The total business valuation revenues earned by firms participating in this year’s 2011 BV Firm Economics & Best Practices Guide was $685 million.  The editors project, based on participation rates, growth rates, and market demographics, that the business valuation profession earned the distinction of becoming a $1 billion annual business sometime in 2007, and, despite the downturn, has grown to nearly $1.6 billion now. 

Total business valuation revenues generated by the respondent’s firms appear in the table below–and it points out the fact that the business valuation profession is comprised of widely divergent practices.

A clear migration to larger practice units. Just over 30% of the firms brought in less than $100,000 in BV revenues two years ago; only a quarter did in 2010.  These small practices are often associated with CPA firms, where one BV partner does valuations “part-time,” sometimes at fees below market. 

Largest firms. At the other end of the spectrum, seven responding firms who reported usable data now claim over $10 million in BV revenues.  In this “biggest BV firm” group were two of the Big 4, two non-Big 4 national CPA firms, two international valuation firms, and one “other prime business” firm.

The Guide will be available next month.