Forty percent of respondents to a recent BVWire poll cite practice management as their biggest concern for 2016. This includes issues such as competition, fee pressures, hiring, succession planning, and the like.
A number of respondents included write-in comments, and several noted an increased level of competition and a pressure on fees. One insightful comment: “Prospects seem to increasingly focus on the lowest bids under the assumption or misunderstanding that they are buying a commodity product. This problem is compounded by competitors' apparent willingness to undercut one another to win projects. Are there too many valuation professionals chasing too few opportunities?” Another respondent mentions the same issue and offers a suggestion: “Customers will ‘shop’ us all. However, we should be alluding to the specialized nature of the work we perform and should get paid accordingly.”
For the other concerns cited by valuation practitioners, please click here.