Finance career path

Valuation

Discover what valuation is, which methods specialists use to determine what a company or asset is worth, what the work involves and how students can prepare for internships and analyst roles.

What is valuation?

Valuation specialists determine what a company, business unit, asset or financial instrument is worth. That question comes up in many situations: an M&A transaction, financial reporting such as a purchase price allocation or an impairment test, tax planning, a dispute between shareholders, or a partner buyout. Valuation is a specialist advisory discipline, typically found within the deal advisory or financial advisory practice of Big Four and mid-tier accountancy firms, and sometimes as an in-house function at banks or large corporates.

What makes valuation a distinct discipline rather than a byproduct of M&A or audit work is that the purpose of the valuation changes what is being measured. A valuation for a transaction generally reflects the price two willing parties would agree, which can include synergies or a control premium that only matters to that specific buyer. A valuation for financial reporting under IFRS or Dutch GAAP instead has to follow a defined standard of value, often fair value as a market participant would see it, without reference to a particular buyer's strategic reasons. A tax valuation has to satisfy the standards a tax authority applies, and a valuation prepared for a dispute has to withstand cross-examination by an opposing expert. The same company can therefore have a different defensible value depending on why the question is being asked, and part of the specialist's job is making that distinction explicit at the start of an engagement.

What it isDetermining the value of a company, business unit, asset or financial instrument, using recognised valuation methods and defensible assumptions.
Where valuation sitsUsually within the deal advisory or financial advisory practice of an accountancy or advisory firm, closely linked to M&A, transaction services and audit.
Why it mattersA valuation conclusion is often relied on by clients, auditors, tax authorities or courts, so the methodology and assumptions have to be defensible.
Why students find it interestingIt combines rigorous financial modelling with real business judgement, and offers exposure to a wide variety of sectors, deals and reporting situations.

What valuation specialists do

Building valuation models Using multiple methods, such as discounted cash flow, comparable company multiples and precedent transactions.
Researching comparables Finding comparable listed companies and comparable transactions to benchmark a valuation against the market.
Analysing financial statements Understanding historical performance, normalising results and building forward projections.
Writing valuation reports Documenting the methodology, assumptions and conclusion in a report that clients, auditors or courts can rely on.
Defending the conclusion Explaining and defending the methodology and assumptions to clients, auditors or opposing experts in a dispute.
Purchase price allocations Allocating the price paid in an acquisition across the acquired assets and liabilities for financial reporting purposes.
Impairment testing Checking whether the carrying value of goodwill or other assets is still supported under accounting standards.
Supporting client discussions Preparing analysis that partners and directors use in negotiations, board meetings and disputes.

How the valuation process works

1 Understand why the valuation is neededA deal, financial reporting or a dispute all call for a different focus and a different applicable standard.
2 Gather financial and market dataHistorical financial statements, forecasts, market data and information on comparable companies and transactions.
3 Build the valuation modelApply the appropriate methods, such as discounted cash flow, comparable multiples or precedent transactions.
4 Cross-check the resultsCompare outcomes across methods and challenge assumptions that produce very different results.
5 Produce and defend the reportDocument and defend the conclusion for the client, auditor or, in a dispute, an opposing expert.

From analysis to reporting

At its core, a valuation engagement moves through three broad phases. The team first analyses the business and the data available, then applies the appropriate valuation methods to reach a conclusion, and finally produces a report that documents and defends that conclusion.

The three core methods are not interchangeable and each depends on different inputs and different judgement calls. A discounted cash flow analysis projects the company's future free cash flows and discounts them back to a present value using a discount rate that reflects the risk of those cash flows, usually a weighted average cost of capital, and it also requires an assumption about the terminal value beyond the explicit forecast period, which often makes up a large share of the total outcome. Comparable company multiples instead look at how the market prices listed companies with similar characteristics, expressed as a ratio such as enterprise value to EBITDA, and apply that ratio to the subject company's own financials, which depends heavily on selecting a genuinely comparable peer set and adjusting for differences in growth, margin and risk. Precedent transactions take multiples paid in actual historical acquisitions of similar companies, which usually embed a control premium since a buyer typically pays more to acquire full control than the market price of a minority stake. Because each method rests on different assumptions, they rarely produce identical outcomes, and reconciling the differences and explaining why one method is weighted more heavily than another is often the most judgement-heavy part of the work.

Analyse Value Report
The core of every engagement: analyse the business and its data, value it using recognised methods, then report and defend the conclusion.

Types of valuation work

Transaction valuationSupporting an M&A deal by determining a fair price for the target, often for a buyer or a seller. This can range from an informal indicative view early in a process to a formal fairness opinion that a board relies on before approving a deal.
Financial reporting valuationPurchase price allocations and goodwill impairment testing that support a company's financial statements under accounting standards. This work also covers valuing intangible assets, such as customer relationships or brand names, that only surface on the balance sheet after an acquisition.
Tax valuationValuations that support tax planning, restructurings, transfer pricing positions or the granting of employee share and option schemes, where a defensible value is needed for the tax return.
Dispute and litigation valuationExpert witness work in shareholder disputes, arbitration, divorce proceedings involving a family business or partner buyouts, where the valuation itself, not just its outcome, is likely to be scrutinised and challenged by an opposing expert.

Roles in valuation

Intern

A student who supports the team with research, data gathering and formatting.

Key tasks
Gathering comparable data, formatting reports, supporting model updates.
Core skills
Excel, basic accounting knowledge, precision.
Typical level
Student, usually in a later year of study.

Valuation Analyst

A starter who does much of the modelling and comparable research on an engagement.

Key tasks
Building valuation models, comparable company and transaction research, drafting parts of reports.
Core skills
Financial modelling, valuation theory, attention to detail.
Typical level
Starter, usually straight from university.

Senior Analyst / Consultant

Runs larger parts of an engagement and starts to have direct client contact.

Key tasks
Leading model construction, reviewing junior work, drafting full sections of reports.
Core skills
Stronger valuation judgement, client communication, review skills.
Typical level
A few years of experience.

Manager

Manages engagements day to day and coordinates directly with clients.

Key tasks
Engagement planning, quality review, client relationship management.
Core skills
Project management, technical review, communication.
Typical level
Mid-level.

Senior Manager

Oversees multiple engagements and helps develop the team.

Key tasks
Overseeing engagement teams, business development, complex technical review.
Core skills
Deep technical expertise, client development, leadership.
Typical level
Senior.

Director

Carries responsibility for the practice's largest and most complex engagements.

Key tasks
Client relationships, final sign-off on conclusions, practice strategy.
Core skills
Track record, judgement, relationship building.
Typical level
Most senior.

How long each step tends to take

Valuation does not have one fixed ladder, and timing depends on the firm and how you enter. As a rough guide, the path from junior analyst to director looks roughly like this, though many people move at a different pace or switch to a related practice along the way.

LevelTypical time in role
Valuation Analystaround 2 years
Senior Analyst / Consultant2 to 3 years
Manager2 to 3 years
Senior Manager3 to 4 years
Directorsenior level, several years to reach

How valuation fits the business model

Valuation is typically a fee-based advisory service. A firm bills clients for a valuation engagement, whether that is a one-off report for a transaction or a recurring assignment such as an annual impairment test. Fees generally reflect the scope and complexity of the engagement rather than a fixed rate.

Within an accountancy or advisory firm, valuation usually sits inside the broader deal advisory or financial advisory practice, alongside M&A advisory and transaction services. This proximity matters: valuation teams are often brought onto a deal by colleagues in M&A or transaction services, and valuation work for financial reporting purposes connects closely to the audit practice, since auditors rely on valuation conclusions when they sign off on financial statements.

That closeness to audit also brings a constraint that shapes how the work is staffed: independence rules restrict what non-audit services a firm can provide to its own audit clients, including certain valuation work. In practice this means a valuation team sometimes cannot take on an engagement for a company that the same firm audits, and larger firms structure their advisory and audit practices to manage this. It is a good example of how valuation, although commercially driven like any advisory service, still operates inside a regulatory framework built around trust in financial statements.

Compensation in valuation

Compensation in valuation is broadly structured in the same way as other deal advisory roles at Big Four and mid-tier accountancy firms: a base salary plus a bonus that is tied to firm and individual performance. As you move up, the bonus component tends to become a larger part of total pay.

Exact figures vary by firm, level and year, and we do not publish specific numbers here since they change over time and differ between employers. What matters most for a student is that the structure is comparable across the Big Four and other advisory networks, and that performance, both individual and firm-wide, is the main driver of the bonus.

Rekenmachine en financiële documenten op een bureau tijdens waarderingswerk
Valuation work is detail-oriented and model-heavy, built on financial statements, market data and careful documentation.

What interns and analysts do

Junior team members build the building blocks that senior staff rely on to reach a conclusion.

  • Building parts of valuation models
  • Gathering comparable company data
  • Gathering comparable transaction data
  • Formatting and proofreading reports
  • Supporting senior team members on engagements
  • Checking calculations and cross-referencing sources

Skills you need

Financial modelling Accounting knowledge Valuation theory Cost of capital Excel Attention to detail Clear written communication Market research Commercial judgement

Best routes into valuation

Internship at a Big Four or mid-tier firmThe most direct route, often into a valuation team as part of a deal advisory internship.
Graduate programmeStructured entry programmes at Big Four firms often hire directly into valuation teams.
Move from auditSome analysts move internally from audit into valuation once they understand the firm and the accounting basics.
Move from transaction servicesFinancial due diligence experience translates well into valuation work on the same deals.
Finance or economics degreeA relevant academic background helps with the accounting and valuation theory the work relies on.
Student investment fund or finance societyPractical modelling experience and a network before graduation.

Compared to investment banking or private equity recruiting, valuation hiring at Big Four and mid-tier firms tends to place less weight on prior deal experience and more on demonstrable analytical rigour and accounting fundamentals, which is part of why it is a realistic entry point for students without an existing finance internship on their CV. That said, competition for spots at the larger firms is real, and a clear, specific interest in valuation, rather than a generic interest in finance, tends to stand out in interviews.

Valuation versus other finance paths

Valuation vs transaction services

Valuation determines what a company or asset is worth. Transaction services checks the financial and operational facts underlying a deal, known as financial due diligence, for example by normalising EBITDA, checking working capital and testing the quality of earnings. The two often work on the same deal from different angles and their outputs feed into each other: the value a valuation team calculates is only as reliable as the normalised earnings and net debt figures that a due diligence team has confirmed. Analysts sometimes describe the difference as diligence answering whether the numbers behind the business can be trusted, and valuation answering what those numbers are worth.

Valuation vs corporate finance / M&A advisory

Valuation is a specialist input into a broader M&A process. Corporate finance and M&A advisory teams run the overall transaction, from origination and approaching buyers or sellers to structuring and negotiating the deal, and bring in valuation for the specific question of what something is worth. A useful way to see the distinction is that M&A advisers are commercially and relationship-driven, spending real time on origination and negotiation strategy, while valuation specialists are more purely analytical and technical, and the value they produce is one input the deal team uses alongside negotiating leverage, strategic rationale and financing terms.

Valuation vs audit

Audit checks whether a company's financial statements are fairly presented as a whole. Valuation is often a specialist input the auditor relies on for one specific area, for example when testing goodwill for impairment or checking a fair value estimate used in the accounts, since most auditors are not trained to build or challenge a full valuation model themselves.

Valuation vs private equity

Private equity firms invest their own fund's capital and own the businesses they buy, so their internal valuation work is a means to an investment decision rather than a deliverable in itself. Valuation specialists at an advisory firm are external advisers who determine value for a client, without taking an ownership position, and their conclusion has to be defensible to someone outside the room, such as an auditor, tax authority or court, rather than only convincing to an internal investment committee.

Valuation employers in the Netherlands

A selection of well-known accountancy and advisory networks with valuation teams active in the Netherlands. We only list firms we have verified, and expand this list over time.

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Valuation vacancies

We only show real, current openings with a link to the employer. Internships, working-student roles and analyst positions appear here. In the meantime, browse all current vacancies.

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How to prepare as a student

1Learn the core valuation methodsGet comfortable with discounted cash flow, comparable multiples and precedent transactions.
2Build strong Excel and modelling skillsValuation work is model-heavy, so speed and accuracy in Excel matter from day one.
3Understand basic accountingMany valuation questions start with the financial statements, so know how the three statements connect.
4Seek a deal advisory internshipAn internship at a Big Four or mid-tier firm is the most direct way to see valuation work up close.
5Practise building a simple modelTry valuing a listed company yourself using a basic DCF and a set of comparable multiples.
6Follow Dutch dealsReading about local transactions shows how valuation questions come up in practice.
7Write a focused one-page CVKeep it clear and centred on relevant analytical and modelling skills.
8Network with valuation professionalsAsk people in the field how they entered the practice and what a typical week looks like.

Recommended resources

Coming soonDCF and multiples fundamentalsA step-by-step introduction to the discounted cash flow method and comparable multiples valuation.
Coming soonBuilding a simple valuation modelPractical guidance on structuring a basic valuation model in Excel from scratch.
Coming soonUnderstanding goodwill and impairmentA basic explanation of how goodwill arises and how impairment testing works.

Frequently asked questions

What is valuation as a career?

Valuation specialists determine what a company, business unit, asset or financial instrument is worth, for purposes such as M&A transactions, financial reporting, tax planning and disputes. It is a specialist advisory discipline, usually within a Big Four or mid-tier firm.

Which methods do valuation specialists use?

The core methods are the discounted cash flow method, comparable company multiples and precedent transactions. Specialists usually cross-check the outcome of several methods before reaching a conclusion.

Do you need an accounting background?

A solid understanding of accounting is very useful, since valuation work starts from the financial statements. Many valuation specialists have a finance, economics or accounting degree.

How is valuation different from transaction services?

Valuation determines what a company or asset is worth. Transaction services checks the financial and operational facts underlying a deal, known as financial due diligence. The two disciplines often work together on the same transaction.

What does a typical valuation engagement look like?

An engagement usually starts by clarifying why the valuation is needed and which standard applies, followed by gathering data, building the model, cross-checking results and writing a report that documents and defends the conclusion.

Do you need a specific qualification such as RV or CFA?

Firms generally support employees who want to pursue a recognised valuation or finance qualification over time, but it is usually not required to start as a junior. Requirements vary per firm.

What is the work-life balance like in valuation?

It generally follows the rhythm of advisory work, with busier periods around deal deadlines and reporting cycles, and calmer periods in between. This varies by firm, team and time of year.

Can you move from valuation into corporate finance or M&A?

Yes, valuation experience is a strong foundation for a later move into corporate finance or M&A advisory teams, since it builds deep modelling and financial analysis skills that those teams rely on.

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