BVM PRO: WHY THIS SOFTWARE WORKS

ValuSource

800.825.8793

Sales@Valusource.com

www.ValuSource.com

1

DISCLAIMER

All rights reserved. No part of this work covered by the copyrights herein may be reproduced or copied in any

form or by any means—graphically, electronically, or mechanically, including photocopying, audio/video

recording, or information storage and retrieval of any kind—without the express written permission of the CTI,

NACVA ,and the presenter.

The information contained in this presentation is only intended for general purposes.

It is designed to provide authoritative and accurate information about the subject covered. It is sold with the

understanding that the copyright holder is not engaged in rendering legal, accounting, or other professional

service or advice. If legal or other expert advice is required, the services of an appropriate professional person

should be sought.

The material may not be applicable or suitable for the reader’s specific needs or circumstances. Readers/viewers

may not use this information as a substitute for consultation with qualified professionals in the subject matter

presented here.

Although information contained in this publication has been carefully compiled from sources believed to be

reliable, the accuracy of the information is not guaranteed. It is neither intended nor should it be construed as

either legal, accounting, and/or tax advice, nor as an opinion provided by the Consultants’ Training Institute

(CTI), National Association of Certified Valuators and Analysts (NACVA), the Institute of Business Appraisers

(IBA), the presenter, or the presenter’s firm.

The authors specifically disclaim any personal liability, loss, or risk incurred as a consequence of the use, either

directly or indirectly, of any information or advice given in these materials. The instructor’s opinion may not

reflect those of the CTI, NACVA, its policies, other instructors, or materials.

Each occurrence and the facts of each occurrence are different. Changes in facts and/or policy terms may result

in conclusions different than those stated herein. It is not intended to reflect the opinions or positions of the

authors and instructors in relation to any specific case, but rather to be illustrative for educational purposes.

The user is cautioned that this course is not all inclusive.

© 2014—1997 NACVA • 5217 South State Street, Suite 400 • Salt Lake City, UT, 84107—ALL RIGHTS RESERVED.

The Consultants' Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional

education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints

regarding registered sponsors may be submitted through its web site: learningmarket.org.

2

The Presentation will include periodic online Polling Questions/Codes to assess continuous participation and to determine the program’s effectiveness.

You MUST respond to all polling questions (live) or complete a quiz (recorded) in order to receive CPE credit.

If you view the webinar with a Smartphone or Tablet you may NOT be able to answer polling questions that are required for obtaining CPE credit.

If you are viewing this presentation as a recorded webinar it will not qualify for NASBA QAS CPE credit. You can however, obtain CPE credit per the instructions included with your recorded webinar purchase.

© 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.

4

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

5

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

6

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

7

ARE YOU IN THE SOFTWARE BUSINESS

8

ARE YOU IN THE VALUATION

BUSINESS

or

Overview

9

BVM Overview: Basic UI

10

BVM Overview: Excel is the calculation tool

11

BVM Overview: Report Writer

12

BVM Overview: Report Writer

13

BVM Overview: Single Period Model

14

BVM Overview: Single Period Model

15

BVM Overview: Single Period Model

16

BVM Overview: Single Period Model

17

BVM Overview: Single Period Model

18

BVM Overview: Single Period Model

19

BVM Overview: Single Period Model

20

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

21

Standardization Example 1

22

Standardization Example 2

23

Standardization Example 3

24

Automation

• Profound impact on realization rate

• Allows time for analysis rather than menial work

• Reduces error rates

25

Example 1

26

Example 2

27

Example 3

28

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

29

Project Example 1

30

Project Example 2

31

Project Example 2

32

Project Example 3

33

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.

34

Template Example 1

35

Template Example 2

36

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

37

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?

38

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

39

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.

40

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.

41

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.

42