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BVM PRO: WHY THIS SOFTWARE WORKS
ValuSource
800.825.8793
Sales@Valusource.com
www.ValuSource.com
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© 2014 National Association of Certified Valuators and Analysts 3
Presenter:
• Dave Miles, dmiles@valusource.com, 719-799-6001
• I have been the Business Valuation Manager at
ValuSource for over ten years. I am the valuation
specialist and CPA on staff. The software has been
available in different incarnations since 1984 and I was
personally involved with every release of ValuSource Pro,
BVM Pro and the Report Writer in the last decade. I have
talked with thousands of valuators on how to accomplish
the task at hand. Prior to joining ValuSource, I was the
CFO of an 80 million dollar financial institution.
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OBJECTIVES
• Learn how BVM Pro and the Report Writer can be a tool
for your practice
• Understand the difference between customize and
standardize
• Standardization
• Automation
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Limitations
• Does not replace expertise
• Still need to know Excel and Word
• Junk in is junk out
• Is not meant to be a complete engagement tool
• No engagement letters
• Limited checklist for the entire engagement
• Meant for equity valuations – not asset transactions
• Meant for valuations – not economic damages; not stock
compensation
• Learning curve
• Doesn’t eliminate ticking and tying; but it is reduced
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The Pain Point
MS OFFICE
• Excel and Word
• Time to create templates
• Time to manage templates
• Quality Control or are the schedules replicable
• Are the calculations correct
• Customized -- I am in control
SOFTWARE
• Built on Excel and Word
• Standardized templates with
ability to customize
• Automated tasks
• Many analysts use the
templates creating an
unparalleled review
• Ability to get ValuSource to
customize your template –
outsource menial tasks
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ARE YOU IN THE SOFTWARE BUSINESS
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ARE YOU IN THE VALUATION
BUSINESS
or
Overview
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BVM Overview: Basic UI
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BVM Overview: Excel is the calculation tool
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BVM Overview: Report Writer
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BVM Overview: Report Writer
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BVM Overview: Single Period Model
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BVM Overview: Single Period Model
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BVM Overview: Single Period Model
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BVM Overview: Single Period Model
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BVM Overview: Single Period Model
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BVM Overview: Single Period Model
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BVM Overview: Single Period Model
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Standardization
• You can save time
• Adds to credibility
• You can prevent errors
• Things you do over and over should be done the same
way
• You can increase the realization rate
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Standardization Example 1
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Standardization Example 2
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Standardization Example 3
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Automation
• Profound impact on realization rate
• Allows time for analysis rather than menial work
• Reduces error rates
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Example 1
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Example 2
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Example 3
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Customization
Project Level
• Ability to adjust to facts
and circumstances
• Small nuance in
presentation can increase
credibility
• Not black box software
Template Level
• Ability to customize
templates
• Both the analysis and the
report
• Creates the highest level
of standardization
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Project Example 1
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Project Example 2
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Project Example 2
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Project Example 3
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Customizing Projects
• With few exceptions, anything you can do in native Excel
can be done to a project
• I have one customer who has a macro that turns a number into
words, 100 to One Hundred. That is then turned into hot link to the
word report.
• Only the project is customized, not re-useable
• Not black box software
• In native Excel, the formulas can be followed to see where things
come from.
• You can over write any formula for a specific circumstance.
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Template Example 1
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Template Example 2
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Template Example 3
• Things that can and should be done to both the report and
spreadsheet.
• Inserting boiler plate graphics like the level’s of value into the report
• Creating schedules used often, such as compensation,
depreciation, statistics, quartile analysis – what do you do that is
not in the standard model
• Changing the fonts and sizes – This will give the impression that it
is intellectual capital of the firm.
• Do you like the calculated cell and then a selected cell? Change it if
you don’t.
• Do you need specific footnotes in the reports? Add them.
• The options are the same if you used Excel or Word.
• Customize to do valuation the way you do valuation
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Credibility
Darrell D. Dorrell CPA/ABV, MBA, ASA, CVA, CMA
What if opposing counsel asks me during deposition or
cross-examination whether I used a package?
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It Depends – One answer
• When opposing counsel asks me that question I tailor my
answer to the opposing expert. If I have a high regard for
him/her I will reply similar to: "Yes, I have used a package
for many years since my client prefers for me to spend my
time analyzing instead of building worksheets." I then
explain the inherent advantages of packages versus self-
constructed Excel worksheets
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It Depends – Another Answer
• If I don't have a high regard for the opposing expert I will
reply similar to: "Yes, anyone who uses an Excel-based
approach is not committed to valuation work." I then
explain the inherent advantages of packages versus self-
constructed Excel worksheets.
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It Depends – Another Answer
• I may also state (depending upon the perspicacity of
opposing counsel) that, "Not using a valuation package is
akin to preparing income taxes with a paper and
pencil." In most cases, opposing counsel quickly moves
to another topic.
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Conclusion – What do you want for
your valuation practice
• How do I do the best valuation work possible?
• How do I increase the value of my reputation?
• How do I gain market share or the quality of my client
list?
• BVM Pro is part of that answer.
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