As valuation professionals, we each have varying degrees of expertise, experience, and reputation which has been earned, caught, and/or taught. When we are working with a client, it is easy many times to detect that our level of expertise in overall business acumen and bottom-line enhancement might exceed that of our client. After looking at financial reporting documents from many business operations, we see common errors or areas that could be improved upon to enhance the value of a business.
The dilemma we then face do we move from the valuation role into a consulting role when our initial scope of work may not lead us officially into that area. Or more directly, do we invest the time in helping a business become better (i.e. more profitable) when we may not see a return on the minutes and hours these types of discussions will entail?
In our pursuit of a larger top line for our personal practice, we sometimes will elect to not enter that conversation that would benefit someone else. On the other hand, those who do provide those coaching tips to a client or suggestions to improve business quality are in my eyes “true professionals” even if no one recognizes the effort.
To provide added value to clients leaving them as a better business operator is more important than one more LinkedIn post or Twitter feed that pats oneself on the back.
Recommended Reading
- What Does the Business Appraisal Process Look Like?
- Selection of Capitalization Rates—Revisited
- What Do the Financials Actually Tell Us?
- What Does a Business Appraisal Cost?
- When is the Use of a Weighted Average Cost of Capital Appropriate?
- In Support of Unsupportable Rates
- Unlocking Hidden Income and Assets
- Updated Levels of Value Chart
- Describing the Specific Risk Premium
Recommended Resources
- Valuation Practice Advice: Turn the Practice You Have Into the Practice You Want!
- Business Valuation for Marital Dissolution
- Market Data for Pricing a Business
- Review a Reviewed Demo Report
Recommended Courses
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