By Chrissie A. Powers, CPA/CFF, CFE, CVA
As a business valuator, we are often asked by retaining counsel to review the opposing expert's business valuation ("BV") report. Up until recently, those valuation opinions were rendered by valuators without any formal framework or guidance for reviewing the BV report. Effective August 1, 2015, the National Association of Certified Valuators and Analysts ("NACVA") added Business Valuation Review Standards to their organization's Professional Standards. All valuators, who are members of NACVA, must now comply with the Review Engagement Development and Reporting Standards. However, there is a litigation reporting exemption for valuations performed for court.
NACVA defines Business Valuation Review as "the act or process of developing and communicating a member's opinion regarding the credibility of the work product of another valuation analyst." It is important to note that the Business Valuation Review opinion is NOT a Conclusion of Value or a Calculated Value. The valuator is merely opining whether the report is credible. This opinion can be given in a written or an oral Review Report.
There are exceptions of course. The NACVA Review Standards do not apply when:
If you have specific questions regarding business valuations, please contact Powers Forensic Accounting, LLC at 614-745-5192.
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