Chartered Business Valuator
For all you Canadians and Americans in the know.
What are you thoughts on the Chartered Business Valuators designation (CBV)? How inferior are they to CFAs or superior to Chartered Accountants in terms of finance related work?
Would people just take the CBV because they believe it to be an easier route than the CFA?
It be great to hear your thoughts and comments! Enjoy your night!
Comparing apples to oranges, really.
First of all, the CBV is only recognized in Canada, whereas the CFA is a globally recognized designation.
Second, the CBV focuses on valuation to the exclusion of everything else. It assumes you have a base knowledge of accounting and finance, and focuses on valuation theory more than practice. It's mildly useful for something like PE or IBD, but more so for litigation support, valuations, etc. It's a pretty "niche" designation that shows you are able to model.
The CFA is the "gold standard" in the asset management industry. I'd say "finance", but that's not entirely true. In the realm of asset management (including equity research, mutual and hedge funds), the CFA is basically a prerequisite. Even those with MBAs are strongly encouraged to pursue the designation. Outside of asset management, such as IBD or PE, it's only mildly, if at all useful. In those industries, the MBA reigns supreme.
Finally, the CA is obviously mandatory for audit, but is a fairly generalist designation due to the heavy focus on accounting - essentially the building blocks with which finance is built. If you ask any IBDer what they wish they'd known more of before they started as an analyst - it's usually accounting. You'd get a similar response in ER, and asset management - but to a lesser degree.
Ultimately, I'd probably rate it CFA > CBV > CA, but having more than one is certainly helpful. Keep in mind, for each of those, work experience is a major component. For example, the CA requires 3 years in a CATO (CA Training Office) as well as specific undergrad courses towards the 51-credit requirement, the CFA requires 4 years of investment-related experience (where at least 50% of the time is spent in the investment decision making process) and the CBV requires 1,600 valuation hours attested by a practising charterholder. Until very recently, the CA could not even be pursued without a full-time offer.
None of these designations will allow you to "break in" on their own - but they're a good start to any career, particularly the CFA. It's very helpful to have level I or II written when applying for asset management, as it shows a definite interest and understanding of the business and its requirements.
Hope that helps!
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