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Industry Landscape
The business valuation FinTech industry is currently experiencing growth, driven by increasing demand for accurate and accessible valuation services. Technological advancements are enabling real-time valuations and competitive insights, attracting both financial professionals and business owners. Key players are focusing on expanding their product offerings and entering new markets. Competition is intensifying, with companies differentiating themselves through proprietary algorithms, comprehensive reports, and user-friendly platforms. Regulatory changes and economic conditions continue to influence valuation methods and market dynamics.
Total Assets Under Management (AUM)
Market Size in United States
~$2 Billion
(5.1% CAGR)
According to IbisWorld, the market size of the Valuation Services industry in the US has grown at 5.1% per year on average between 2019 and 2024.
Total Addressable Market
2 Billion USD,
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Artificial Intelligence (AI)
AI and machine learning are enabling more accurate and automated business valuations by analyzing vast datasets and identifying patterns that humans might miss.
Blockchain
Blockchain technology can provide secure and transparent data management for business valuations, ensuring the integrity and reliability of valuation data.
Cloud Computing
Cloud computing provides scalable and accessible infrastructure for valuation platforms, enabling real-time data processing and collaboration among stakeholders.
Impactful Policy Frameworks
AICPA Statement on Standards for Valuation Services (SSVS)
The AICPA's SSVS provides guidelines for performing valuation services, covering areas such as due diligence, documentation, and reporting to maintain quality and consistency in valuation practices. The standards are periodically updated to reflect changes in the business environment and regulatory landscape (latest update in 2023). SSVS is a widely accepted framework in the US, though not legally mandated it is a must follow in the US valuation industry to maintain professional credibility and ethics and ensure best practices in valuations are maintained, and followed, and audited. The onus is on the company to implement these standards and ensure compliance at all times, in order to be a leading service provider in the valuation space in the US market for credible valuations under industry best practices. In addition, a thorough compliance review and audit must be in place, at all times, to maintain the highest levels of professional compliance and business integrity in the US market.
Compliance with these standards ensures that BizEquity's valuation reports are recognized and accepted by regulatory bodies, enhancing credibility and trust.
IRS Revenue Ruling 59-60
IRS Revenue Ruling 59-60 outlines the factors to consider when valuing closely held corporations for estate and gift tax purposes, providing a framework for determining fair market value. This ruling is frequently referenced in valuation reports and court cases involving business valuations in the US. Revenue Ruling 59-60 requires a company that delivers valuation services to show they have adopted and enforced these guidelines as part of their processes in the US market, and in order to be credible in their offering, ensure best practices and methodologies, are followed and implemented at all times in their processes. Failure to do so would indicate the service is either substandard or illegal in the US market.
Understanding and incorporating these tax regulations into valuation models ensures accurate valuation results and compliance with IRS requirements.
Dodd-Frank Wall Street Reform and Consumer Protection Act (2010)
The Dodd-Frank Act introduced stricter regulations for financial institutions and increased oversight of valuation services, emphasizing the need for independent and objective valuations. While not directly focused on small business valuation, its broader implications affect standards and practices in the financial industry, including valuation-related services in the US market and impacts disclosure rules in various circumstances, that could impact valuations directly or indirectly. It also ensures transparency of operations, proper KYC and AML compliance, and ensuring the best ethical and professional behaviour at all times.
Complying with Dodd-Frank regulations ensures transparency and accountability in financial reporting, promoting trust in business valuations.
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