National Business Valuation

Professional Standards

 

A Certified Valuation Analyst (CVA) is the professional credential issued by the National Association of Certified Valuators and Analysts.

 

This designation is the only valuation credential accredited by the National Commission for Certifying Agencies® (NCCA®).

 

This certification provides the analyst with a group of predetermined standards when valuing a privately held business. These standards are consistent with the Internal Revenue Service's (IRS) definition of fair market value (FMV). 

 

Internal Revenue Service’s Revenue Ruling 59-60 specifically requires the use of fair market value as a standard of value for the general consideration of a future sale. Revenue Ruling 59-60 defines fair market value as the:

 

“…price at which property (business) would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts. Court decisions frequently state in addition that the hypothetical buyer and seller are assumed to be able, as well as willing, to trade and to be well informed about the property and concerning the market for such property.”

 

Therefore, this standard of value will be applied to all Conclusions of Value and Opinions of Value generated by National Business Valuation.