Can a CPA Do a Business Valuation?

Business owners often rely on their CPA as their most trusted financial advisor. CPAs prepare tax returns, review financial statements, and provide guidance on planning decisions that affect cash flowand long-term outcomes. As a result, it is common for owners to ask a straightforward question: can a CPA do a business valuation?

The answer depends on the purpose of the valuation, the level of reliance required, and the professional standards governing the engagement. In some situations, a CPA may provide valuation-related assistance. In others, a valuation must be performed by a certified appraiser to meet lender, legal, or regulatory requirements.

This article explains can a CPA do a business valuation, how a CPA business valuation differs from a certified valuation, and when engaging a qualified business valuation professional with proper credentials is required.

Understand What a Business Valuation Represents

Before addressing whether a CPA can perform a business valuation, it is important to understand what a professional valuation represents.

A business valuation determines fair market value, which is defined as the price at which a business would change hands between a willing buyer and a willing seller, when neither party is under compulsion and both have reasonable knowledge of the relevant facts.

Fair market value is the standard relied upon for:

• Business sales and acquisitions
• SBA-financed transactions
• Partner buyouts and ownership transitions
• Estate and gift tax planning
• Divorce and shareholder disputes
• Litigation and expert testimony

A professional valuation relies on financial interpretation using recognized valuation methodologies. It does not evaluate operations, management quality, or business strategy directly. Those factors influence value only as they appear in revenue, margins, cash flow, and risk.

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The Short Answer

So, can a CPA do a business valuation?

The short answer is sometimes, but with important limitations.

Many CPAs possess strong financial analysis skills and maybe qualified to perform valuation work if they also hold appropriate valuation credentials and follow recognized valuation standards. However, not all CPAs are valuation professionals, and not all valuation assignments are appropriate for a CPA without specialized certification.

The key distinction is not whether someone is a CPA. The distinction is whether the engagement requires a certified valuation prepared under professional valuation standards.

The Difference Between a CPA Business Valuation and a Certified Valuation

A CPA business valuation can take different forms depending on scope, purpose, and intended reliance.

Limited or Internal Valuation Analysis

In some situations, a CPA may assist with valuation-related analysis for internal or planning purposes, such as:

• Preliminiary value discussions
• Financial modeling or scenario analysis
• Informal estimates for internal decision-making

These analyses can be helpful for planning, but they are not designed to be relied upon by third parties. They typically do not meet the standards required by lenders, courts, or taxing authorities and should not be treated as formal opinions of fair market value.

Certified Business Valuation

A certified valuation is performed by a credentialed business valuation professional who follows established valuation standards, such as those issued by professional valuation organizations and appraisal frameworks.

Certified valuations are required when conclusions must be defensible, independent, and suitable for third-party reliance. This distinction is critical when evaluating whether a CPA can perform a business valuation for high-stakes purposes.

When a Certified Appraiser Is Required

There are specific situations where a certified appraiser is required, regardless of a CPA’s general financial expertise.

SBA-Financed Transactions

SBA lenders typically require a valuation prepared by a qualified, independent valuation professional for transactions involving ownership changes. Informal estimates or internally prepared analyses are generally not sufficient.

Estate and Gift Tax Matters

Valuations used for estate and gift tax filings must meet IRS standards and be defensible under audit. A certified valuation prepared by a credentialed business valuation professional is typically required.

Divorce, Shareholder Disputes, and Litigation

In divorce proceedings, shareholder disputes, andl itigation, valuation conclusions are subject to scrutiny. Courts rely on certified valuations supported by recognized methodologies and thorough documentation.

Partner Buyouts and Ownership Transitions

When partners disagree on value, a certified valuation provides an objective basis for negotiation and dispute resolution.

In each of these cases, the question is less about can a CPA do a business valuation and more about whether the valuation meets applicable professional and regulatory standards.

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Credentials Matter More Than Job Title

CPA licensure alone does not automatically qualify someone to perform certified valuations. Valuation credentials require additional training, testing, and adherence to valuation-specific standards.

Common valuation credentials include:

• Certified Valuation Analyst (CVA)
• Accredited in Business Valuation (ABV)
• Accredited Senior Appraiser (ASA)

A CPA who also holds one of these credentials and performs valuation work under recognized valuation standards may be fully qualified to perform a certified valuation.

In contrast, a CPA without valuation credentials is typically limited to advisory or internal valuation-related analysis.

What Certified Appraisers Actually Do

Certified appraisers focus on financial interpretation, not operational assessment. This distinction applies regardless of whether the professional is a CPA or another type of business valuation accountant.

Certified appraisers:

• Analyze historical financial statements
• Normalize earnings toreflect true economic performance
• Apply income, market, and asset-based valuation approaches
• Assess risk through revenue volatility, margin stability, and cash flow
• Reconcile valuation approaches to reach fair market value

They do not evaluate employee performance, customer satisfaction, operational efficiency, or management style directly.

Why Buyers and Lenders Care About Certification

Buyers and lenders rely on certified valuations because they provide:

• Objective, independent conclusions
• Consistency with recognized valuation standards
• Defensible documentation
• Reduced risk during due diligence
• Confidence in pricing and financing decisions

When owners ask can a CPA do a business valuation, buyers and lenders are often asking a different question:

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Can this valuation be relied upon?

Certification answers that question.

The Role of CPAs in the Valuation Process

CPAs play an important role in valuation engagements even when they are not the valuation provider. Their involvement often includes:

• Preparing or reviewing financial statements
• Explaining accounting policies and adjustments
• Supporting normalization adjustments
• Advising clients on tax implications

In many cases, CPAs work alongside certified appraisers to ensure valuation conclusions are accurate, well-supported, and properly contextualized.

This collaborative model allows owners to benefit from both accounting expertise and valuation specialization.

Choosing the Right Valuation Approach

When evaluating whether a CPA can perform a business valuation, owners should focus on the purpose of the valuation, not convenience.

Key questions to consider include:

• Will buyers, lenders, or courts rely on this valuation?
• Is certification required by regulation or lender policy?
• Does the valuation need to withstand scrutiny?
• Is fair market value required?

If the answer to any of these questions is yes, a certified valuation is typically required.

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Why Professional Valuation Matters

Business valuation is not simply a financial exercise. It isa professional opinion supported by documented analysis and recognized standards. Relying on an informal or improperly scoped valuation can lead to:

• Pricing disputes
• Financing delays
• IRS challenges
• Litigation exposure
• Failed transactions

A certified valuation provides clarity, credibility, and confidence when it matters most.

Understanding the Right Tool for the Right Purpose

So, can a CPA do a business valuation? In limited contexts, a CPA may provide valuation-related insight. However, when fair market value must be established for buyers, lenders, courts, or taxing authorities, acertified appraiser is required.

Understanding the difference between a CPA business valuation and a certified valuation helps owners choose the right approach for their situation. When the stakes are high, certification, standards, anddefensibility matter more than job title.

Knowing when to engage a qualified business valuation accountant ensures decisions are grounded in financial reality and supported by professional standards.