As the business valuation landscape continues to evolve, so do the skills needed to stay ahead. Beyond technical expertise, the ability to effectively communicate and demonstrate competencies is becoming increasingly critical. One notable shift, affecting not just our industry but hiring processes across the board, is the rise of the skills-based interview.
For professionals in business valuation, excelling in these interviews can be crucial for advancing your career. Whether you’re positioning yourself for leadership roles within your firm or exploring opportunities at a new organization, knowing how to navigate this modern interview format can set you apart from the competition.
The Rise of Skills-Based Interviews in Business Valuation
Historically, interviews in our field, like many others, leaned heavily on credentials and degrees. However, companies are now recognizing that real-world skills and demonstrated performance are far more predictive of success. Major accounting and consulting firms including the Big4s have shifted to skills- and competency-based hiring, and we’re seeing this approach trickle down to firms within our industry as well.
The structured skills-based interview focuses less on how you present yourself and more on how you’ve applied technical and soft skills to achieve measurable outcomes. This evolution is crucial for valuation professionals, as it shifts the focus to competencies that directly impact client outcomes, including financial analysis, negotiation, and strategic decision-making.
Key Strategies to Excel in a Skills-Based Interview
Here’s how you can prepare for and ace a skills-based interview, with a focus on the unique competencies required in business valuation:
1. Decode the Job Description for Key Skills
The job description is your first guide to understanding what will be tested. For a valuation role, you’ll likely find a heavy focus on financial modeling, scenario analysis, report preparation, and stakeholder communication. But don’t overlook the importance of soft skills like problem-solving and client interaction, which are equally critical in many firms today.
Before an interview, break down the job description and reflect on the specific skills you’ve developed. Identify both the technical (e.g., mastery of valuation methodologies) and soft skills (e.g., managing client expectations) you’ll need to highlight during the interview.
2. Sharpen Your Technical Edge
Skills assessments are becoming a common feature of interviews in business valuation. You may be asked to analyze financial statements or apply valuation techniques on the spot.
In preparation, revisit your core technical skills: discounted cash flow analysis, market comparable approaches, and precedent transaction analysis. Be ready to walk interviewers through your approach, methodology, and conclusions in real-world scenarios. You should also be able to articulate the assumptions and adjustments you made and how they impacted the final valuation.
Be ready for questions such as:
- Walk me through a DCFf valuation.
- What are the components of WACC?
- What is working capital?
- Tell me about the different valuation methods and when they should be applied.
- Explain some common normalization adjustments a valuator may consider in performing business valuations.
- What are the value drivers for companies in industry X?
3. Craft Your Skills Stories
Storytelling is an underrated but powerful skill in any interview. It’s not enough to say, “I conducted a business valuation.” You need to demonstrate how you solved complex problems through specific examples.
For instance, discuss a time when you handled a particularly challenging client or addressed an issue with insufficient data during a valuation. Explain the situation, the steps you took, and the final outcome. These examples are not just stories; they are tangible proof of your ability to apply your skills in high-pressure, real-world situations.
4. Align with Company Values
Beyond technical prowess, companies want to know that your values align with their corporate culture. Research the firm’s mission, core values, and client philosophy.
For instance, if a company emphasizes client relationships and long-term value creation, come prepared with examples of how you’ve nurtured client relationships or added value beyond the scope of an engagement.
Always be ready for questions such as “Why our company? Where do you want to be in five years? You prefer to work in a team environment or independently?” These are traditional interview questions but they are useful for interviewers to assess cultural fit.
These examples demonstrate that you not only possess the required technical skills but also resonate with the firm’s ethos and long-term goals.
5. Spotlight Your Individual Impact
In a team-based profession like business valuation, it’s easy to fall into the trap of discussing team achievements. While collaboration is important, structured interviews place an emphasis on individual contributions.
Make sure to highlight your specific role in successful valuations or projects. Whether you were the one who conducted the sensitivity analysis that guided a key decision or led the client through complex financial scenarios, focus on how you personally made an impact. Be prepared to articulate both the “how” and the “why” behind your actions and decisions, as well as the measurable results of your work.
Preparing for Your Next Move
As business valuation professionals, we must constantly adapt to new tools, regulations, and market trends. The same is true for our approach to interviews. The shift toward skills-based assessments is a call to action for professionals in our field to focus on what really matters: demonstrating the tangible value we bring to clients and firms alike.
By mastering the art of the skills-based interview, you not only strengthen your ability to secure new roles but also enhance your career within your current firm. The more clearly you can articulate and demonstrate your skills, the more likely you are to stand out as a leader and expert in business valuation.
So, whether you’re seeking to advance within your firm or exploring new opportunities, it’s time to roll up your sleeves and prepare for a new kind of interview. Your résumé might open the door, but your skills will earn you a seat at the table.
