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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.
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.
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.
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.
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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@sheepy I assume you spotted this Sarah only joined to post that one response?
#Socialmediafail as I think the young people might say.
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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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.