What is a valuations executive and what do they do?
Valuations executives are responsible for assessing how much a business, property, commodity or any asset is worth. Professionals in this field are skilled at using a variety of methods of analysis to provide precise valuation figures and the accuracy and independence associated with this information is highly valued.
Valuations executives are responsible for valuation engagements from start to finish and they work across a wide client portfolio. Responsibilities may include:
- Delivering clear, concise and robust valuation reports that are accessible to non-technical readers
- Providing independent expert / fair value reports
- Providing M&A valuation reports
- Purchase price allocations
- Intangible asset and intellectual property valuations
- Providing valuations for forensic and litigation purposes
Why are they important?
- There are a variety of situations in which Valuations Executives add value including:
- When a business or individual is considering buying or investing in a particular asset, its valuation is necessary to ensure that the right price is paid
- When there is property and income tax to be paid, which requires the valuation of real estate property, as well as other assets
- Where two companies are merging, or if a company is to be taken over, asset valuation is important because it helps both parties assess the business
- As a means for comparing companies within the same sector
Skills needed for this role
Roles are often highly commercial and require excellent relationship skills. In addition, strong Excel skills are needed for modelling purposes as well as an analytical approach with the ability to communicate information across a wide stakeholder base.
Strategic Professional Options examinations relevant for this role
Career opportunities presented by this role
Opportunities exist both within practice (larger accountancy firms have substantial teams dedicated to this area) and boutique advisory firms (providing an ideal first move out of practice). This is an exciting and challenging area of work and junior level roles are ideal for newly qualified accountants looking to build on their commercial skills.
High level competencies required include:
Advisory and consultancy
A. Gathers and understands financial and non-financial information to develop complete knowledge of the client business and the environment in which it operates.
B. Provides expert advice that will add value to the business and gain advantage.
C. Identify and advise on business partnering to develop strategic relationships to create opportunities, improve performance and solve business problems.
D. Prepare and present business plans and advise on the actions to implement these plans.
Corporate and business reporting
A. Prepares financial statements, corporate financial and integrated reports for external stakeholders using appropriate technology.
B. Leads effective decision making through analysing, evaluating and communicating performance and position of entities.
C. Prepares financial statements for groups of entities using appropriate technologies.
D. Monitors, critically evaluates, and advises on the relevant accounting standards, regulations, conceptual and financial reporting frameworks.
A. Links developments in global trade, markets, business practices and the economic environment to required improvements in the financial and risk management of an organisation.
B. Advises on business asset valuations, capital projects and investments using appropriate analytical qualitative and quantitative techniques.
C. Identifies, evaluates and advises on alternative sources of business finance and different ways of raising finance.
D. Communicates and advises on the impact on financial decision making on current developments in regulation, governance and ethics.
E. Assesses and advises on appropriate strategies to manage business and organisational performance regarding business and finance risk and effectively communicates the impact.
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