“If we remove the human element, our valuations will be nothing more than computer-generated nonsense,” writes Robert E. Kleeman Jr. (OnPointe Financial Valuation Group LLC) in Business Valuation Update. Kleeman, who has been in the BV world for over 40 years, says a lot has changed, including more of a reliance on data and a move away from using judgment, common sense, and reasonableness. “The one thing I can state has not changed is the need for practitioners to use their mental capabilities,” he writes. “Data are data. They must be converted into something usable to produce a valuation conclusion. The data and conclusion must be reasonable. The valuation professional must use his or her judgment in many areas of the engagement.” His article, “A Veteran Valuer Looks at the BV Profession,” gives his perspective on some other issues, including the danger of formulas, the state of BV training, and “credential madness.” The article is in the August 2018 issue of Business Valuation Update.
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