Asset Valuation as a Full Time Career Opportunity

Introduction  to Valuation

Valuation is the process of determining the present value (PV) of an asset. Valuations can be done on assets (for example, investments in marketable securities such as stocks, options, business enterprises, fixed assets  or intangible assets such as patents and trademarks) or on liabilities (e.g., bonds issued by a company). Valuations are needed for many reasons such as investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, secured lending, collateral security, taxable events to determine the proper tax liability, and in litigation etc.

Valuation as a Standalone Profession

Valuation of any Asset or Business Enterprise or Shares has been in existence for long and they have been primarily used in the scenarios as listed below.

Valuation for Banks & Financial Institutions	Valuation for Impairment of Assets	Valuation for Insurance Purposes
Internal Audit Valuation	Valuation for Visa	Self-Assessment Valuation
Customs Pre-Shipment Inspection & Estimation of Value	Valuation for Asset Reconstruction Companies	Valuation for Duty Payback
Valuation for Mergers, Acquisitions, Demergers	Valuation for Liquidation or Auctions	Valuation for updating Book Records

Asset Classes in Valuation

1. Land & Building
2. Plant & Machinery
3. Financial Assets
4. Overall Business Valuation ( combination of all three Valuer)

Background

Valuation  of Assets are mostly done by Domain specific Valuers who were experienced with respect the type of asset being valued like for ex. Civil Engineer values Land & Building Assets, Chartered  Account values Financial Assets , Mechanical Engineer values Machinery etc. And in most cases Valuation is a part time profession where the Valuer has other business interests in his domain of expertise  - like for ex. Construction Company or Structural Consultant + Land & Building Valuer / Auditor + Financial Asset Valuer & Mechanical Engg Consulting + Machinery Valuer.

Only recently we have seen the emergence of many Valuers who are pursuing Valuation as a full time scope  of Work. As the economy grows the requirement of Valuers & Valuation has increased multifold and has given way for the possibility of a Full Time Valuation Profession or Career with good remuneration over a period of time and Valuation has become a significant professional Service just like Chartered Accounts or other Professional  Services which are recognized by the government of India .

Opportunities in a Full Time Valuation  Profession

As the need for Valuation for various needs increases so the demand  for Valuers have increased exponentially. Many new entrants are joining the Valuation Profession and many people leave their current full time careers to explore opportunities as a Full  Time Valuer.

Just like any other Professional Service, Valuation is also a field where one  needs considerable experience as a Valuer to know the nitty gritties and various aspects of Valuation and as one gains experience then it is easier to standout amidst the competition. For people who join as Associate or Junior Valuers with practising values find it easy to wade through the field and eventually establish themselves as an Independent Valuer over a period of Time People who directly venture into the field without completely understanding the various challenges, aspects of Valuation find it little difficult as to where to start  from, how to go  about and  how to sustain the initial years as they establish themselves as a credible valuer and  experienced valuation  professional and get recurring customers/clients.

Registrations Needed for Valuation ProfessionRegistration with Income Tax Department under Section34AB of Wealth Tax Act 1957
Registration with IBBI- Insolvency & Bankruptcy Board of India Section 247 under Companies Act 2013

Eligilibility for Registration as a Valuer

An individual shall have the following qualifications and experiences to be eligible for registration:

Asset Class	Eligiblity/Qualifications	Experience in Discipline
Plant and Machinery	(i) Graduate in Mechanical, Electrical, Electronic and Communication, Electronic and Instrumentation, Production, Chemical, Textiles, Leather, Metallurgy, or Aeronautical Engineering, or Graduate in Valuation of Plant and Machinery or equivalent; (ii) Post Graduate on above courses.	Five Years   Three Years
Land and Building	(i) Graduate in Civil Engineering, Architecture, or Town Planning or equivalent; (ii) Post Graduate on above courses and also in valuation of land and building or Real Estate Valuation (a two-year full time post-graduation course)	Five years Three years.
Securities or Financial Assets	(i) Member of Institute of Chartered Accountants of India, Member of Institute of Company Secretaries of India, Member of the Institute of Cost Accountants of India, Master of Business Administration or Post Graduate Diploma in Business Management (specialisation in  finance).   (ii) Post Graduate in Finance	Three years

You can get more links in various websites when  you search for Valuatoin.

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