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Koji Bratcher, ASA Business Valuation Supervisor Los Angeles, CA |
“Valuation is an art, not a
science” is a phrase commonly used within the valuation community to describe
its somewhat imprecise nature. One of
the reasons I was drawn to, and continue to be intrigued by, the business
valuation profession is the fact that it requires quite a bit of judgment and
subjective analysis on the part of the appraiser. While the process tends to be similar when
valuing any company – talk to management and learn about the business, conduct
market and industry research, decide on methodology and perform calculations,
and, finally, conclude on value and perform tests of reasonableness – each step
requires some level of thought from the appraiser. Furthermore, the valuation community’s
collective thinking is constantly evolving, which often results in diverging
opinions among appraisers. This
evolution, coupled with the fact that business valuation requires substantial
subjectivity, keeps things interesting in the day-to-day work and overall
profession (and provides some level of comfort that I won’t be easily replaced
by a computer algorithm in the near future).
I made the switch to RSM in Los
Angeles in August 2015 from a very small boutique valuation firm in South
Florida. In all, there were four
professionals at my old firm, which required autonomy on the part of the
analysts. Working in a small firm, I
enjoyed having the responsibility of working on assignments on my own and the
flexibility to use progressive valuation techniques. One of the leading fears I
had when contemplating the move from a small, flexible firm to a large, public
accounting firm was being put in a box and restricted to analytical techniques
that are only approved by firm leadership.
Fortunately, those fears haven’t come to fruition, as RSM’s valuation
team has been open to expanding our firm-wide “valuation toolbox.” Although I have found there to be more
procedural “red tape” (to be expected at a large firm), nothing has restricted
any “out-of-the-box” thinking (in fact, this has been encouraged).
For me, one of the biggest differences
between working at a small firm and RSM has been the shift from a mostly
analytical role to a managerial position.
This has been one of the most rewarding aspects of my move to RSM, as I truly
have enjoyed training and teaching staff (and learning from them as
well!). I am, at heart, a “valuation
nerd” and savor discussions about valuation theory and “what makes sense” (even
over drinks at happy hour). Thus far, I have been nothing short of impressed
and humbled by the knowledge and talent of the individuals I have met at RSM
(from the intern level through partners).
My many conversations with other RSM professionals (even non-valuation
people) have pushed me to revisit my thought processes, which has helped me to
better see the “big picture” and further grow as an appraiser.
Overall, the move to RSM has been very positive for me and I am happy to help the firm deliver "the power of being understood!"