Merging entities together is nothing new. Companies merge all of the time. Government offices even merge every so often, with local governments having been known to share services or annex one another. What about merging credentialed professionals into one? That’s a little more unusual.
It’s not very often that you see credentialing bodies consolidate or merge certifications, but this is just what the National Association of Certified Valuators and Analysts (“NACVA”) is doing with two of their credentials. Beginning April 1, 2013, Accredited Valuation Analysts (“AVA”) may adopt the Certified Valuation Analyst (“CVA”) credential. (Okay, I realize we’re not talking about merging orthopedic surgeons with certified financial planners, but merging the AVA into the CVA is still a merger of significance, at least for valuation and financial people). In many ways, it is a considered a merger for the sake of simplicity.
Based on the authoritative body, NACVA, there is no difference as to what AVAs and CVAs can or cannot do. They can both sign valuation reports, hold themselves out to the public as valuation experts and consult on the same types of valuation matters. Both credentials are even subject to the same examination process. You might be asking yourself, “Why were there even two credentials in the first place?” At the core of it, the difference has to do with whether a practitioner is or is not a Certified Public Accountant (“CPA”). An individual who is a CPA would be credentialed as a CVA, while someone who is not a CPA would be credentialed as an AVA.
After a detailed study and survey, NACVA determined that there are several reasons to merge the designations, with a common theme being the lack of differentiation between them. The NACVA committee members performing the study even admitted that there are not any good reasons for keeping the two designations separate. Therefore, after years of separation due to CPA-based influences, NACVA has agreed to “call a spade a spade” and merge AVAs into the CVAs.
All AVAs have through March 31, 2014 to adopt the CVA designation, at which point every NACVA credentialed valuation analyst will be a CVA. Whether you’re a CVA or AVA currently trying to explain the difference between the two, or you’re someone looking to hire a valuation expert and understand the difference, there is now a solution in place. Very soon from now, you won’t need to worry about any difference at all.
For more information on our business valuation services, contact Joe Yusz by leaving a message below or by calling 440-449-6800.