Certification in Distressed Business Valuation - CDBV

The Certification in Distressed Business Valuation (CDBV) is a unique certification program in valuation of distressed assets including distressed and/or bankrupt companies. In 2004, the Association of Insolvency and Restructuring Advisors launched the CDBV program to train and accredit professionals in this highly specialized area of business valuation. The intensive CDBV training program consists of a three-part course of study and uniform written examination.

OVERVIEW OF OBJECTIVES
The CDBV program’s course of study is comprehensive and advanced. Through successful completion of the three-part course of study and comprehensive examinations, candidates will have achieved and demonstrated proficiency necessary to:

COURSE OF STUDY AND EXAMINATION
The content of the CDBV course of study and examination is divided into three parts:
Part 1: Understanding the Bankruptcy Code and How It Impacts Valuation of Distressed Businesses
Part 2: Advanced Business Valuation
Part 3: Application of Business Valuation Concepts to Bankruptcy and Other Distressed Situations

PREREQUISITES FOR PROGRAM ENROLLMENT
To enter the program, candidates for the CDBV designation must:

  1. Be a Regular or Government/Academic Member of AIRA in good standing.
  2. Possess at least a bachelor's degree from an accredited college or university
  3. Submission of completed CDBV Program application.

Please refer to the information on each of the three course parts for specific course prerequisites.

REQUIREMENTS FOR CERTIFICATION

CPE CREDIT FOR CDBV COURSES
Twenty CPE credits are available for Part 1, and 28 CPE credits are available for each of the Part 2 and Part 3 courses.

RETAKING AN EXAMINATION
If an applicant fails to pass an examination, it may be retaken with another section of the course and examination for $200, or separately, without the course, for $75.

ADDITIONAL INFORMATION
For detailed standards and requirements for certification as determined by the Board of Directors, see AIRA Bylaws, Article VII

PROGRAM DIRECTOR
The Director of CIRA & CDBV Programs , Terry Jones, may be contacted at AIRA’s office or by email to tjones@aira.org


CDBV PART 1:
UNDERSTANDING THE BANKRUPTCY
CODE AND HOW IT IMPACTS VALUATION
OF DISTRESSED BUSINESSES
(Waived for CIRAs and CTPs)    

The overall objective of CDBV Part 1 is to provide a comprehensive understanding of the concepts in the Bankruptcy Code that are important in valuing distressed businesses including those in chapter 11. The course of study for CDBV Part 1 involves advance preparation consisting of reading assignments and answering of multiple choice questions based on the course material. Course materials are mailed four weeks prior to the start date of the course session. The two-and-a-half day session comprises two days of instruction and a three-hour exam on the third day.

Prerequisites for Taking CDBV Part 1

  1. Be a regular member of AIRA in good standing.
  2. Possess (at least) a bachelor's degree from an accredited college or university.
  3. Completion of five years of accounting or financial experience.

Relevant experience includes public accounting, crisis management, consulting, investment banking, credit management, loan workout or applicable government experience (e.g. financial analyst with the Office of U.S. Trustee; Pension Benefit Guarantee Corporation; FBI and SBA).

CDBV Part 1 Waiver
Part 1 of the CDBV program is waived for individuals that are either:

  1. A current CIRA certificate holder or candidates who have successfully completed all three parts of the CIRA examination provided the applicant meets the accounting or financial experience.
  2. A current CTP certificate holder.

CDBV Part 1 Course Content


CDBV PART 2:
ADVANCED BUSINESS VALUATION 
(Waived for ASA-Business Valuation;
CBA; CFA; CPA/ABV; CVA)

The overall objective of CDBV Part 2 is to provide a comprehensive understanding of the principles and concepts of business valuation. The course of study for CDBV Part 2 involves advance preparation consisting of reading assignments and answering of multiple choice questions based on the course material. Course materials are mailed four weeks prior to the start date of the course session. The three-and-a-half day session comprises three days of instruction and a four-hour exam on the fourth day.

Prerequisites for Taking CDBV Part 2

Successful completion of CDBV Part 1 or CTPs and those who have completed Part 2 of the CIRA program

CDBV Part 2 Waiver
Part 2 of the CDBV program is waived for individuals that hold the following certifications: ASA-Business Valuation, CBA, CFA, CPA/ABV, CVA.

CDBV Part 2 Course Content
Cost of Capital—Equity

Cost of Capital—Debt

Weighted Average Cost of Capital

Income Approach

Market Approach

Asset Approach

Other Valuation Topics


CDBV PART 3:                                                                                    
APPLICATION OF BUSINESS VALUATION
CONCEPTS TO BANKRUPTCY AND OTHER
 DISTRESSED SITUATIONS

The overall objective of CDBV Part 3 is to develop comprehensive understanding of how to apply principles and concepts of business valuation to bankruptcy and other distressed situations. The course of study for CDBV Part 3 involves advance preparation consisting of reading assignments and answering of multiple choice questions based on the course material. The course materials are mailed four weeks prior to the start date of the course session. The three-and-a-half-day session comprises three days of instruction and a four-hour exam on the fourth day.

Prerequisites for Taking CDBV Part 3

  1. Successfully complete Part 1 (or received an approved waiver).
  2. Successfully complete Part 2 (or received an approved waiver).
  3. Individuals who do not meet the requirements of both Part 1 and 2 may attend Part 3, but they are not eligible for certification.
  4. Part 2 will be waived for those applicants that have one of the following certifications: ASA-Business Valuation; CBA; CFA; CPA/ABV; CVA/AVA.

CDBV Part 3 Course Content
Standard of Value/Premise of Value

Cost of Capital – Equity

Cost of Capital – Debt

Weighted Average Cost of Capital

Income Approach

Market Approach

Asset Approach

Applications in Bankruptcy

CPE Credit for CDBV Courses

Twenty CPE credits are available for Part 1, and 28 CPE credits are available for each of the Part 2 and Part 3 courses.

Retaking an Examination

If an applicant fails to pass an examination, it may be retaken with another section of the course and examination for $200, or separately, without the course, for $75.

Refunds and Cancellation Policy

A full refund (if materials sent to you in advance of the course are returned) or full credit toward future enrollment will be allowed if notice of cancellation is received at least 10 business days before the start of the course. If notice of cancellation is received 3 to 9 business days in advance, credit toward a future course will be allowed minus a $75 service charge per part. Cancellations less than 3 business days in advance result in a service charge of $150 per part.

National Registry of CPE Sponsors

"Association of Insolvency and Restructuring Advisors" is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.

Questions and Complaints Resolution

For assistance or questions regarding refund, complaint and/or program cancellation policies, please contact our offices at 541.858.1665. For additional questions or for resolution of any complaint send email to Thomas Morrow, Executive Director, tmorrow@aira.org