articles below –

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