BizEquity launches accountants’ valuation tool

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A US group that provides online business valuations has revealed the launch of a dedicated product for accountants and business advisers.

The Accountant Office product aims to enable accountants to provide their clients with real-time insight into the fundamental question about their business – what is it worth?

BizEquity, the group behind Accountant Office, hit the headlines earlier this year after receiving backing from investors to launch in the UK.

To date the company has valued more than 29.4 million businesses worldwide, with revenues ranging from £25,000 to £250m.

Speaking to AccountingWEB prior to the launch Michael Carter, founder and chief executive of BizEquity, said: “Today, many accountants look to provide valuation services but do not have an automated system with built-in data comparables to help them do so. They rely on static data comparables and an Excel-based spreadsheet.  

“We have automated it and enable them to calculate valuations in real-time so they can do more valuations”, Carter continued. “The offline way takes 2-4 weeks to prepare; our service enables them to complete a valuation with three years of financial data in less than 10 minutes and generate a 29-page customised report.”

According to BizEquity more than 98% of the 200 million businesses worldwide fail to value themselves annually, largely due to the time and cost constraints, and business valuation is an emerging practice area that accountants are adding to their service offerings to better serve their existing client base.

Carter sees the market for valuation software expanding and colliding with big data-based corporate performance insight or business intelligence to “help businesses see how they rank against their peers, not just what their company is worth”.

“If you think about it”, Carter said, “every stove pipe system (CRM, ERP, BI) should feed the enterprise valuation management system. We are the first mover in this new multi-billion dollar market.”

Do you include valuation services as part of your practice offering? Would a tool like this be useful?

About Tom Herbert

Tom is editor at AccountingWEB, responsible for all editorial content on the site. If you have a story that might interest us or wish to comment on the site's coverage get in touch via the site's private message function or Twitter DM (@AWebTom)

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21st Oct 2015 12:09

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Well that made me smile.

It amazes me that there are still people gullible enough to buy products such as this.

Valuation is not about crunching historical data.  

Yes it can form part of a valuation, but that part takes about 10 minutes with a spreadsheet, or indeed on the back of an envelope. 

And without the burden of a 29 page generic report spat out of the thing.

 

 

 

 

 

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22nd Oct 2015 09:38

There are some tasks that cannot be performed by a computer programme and telling the prospective buyer of a business how much they should be paying for it is one of them.

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22nd Oct 2015 13:56

Looking forward

Business owners do ask us this all the time, so it's not too surprising to see a tool out there to automate this. We have also outlined a reasonable approach here.

Don't forget - it's not just about historical data - you'll want to look at achievable projections too.

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28th Oct 2015 22:40

Pretty Robust Offering

I recently got a demo of their product. Its amazing how far technology has progressed. They actually are using a combination of historical data & future projections. Looks like they have valued 29 million businesses.

Think we accountants could use them as a complementary valuation tool & the marketing aspect they provide. 

 

 

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29th Oct 2015 01:19

2 questions.............

1. Having entered your data into their valuation tool, was the valuation reasonable and inline with your expectations?

2. Are you on commission, or their payroll?

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29th Oct 2015 09:06

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@sheepy I assume you spotted this Sarah only joined to post that one response?

#Socialmediafail as I think the young people might say.

 

 

 

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29th Oct 2015 11:54

Haha

I too had a good laugh.

So this is what happened I did a valuation and it came up to 25MM, my client went in and found these guys: they said 22.5 or something

Lets not be suspicious of everything! #SocialMediaFail Seriously?!

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30th Oct 2015 09:13

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Well the thing is 'Sarah' the product is essentially a waste of time, they always are.  They have been about since as long as i have wielded a calculator. 

Then you come along, having just joined the site this very day, and your only and only post is on this thread making a claim which sounds exactly like the sort of thing a PR person would say.  

Moreover your new post says you valued a company at 25MM.  I have no idea what 25MM is. 

Accountants would say £25 million. Or more likely they would say £20-30 million.  You cant value a company as a single figure, or at least if you do, you probably don't know what you are doing and have applied spurious accuracy.   Which is a bit of a worry if you have clients of that size.  

Hence the post.

I should point out, suppliers do often post on here - as themselves - this is fine. 

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