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CPA Business Valuation: Costs, Process, and When You Need One

Q: What's the cheapest credible business valuation?

For research: our free tool . For paid: calculation engagement from ABV-credentialed CPA, $2K-$4K for sub-$2M businesses. Calculation engagements are limited-scope but adequate for many internal planning purposes. Conclusion of value reports are more rigorous but cost 2-3x more.

Quick Answer

CPA business valuations are best for tax-related purposes (gift, estate, ESOP, charitable contributions) where IRS credibility is essential, typically costing $5,000 to $30,000 for businesses under $10 million and $30,000 to $75,000 or more for larger firms. Look for the ABV (Accredited in Business Valuation) credential from the AICPA. ABV holders are AICPA members, who follow the AICPA Statement on Standards for Valuation Services (SSVS, VS Section 100), not USPAP, and the credential allows integration with broader tax planning and filings. CPAs excel at tax-financial integration but may be less specialized than independent appraisers focused exclusively on valuation work.

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CPAs are often the right choice for business valuations because of the tax-and-financial integration they bring. Most ABV-credentialed CPAs (Accredited in Business Valuation, AICPA designation) work at CPA firms, can integrate the valuation with broader tax planning, and have credibility with the IRS for tax-related valuations. The trade-off: CPA-driven valuations are sometimes less specialized than valuations from independent appraisers focused exclusively on valuation work.

This guide covers when a CPA business valuation is the right choice, what credentials to look for (ABV vs. CVA vs. ASA), typical fees, and how CPA-driven valuations compare to alternatives. We’re CT Acquisitions, an M&A advisory firm working both sides of the table.

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What this guide covers

Best for: tax-related valuations (gift, estate, ESOP), where IRS credibility matters
Credential: ABV (Accredited in Business Valuation, AICPA) is the CPA-specific valuation credential
Typical fees: $5K-$30K for sub-$10M businesses, $30K-$75K+ for larger
Strength: integration with broader tax/financial planning
Limitation: sometimes less specialized than ASA-credentialed independent appraisers
Free alternative: our tool for non-tax/non-litigation purposes

When a CPA business valuation is the right choice

A CPA business valuation is a written estimate of what a company is worth, prepared by a CPA under the AICPA’s valuation standard, VS Section 100. It is the right choice for gift, estate, ESOP and charitable filings, where IRS credibility matters, and for partner or divorce disputes. For a sale, buyers price on market multiples instead.

Tax-related valuations

For gift tax, estate tax, charitable contribution, and ESOP valuations, CPAs are often the strongest choice because:

IRS credibility (CPAs are licensed by state boards of accountancy)
Tax integration (the same firm can handle the related tax filings)
Defensible methodology (ABV holders follow the AICPA Statement on Standards for Valuation Services, VS Section 100, not USPAP)

Litigation support

For partnership disputes, shareholder disputes, and divorce-related valuations, CPAs with litigation support experience often work alongside attorneys to provide both expert testimony and report preparation.

Pre-transaction planning

Sellers planning to sell within 1-3 years often hire CPAs for tax planning that includes valuation: structuring entities (S-corp vs. C-corp for QSBS), basis planning, gift / installment sale planning. The valuation is part of broader tax strategy.

Can a CPA do a business valuation?

Yes. Any licensed CPA can legally prepare a business valuation, but the license alone does not make the work defensible. Three things decide whether a CPA’s valuation holds up with the IRS, a court or a buyer: the professional standard the CPA follows, the tax rules for the specific filing, and the CPA’s valuation credential and experience.

The AICPA standard. AICPA members who estimate the value of a business follow the Statement on Standards for Valuation Services, codified as VS Section 100. It defines two engagement types. In a valuation engagement, the CPA chooses the approaches and reaches a conclusion of value. In a calculation engagement, the CPA and client agree in advance on limited procedures, and the result is a calculated value. A calculation costs less, but it is generally not what the IRS or a court expects to see.

The tax rules. For estate and gift tax, Revenue Ruling 59-60 sets the factors the IRS expects in any valuation of closely held stock. For donated property above the thresholds in IRC Section 170(f)(11), the IRS requires a qualified appraisal by a qualified appraiser, defined in Treas. Reg. 1.170A-17 as someone with a recognized appraisal designation or specific valuation education and experience. A CPA license by itself is not one of those qualifications. ESOP stock must be valued by an independent appraiser under IRC Section 401(a)(28)(C), so the company’s own CPA cannot sign it.

USPAP is a separate rulebook. AICPA members follow VS Section 100, not USPAP, when they value a business. The American Society of Appraisers requires its credentialed members to comply with USPAP, and some CPAs who also hold appraisal designations follow both. If a lender, court or engagement letter calls for USPAP, confirm it in writing before work starts.

What to ask your CPA. Which credential they hold (ABV, CVA or ASA), how many valuations they have signed in your industry and size band, whether the engagement is a conclusion or a calculation, and whether their reports have been through an IRS exam or a deposition.

CPA credentials for valuation

ABV (Accredited in Business Valuation)

AICPA’s designation for CPAs specializing in business valuation. Requires CPA license plus business valuation training, experience, and exam. Most ABVs work at CPA firms. Strongest credential for CPAs doing valuation work. On valuation specifically, our deeper look at Tax Structure Decision Tree for Sellers covers the methodology buyers actually use.

CVA / AVA (NACVA Credentials)

NACVA credentials available to CPAs and non-CPAs. Many CPAs hold both CPA and CVA. Less rigorous than ABV in some respects, but widely recognized.

Other credentials

Some CPAs offer valuation services without a specific valuation credential. Be cautious here, valuation is a specialty practice and CPAs without specific credentials may not produce defensible work.

Typical CPA valuation fees

Business Size	Calculation Engagement	Conclusion of Value
Sub-$2M	$2K-$4K	$5K-$10K
$2M-$10M	$5K-$15K	$15K-$30K
$10M-$50M	$15K-$30K	$30K-$75K
$50M+	$30K+	$75K+

How to choose between a CPA, an independent appraiser, or a free tool

Choose a CPA when

The valuation is for tax purposes (gift, estate, ESOP, charitable)
You want integration with broader tax/financial planning
Your existing CPA has ABV credential and relevant experience
Cost is a consideration (CPAs sometimes price below independent appraisers)

Choose an independent appraiser (ASA-credentialed) when

The valuation is for high-stakes litigation
The business is highly complex or has specialty industry issues
You need the most defensible report possible
Cost is less important than report rigor

Use the free tool when

You’re researching what your business might sell for
You’re preparing for broker conversations
You’re sanity-checking a quoted valuation
You don’t need a defensible third-party report

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Is a paid valuation worth it for your situation?

Get a sector-adjusted starting range first. If you’re researching what your business might sell for, this is often sufficient. If you have a specific tax or litigation purpose, you’ll know to upgrade to a paid valuation.

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What’s actually in a CPA business valuation report

An ABV-credentialed CPA’s valuation report follows AICPA SSVS (Statement on Standards for Valuation Services) standards. The structure isn’t arbitrary, it exists so the valuation holds up if challenged in litigation, IRS examination, or partnership dispute. The major sections:

Executive summary

2-4 pages summarizing the conclusion: business name, valuation date, scope of work, methodology, and the conclusion as a range or point estimate. A quality summary states what is being valued, as of what date, for what purpose, using what methodology.

Business description

4-8 pages describing the business: ownership history, services/products, customer base, employee count, geographic markets, competitive position, key risk factors. Specific customer concentration data and key-person dependency identification matter here.

Financial analysis

8-15 pages: 3-5 years of historical financials common-sized to revenue, with year-over-year trend analysis and comparison to industry benchmarks. Identifies the “run-rate” year used for valuation.

Normalized earnings (the most important section)

Where EBITDA add-backs and adjustments happen: owner’s above-market salary, personal expenses run through the business, one-time/non-recurring items, owner’s perks, depreciation methodology normalization. Every add-back should have a brief explanation and documentary support reference.

Valuation approaches

The CPA considers three approaches: income approach (DCF or capitalization of earnings), market approach (comparable transaction multiples and guideline public companies), and asset approach (sum of assets minus liabilities, rarely the primary method for operating businesses). The report reconciles these into a single conclusion.

Conclusion and appendices

The reconciled value (usually a range), the reconciliation rationale, detailed financial statements, normalization schedules, comparable transaction details, source citations, and the appraiser’s qualifications. The appendices are where audit defense lives.

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Section 1042 ESOP deferral explained (the big CPA-valuation use case)

One of the most powerful tax tools in business succession is the Section 1042 deferral, available when selling stock to an ESOP. Here’s how it works: if you sell C-corp stock to an ESOP that owns at least 30% of the company after the sale, you can defer capital gains tax indefinitely by reinvesting the proceeds in “qualified replacement property” (essentially U.S. publicly-traded stocks and bonds). The deferral lasts until you sell the replacement property; if you hold it until death, the basis steps up and the gain may never be taxed.

This is why ESOP transactions almost always require a CPA-driven valuation: the IRS scrutinizes ESOP valuations closely (the ESOP can’t pay more than fair market value), and an ABV-credentialed CPA’s report under the AICPA Statement on Standards for Valuation Services (VS Section 100) is the standard. The combination of Section 1042 deferral plus the S-corp ESOP tax exemption (if the company elects S-corp status owned by the ESOP, the company pays no federal income tax) makes ESOPs one of the most tax-advantaged exit structures, though the setup cost ($100K-$500K) and ongoing fees ($25K-$75K/year) mean ESOPs make sense mainly for businesses with $5M+ EBITDA and 30+ employees.

For the broader landscape of valuation options and when to upgrade from a free estimate to a paid valuation, see our valuation resources hub and how to find a valuation firm.

About the Author

Christoph Totter is the founder of CT Acquisitions, an M&A advisory firm working both sides of the table, headquartered in Sheridan, Wyoming. We work directly with 500+ buyers, search funders, family offices, lower middle-market PE, and strategic consolidators, including direct mandates with the largest consolidators that other intermediaries cannot access. No fee to you on buy-side introductions; sell-side mandates are paid on success at closing. Connect on LinkedIn · Get in touch

Cpa Business Valuation: Frequently Asked Questions

What does a certified business valuation professional do?

A certified business valuation professional (holding a business valuation certification such as the AICPA’s ABV, the NACVA’s CVA, or the ASA designation) prepares a defensible written opinion of value for tax filings, estate and gift planning, ESOPs, litigation, and SBA loans. They apply income, market, and asset approaches, document assumptions, and sign the report. That is different from a broker opinion of value or a buyer-side market read, which estimate what a buyer would actually pay today.

How do you choose a business valuator?

Choose a business valuator by matching credential and purpose. For IRS-facing work (gift, estate, charitable contribution), use a credentialed appraiser experienced with tax court scrutiny. For a sale, a market-based read from an advisor who talks to active buyers will land closer to your real closing price. Ask any valuator how many engagements they have done in your industry and revenue band, and whether their reports have survived IRS or court review.

Should I hire a CPA for my business valuation?

For tax-related valuations (gift, estate, ESOP), yes, CPAs with ABV credential and tax integration are often the strongest choice. For litigation or complex business valuations, ASA-credentialed independent appraisers may be better. For research purposes, our free tool is sufficient.

What does an ABV-credentialed CPA cost?

$5K-$10K for sub-$2M businesses (conclusion of value). $15K-$30K for $2M-$10M businesses (full conclusion of value). $30K-$75K for $10M-$50M. Litigation valuations cost more (1.5-2x standard) due to defensibility requirements.

What’s the difference between an ABV CPA and an independent appraiser?

ABV CPAs are CPAs first, valuators second, often with broader tax/financial integration. Independent appraisers (often ASA-credentialed) are specialists who do nothing but valuation work. ABVs are typically the right choice for tax purposes; ASAs for high-stakes litigation.

Can my regular CPA do my business valuation?

Only if they have specific valuation credential (ABV, CVA, or AVA) and experience. Generalist CPAs without valuation credential may not produce defensible work. Ask about credential and recent valuations done in your sector and size range.

How long does a CPA valuation take?

Calculation engagements: 2-4 weeks. Full conclusion of value: 4-8 weeks. Litigation valuations: 6-12 weeks.

Will the IRS accept a CPA valuation?

ABV-credentialed CPAs produce IRS-acceptable work for gift, estate, and other tax-related valuations. CPAs without specific valuation credentials may not. The credential and the methodology compliance (SSVS, VS Section 100, for AICPA members) matter more than the firm name.

Should I get a valuation from my own CPA or an independent one?

For most tax purposes, your own CPA (if ABV-credentialed) is fine and often more efficient. For litigation or contested matters, independent valuator is often better because it removes any appearance of bias. For ESOP valuations, regulations require independent valuator; your firm’s CPA can’t do it.

What’s the cheapest credible business valuation?

For research: our free tool. For paid: calculation engagement from ABV-credentialed CPA, $2K-$4K for sub-$2M businesses. Calculation engagements are limited-scope but adequate for many internal planning purposes. Conclusion of value reports are more rigorous but cost 2-3x more.

What is the AICPA business valuation standard?

It is the Statement on Standards for Valuation Services, codified as VS Section 100. It applies to AICPA members who estimate the value of a business, business interest or intangible asset. It sets the two engagement types, valuation and calculation, and the content required in each report. The ABV credential is the AICPA’s separate designation for CPAs who specialize in this work.

What is the difference between a calculation engagement and a conclusion of value?

In a conclusion of value, the valuation analyst picks the approaches, tests the data and signs an opinion of value. In a calculation engagement, the client and analyst agree on limited procedures in advance and the result is a calculated value. A calculation is cheaper and fine for internal planning, but tax filings, ESOPs and litigation usually call for a full conclusion of value.

Who can perform a business valuation?

Anyone can estimate value, but defensible valuations come from credentialed analysts: CPAs with the AICPA’s ABV, NACVA’s CVA holders, and ASA-credentialed appraisers. For IRS filings, the appraiser must meet the qualified appraiser rules. Business brokers and M&A advisors give a market read of what buyers will pay, which is useful for a sale but not a substitute for a formal report.