Sample Discipline Investigation Essay
Today, the rapidly increasing business activities have created some chief challenges that must be overcome if most business will succeed. The complexity of operations and the speed of the same in the business arena can’t be ignored when we think about the roles of valuation officers in any business setting. It is also worth to note that the volume and the rate at which the need of valuation officers in banks, private corporations, in stocks and securities trading companies, in valuation agencies is rising and in attempt to catch up with this trend, many scholars have left their original careers to join economics and finance related careers where they have a chance of becoming valuers/ or valuation offices.
Ideally, the key role of valuation officers is to provide the analysis the existing firms and calculating the worth of a company by looking onto its trends in the stock market. Also, since the money in banks is not entirely owned by the bank itself, but its customers, wise decisions while investing it must be made or else negative returns can be realized. I choose to interview a valuation office because I am also interested in becoming one. I have strong analytical and mathematical skills that I believe will be of great importance in this field. Also, by the virtue that valuation officers are the drivers of the economy, without them most businesses will not be able to make wise decisions while investing their money in stock markets. I want to help companies make the right choices when it comes to investing in stock analysis, in an event of mergers and acquisitions, and in any other business operation that requires strong foundation of valuation skills.
Background and Career Path
In my interview, I interviewed Prof. Bahram P who is a famous valuation officer at Private Investment bank and also a university professor at San Jose State. Mr. Bahram has an undergraduate degree where he majored in Economics and a Master in Business Administration. In fact, Prof. Bahram P was initially in economics, he was first pursuing a biology major but later decided to join an economics class as a general education class, not knowing that in finance and economics is where his future lies. When still pursuing his first degree, he got a part time job and a nearby commercial bank. It was at this time that he realized that his interest was not interested in biology. Working at the Commercial bank was an eye opener for him and he realized his full potential and his passion. From his younger years, Bahram had special interest in mathematics and finance. As per him, both finance and mathematics fields were practical and vital in accelerating the growth of economy to unimaginable heights. The two fields are not only of greater importance to the economy, but even to the lives of individual people. Every person in any given country needs mathematical and financial skills in-order to be able to handle their day to day businesses. Professor realized that he liked working with people and talking to people and being in biology field, this would incapacitate his potential. All these facts made him choose business as his major and therefore made a decision to hold on it as his career.
For one to become a valuation officer or rather to be in the economics-business field, one has to have a strong foundation in mathematics, and Accounting which must be coupled with strong analytical skills and excellent communication skills- that is both written and oral/verbal. These are just are just basic requirements but one needs to have passion for the same. Research has shown that people who love what they do have higher chances of producing better results compared to those who are in the same field but are driven by other motivations, for example say- a better salary. In his career path, the major surprise or a setback was the fact that mathematics and accounting skills were the basics of the career path he had taken. Despite the fact that he loved mathematics and finance from his tender age, he still had some difficulties comprehends some topics. He had to put extra effort unlike in biology where things were not complex and involving. Another major surprise the difference in what is taught in classroom and what is done in the field. During his school life, he thought that what he was learning in class will be the same things he will find in the field, but he was able to cope fast as he is a fast learner and hence he was able to adapt to his work field fast enough such that his career was not affected.
Roles and Responsibilities
The roles and responsibilities can be looked at in two levels. These are: Macro perspective and Micro perspective. At macro perspective, the main job of a valuation officer is to sell private companies to other companies. This is because the officer is supposed to evaluate companies’ portfolios and calculate stock options in order to arrive at the actual value of the company. The officer makes the investment decisions when his/her company wants to invest in a given company. In the bank where he is employed, he is responsible in assessing the companies that seeks loans and advices the loans department on the worth of the company (Peters). At micro perspective, a valuation officer is responsible in updating financial models, getting in touch with new businesses, and other existing funds that seeking funds or loans from bigger corporations. Day to day interactions with CEOs and CFOs of various companies is must.
The greatest challenge for any valuation officer is the assumptions that are involved in evaluating the models. All the models involved in this field must be validated and supported. This problem intensifies when one is dealing with small and private companies which do not trade easily in the market as most of the assumptions involved in their operations are inaccurate and they must be validated (Akcay).
These involves: Bank and Insurance product, Analysis in private equity, balance sheet, ratio analysis, income statement, Investment banking and Valuation Company, and Sales and dealmakers among others
A bachelor’s degree in a business related field, absolute understanding of mathematics, finance, and accounting, and finally special interest in the same.
As a valuation officer, the major type of writing involved is writing of weekly economic reports. It is worth to note that professional writing is vital in this field as all assumptions involved in the evaluation procedures must be clearly explained in simple terms to those who do not understand the analysis terms. Reading is also important as it keeps the officer up to date with the events occurring in the business markets. The documents that the officer reads most are: research materials, business journals, and daily newspapers (Soy and Triado). The key audiences for the written communications are the CEOs and CFOs of private companies, firm managers, and also auditors. The key communication skills that Prof. Bahram finds vital in his day to day operations are; excellent language, timely response of clients requests, time management, and also the ability to explain ideas properly. According to Prof. Bahram, honesty is the most important thing that any valuation officer must uphold in his day to day operation. One should maintain high levels of transparency in his operations.
From this discipline investigation interview, I have gained a solid understanding of the process of becoming valuation officers, challenges that are involved and the surprises that I am bound to encounter in my career path. Contrary to my expectations, the way to become a stable valuation officer is not easy, but since I have the passion for the same, I will do my best and keep focused until I become one. In addition to views of Prof. Bahram I believe that a basic knowledge of business education from tender ages is paramount in making up of a good valuation officer (Soy and Triado). One must be driven by passion and knowledge if he or she is to become a stable valuation officer. Also practice is vital in this profession. From tender ages, children with business career prospects must be exposed to the real life scenarios so as they can develop their careers in line with what is happening in the market.