Veteran valuation experts have raised red flags about relying too much on technology and automation. This advice is directed particularly to young BV practitioners who have grown up surrounded by automation. But their young colleagues are well aware of this issue and share their concerns.

Watch out: Young up-and-coming BV experts on a recent panel feel that technology will not totally replace the human element in the valuation process. They say there is “so much judgment” involved that technology cannot handle the entire process. There was even the comment that too much automation makes someone a “little nervous,” feeling that experts may lose some understanding of the underlying concepts. But one panel member points out that automated tools could actually enhance understanding by freeing up analysts’ time typically spent on number crunching so they could spend that time learning about what’s behind all the crunching.

If this panel is any indication of young practitioners as a whole, there’s no worry that professional judgment will take a back seat to computer models.

The panel also talked about how and why they chose valuation as a profession, what they need from their firms in order to develop, and other matters. Full coverage of the session is in the March 2023 issue of Business Valuation Update .

Panel members were Dalton Hopper (BMSS Advisors & CPAs), Amy Shaw (Soukup, Bush & Associates), and Nick Contey (DiGabriele, McNulty, Campanella & Co.). The moderator was Bob Lewis, president of the Visionary Group. The session was conducted at the December 2022 NACVA Business Valuation & Financial Litigation Super Conference.