Darrell acknowledges that over the years, there has been considerable debate over the need for software to perform business valuation. Valuators who have developed their own worksheets and reports argue that doing it themselves in Excel and Word provides the flexibility and transparency they need. Converting to valuation software is also time consuming, and lacks the flexibility and transparency offered by Excel and Word.
However, valuators, like Darrell who have embraced ValuSource valuation software, agree that the benefits of valuation software far outweigh both the cost and the learning curve. They also find ValuSource’s software has the same level of flexibility and transparency of Excel and Word, because it’s built on top of Excel and Word. Darrell D. Dorrell, a long-time champion of ValuSource software argues it is time for practitioners to join the twenty-first century and focus on the quality of their valuations, and not spend so much unneeded time building and maintaining spreadsheets and reports.
How ValuSource Software helps Darrell
ValuSource Pro enables Dorrell and his associates to perform comprehensive valuation analysis using a standardized process, which takes less time and has better quality control than doing it manually in Excel.
Darrell really appreciates that ValuSource software is built on top of Excel, so it is totally customizable, transparent (he can see every formula) and can accommodate any situation that may arise in one of his valuation engagements. For example, Darrell has added customized forensic indices to the ValuSource analysis, like CRO11 and other tests to evaluate the quality of a client’s historical financial reporting. Theses indices are the same ones he uses in forensic work and he was able to quickly add them to ValuSource’s software.
What does Darrell say to sceptics who worry about cost?
When you factor in the time it takes to develop and maintain your own spreadsheets and reports, a valuation software package investment is a non-issue. The investment in a package saves a considerable amount of time and allows the valuator to develop more persuasive conclusions because they can spend more time on the valuation analysis and assumptions. Darrell is big on the quality of his working papers and reports and finds that ValuSource software minimizes the chance of making mistakes.
Darrell also reminds valuators that whether you choose to use Excel or ValuSource valuation software, there is no substitute for your expertise, knowledge, education, or experience. Instead, he says ValuSource is a tool to enhance responsiveness and maximize your time for increased profitability.
Why Darrell uses ValuSource valuation applications?
- The software is created with thorough requirements, peer review, and quality control
- Minimizes the chance of human error
- Provides practitioners with a much broader and deeper array of alternatives
- Provides an audit trail of inputs and assumptions, which is especially important in court
- Saves time because it automates and standardizes the valuation process
- Follows a logical process for unbeatable accuracy
- Offers integration of the most current data
- Generates standards-based reports
- Easy to make changes in the analysis that flow through to the valuation report
About Darrell D. Dorell
Darrell D. Dorrell is a founding partner of financialforensics®, a boutique forensic accounting practice based in Lake Oswego, OR. His practice focuses on business valuation and financial forensics throughout the US and is a nationally recognized expert witness, speaker, and author and has trained many organizations in twenty-four U.S. states, Canada, and Puerto Rico, including the FBI, U.S. Department of Justice, SEC, Bankruptcy Bar Association, AICPA, NACVA, IMA, PricewaterhouseCoopers, and thirteen state CPA societies.
He has authored nearly seventy technical articles in nearly two dozen professional journals including several for the U.S. Department of Justice.
See Darrells’ article, “Bulid or Buy” here.