08 June 2009

Do-it-yourself business valuations

I recently saw a website offering companies to teach their employees "all there is to know" about business valuation in 71 minutes. After listening to the course they can go and do business valuations by themselves.

At first I was amused. Anyone who does business valuation for a living knows it's all about experience.

But then I got scared. What if people actually listen to this advice, take this "course" and start making business decisions based on such valuations? Would you let someone who took a 71-minute course on brain surgery perform one on you? No? But you wouldn't mind making a decision to buy or sell a company based on a valuation derived to by such a "professional"? Sure, let's save a few thousand in order to potentially waste millions.

I know, it's a free world, people can do as they please. But at least it can't be said I didn't warn about potential adverse effects of decision making based on such inputs and analyses. My conscience is clear.

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