By Joey N. Friedman, CPA, ABV, MAcc, MIB — President, Joey Friedman CPA PA. This article is published by Joey Friedman CPA PA, a Florida professional association. All forensic accounting, business valuation, expert witness, and litigation support services described herein are provided by Joey Friedman CPA PA. Mr. Friedman’s professional credentials and experience are exercised in his capacity as an officer, agent, and licensed CPA practicing under and on behalf of Joey Friedman CPA PA.
Quick Answer
Business valuation accountants with the ABV credential (Accredited in Business Valuation, issued by the AICPA) bring litigation-defensible methodology to disputes, divorce, shareholder buyouts, gift-and-estate tax, and M&A transactions. The ABV credential requires CPA licensure, valuation experience hours, a rigorous exam, and continuing education in BV-specific standards. ABV-credentialed CPAs follow the AICPA Statement on Standards for Valuation Services (SSVS No. 1) — the framework that opposing counsel will test on cross-examination.
Not every CPA can credibly value a business. The work requires specialized credentials, recent experience, and methodology training that the general CPA practice doesn’t develop. This article explains what makes a business valuation accountant a credible specialist — and what to look for when you’re choosing one.
The Business Valuation Accountant’s Specialty
Business valuation is a distinct specialty within the CPA profession. The skills required:
Income approach methodology. DCF (discounted cash flow) and capitalization of earnings methods, including discount rate determination, normalization adjustments, and reconciliation.
Market approach methodology. Comparable public companies, comparable transactions, multiple selection and adjustment.
Asset approach methodology. Net asset value, adjusted book value, liquidation value (where applicable).
Discount selection. Discount for lack of marketability (DLOM), discount for lack of control (DLOC), and other adjustments.
Standard of value selection. Fair market value vs. fair value vs. investment value vs. liquidation value.
Premise of value. Going concern vs. liquidation.
Documentation standards. AICPA Statement on Standards for Valuation Services (SSVS) and AICPA Statement on Standards for Forensic Services (SSCS) for litigation valuations.
A CPA who has done one valuation as part of a tax engagement doesn’t have these skills. A business valuation accountant has done dozens or hundreds.
The ABV Credential
The Accredited in Business Valuation (ABV) credential is the AICPA’s specialty credential for CPAs performing business valuation work. To earn ABV, a CPA must:
- Hold the CPA license (foundational)
- Complete substantial valuation education
- Pass the ABV examination
- Document 1,500 hours of valuation work experience over 5 years
- Demonstrate at least 6 distinct business valuation engagements
- Maintain continuing education (60 hours every 3 years)
The ABV credential signals that the CPA has invested significantly in the specialty AND maintains active practice. It’s the leading credential for CPA-performed valuation work.
Other Relevant Credentials
CVA (Certified Valuation Analyst). Issued by NACVA (National Association of Certified Valuators and Analysts). A respected alternative to ABV, also signaling specialty valuation expertise.
ASA (Accredited Senior Appraiser). Issued by the American Society of Appraisers. Strong credential, particularly for asset-heavy valuations.
CFA (Chartered Financial Analyst). More common for investment valuation contexts. Less common for closely-held business valuation.
For Florida divorce, shareholder oppression, and commercial litigation valuations, ABV or CVA are the most commonly accepted credentials.
When You Need a Business Valuation Accountant
You need a credentialed business valuation accountant when:
Divorce. A closely-held business interest is part of the marital estate.
Shareholder oppression / freeze-out. Minority shareholder buyout requires fair value determination.
Partnership dissolution. Partner interests need to be valued for buyout.
Estate or gift tax planning. Business interests transferred or held in estate need valuation for tax purposes.
Buy-sell agreement disputes. When parties disagree on the value under an existing buy-sell agreement.
Mergers and acquisitions. Particularly for closely-held targets where market data is limited.
Litigation damages. Where the value of a business is the disputed amount.
SBA loan applications. Some SBA programs require business valuation for loan eligibility.
Litigation involving business value (e.g., breach affecting business value).
When a Regular CPA Can’t Substitute
A regular CPA without ABV (or equivalent) credentials should NOT perform valuation work for matters where:
- The valuation will be used in litigation (deposition, trial)
- Tax authorities will scrutinize the valuation (IRS, state revenue)
- The valuation will be relied upon by sophisticated parties (lenders, buyers, courts)
- The valuation methodology will be subject to challenge
In these contexts, the lack of specialty credential is itself a basis for challenge.
For internal management purposes or rough planning, a regular CPA’s “ballpark estimate” can be useful — but it should be labeled clearly as such, not represented as a formal valuation.
What a Business Valuation Accountant Actually Does
The work product of a credentialed business valuation accountant:
Engagement letter specifying the standard of value, valuation date, scope, and deliverable.
Documentation analysis. Analyze financial statements, tax returns, contracts, customer/vendor data, industry benchmarks.
Industry and market analysis. Document industry conditions, market position, growth prospects, competitive landscape.
Normalization. Adjust reported earnings for owner compensation, personal expenses run through business, non-recurring items, etc.
Apply valuation approaches. Income, market, and/or asset approaches as appropriate.
Discount and premium analysis. Apply DLOM, DLOC, control premiums as appropriate.
Reconciliation. Weight the approaches and arrive at the conclusion of value.
Written report. Following AICPA SSVS standards (for non-litigation) or AICPA SSCS standards (for litigation), with appropriate methodology disclosure and documentation.
Testimony (in litigation). Deposition and trial testimony as required.
What to Look for When Hiring
When evaluating business valuation accountants, look for:
Credentials. ABV (preferred), CVA, ASA, or CFA. CPA license is foundational.
Recent experience. How many valuations in the last 12-24 months? In your industry? In your context (divorce vs. tax vs. transaction)?
Methodology discipline. Ask for a sample report (with client info redacted). Evaluate the methodology, documentation, and approach reconciliation.
Independence. No prior relationship with the parties that would compromise independence. No contingent fee arrangements.
Communication. Can the expert explain the valuation in plain language? Can they teach the methodology to the trier of fact?
Testimony experience. Has the expert testified before? Excluded? In what types of matters?
References. Other attorneys’ assessment of past work.
Joey Friedman’s Business Valuation Practice
For transparency: Joey N. Friedman, CPA, ABV, MAcc, MIB, in his capacity as President of Joey Friedman CPA PA, has been performing business valuations for Florida matters for many years. The firm’s valuation practice includes:
- Divorce valuations (closely-held businesses, professional practices, partnership interests)
- Shareholder oppression and freeze-out cases (fair value)
- Partnership dissolutions
- Estate and gift tax valuations
- Commercial litigation involving business value
- Buy-sell agreement disputes
The firm maintains the ABV credential and follows AICPA Statement on Standards for Valuation Services (SSVS) for all valuation work.
Frequently Asked Questions
What’s the difference between a valuation accountant and an appraiser?
In practice, the terms overlap. A “business valuation accountant” is typically a CPA with valuation specialty credentials. A “business appraiser” can be either a CPA or a non-CPA with appraisal credentials (ASA, CVA). The work product is similar; the underlying license differs.
Can a regular CPA value a business?
A regular CPA can prepare a basic estimate of value, but for any formal valuation purpose (litigation, tax filing, transaction), the appropriate specialty credential matters.
How much does a business valuation cost?
Florida divorce valuations: $15,000-$50,000. Commercial litigation valuations: $20,000-$75,000. Complex matters: $50,000-$200,000+. Costs depend on complexity, records availability, and required deliverable.
How long does a business valuation take?
4-8 weeks for focused engagements. 12-20 weeks for complex matters. Tax-driven valuations on tight deadlines can compress to 3-4 weeks with appropriate scope.
Does the valuation accountant testify in court?
Yes, when needed. The expert prepares a written report, gives deposition testimony, and may testify at trial.
Does Joey Friedman CPA PA provide business valuation services?
Yes. ABV-credentialed business valuation is one of the firm’s core service lines, particularly for Florida divorce, shareholder oppression, and commercial litigation matters.
What’s the difference between fair market value and fair value?
Fair market value is the price between a willing buyer and willing seller, typically with discounts for lack of marketability and lack of control (when applicable). Fair value is the proportional share of total enterprise value, typically WITHOUT marketability or control discounts. The standard depends on the context — Florida divorce uses fair market value; Florida shareholder oppression typically uses fair value.
Working with a Business Valuation Accountant
If you need a business valuation for any matter — Florida divorce, shareholder dispute, estate planning, transaction, or litigation — engaging a credentialed business valuation accountant early in the matter is essential. The methodology selection, records collection, and analytical depth all benefit from being planned at the start.
Joey Friedman CPA PA, through its President Joey N. Friedman, CPA, ABV, MAcc, MIB, provides business valuation services throughout Florida. Contact the firm to discuss your specific matter.
About Joey Friedman CPA PA
Joey Friedman CPA PA is a Florida professional association providing forensic accounting, business valuation, expert witness, and litigation support services. The firm is led by Joey N. Friedman, CPA, ABV, MAcc, MIB, who serves as the firm’s President.
All services described in this article are provided by Joey Friedman CPA PA. Engagement letters and professional services are issued by the firm. Joey N. Friedman signs in his capacity as the firm’s President — as an officer and agent acting on behalf of Joey Friedman CPA PA, not in any personal or individual capacity. Mr. Friedman’s professional credentials — including CPA license, ABV (Accredited in Business Valuation, AICPA), and ACFE membership — are exercised under the firm.
To engage Joey Friedman CPA PA, contact the firm:
- Phone: 954-282-9615
- Contact form: Contact the Firm
Disclaimer: This article is for informational purposes only and does not constitute legal, accounting, or tax advice. Engagement of Joey Friedman CPA PA is subject to a written engagement letter executed between Joey Friedman CPA PA and the engaging party. No attorney-client or accountant-client relationship is created by reading this article.
Related coverage from Joey Friedman CPA PA
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- Evaluating the Opposing Expert’s Business Valuation
- Forensic CPA vs Regular CPA: When You Need Each
- Income Normalization in Florida Divorce: Add-Backs, Owner Comp, and the EBITDA Bridge
About This Service
This article is part of Joey Friedman CPA PA’s broader practice in business valuation expert witness services. Visit the main service page for a complete overview of how we support attorneys, businesses, and individuals across Florida and nationally in financial disputes, litigation, and forensic engagements.
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