Overview of Qualitative Assessment
In business valuations, valuation experts adjust valuation multiples with discounts to account for the unique factors of a company. These factors include aspects such as marketability and specific risks, which are compared to benchmark companies.
The Qualitative Assessment Co-Pilot in Valutico further streamlines this process by suggesting risk scores based on relevant industry data. These suggested risk scores impact critical valuation components, including:
Cost of Equity
Discounts to Trading Multiples
This feature enhances both efficiency and accuracy by automating the calculation of these discounts, ensuring that the valuation is better aligned with the unique characteristics of the company being assessed.
Navigating to the Qualitative Assessment Module
Accessing the Module
To begin, navigate to the Qualitative Assessment module within the valuation flow.
Starting a New Assessment or Selecting an Existing Template
You have the option to either:Start a New Qualitative Assessment: Create a fresh template.
Select an Existing Template: Choose a previously created template from the list.
If you select an existing template, the screen will load that specific template for editing.
If you choose to start a new template, you will be taken to a blank screen.
Using the Co-Pilot on a New Template
Co-Pilot Introduction
When starting a new qualitative assessment, you will be greeted by the AI Co-Pilot.
Co-Pilot Features
The AI Co-Pilot enables you to retrieve relevant data from public sources, which will automatically update the values within the template.
Additionally, you can manually adjust these values to your preference. The Co-Pilot will also suggest risk scores based on industry data, influencing the Cost of Equity and Discounts to Trading Multiples for greater accuracy.
Saving a Qualitative Assessment as a Template
Saving Your Progress
Once you are satisfied with the values entered in the qualitative assessment, you can save it as a template.
Save Options
Save as a New Template: Create a new template for future use.
Update Existing Template: If you'd like to update a previously created template, select this option to overwrite the existing one.
Editing a Qualitative Assessment Template
Accessing the Template Settings
To edit an existing qualitative assessment template:Click the Settings (cog) icon in the menu.
A drawer will appear, allowing you to make changes.
Editing Template Sections
Within the drawer, you can:Select or Deselect Sections and Questions: Customize which parts of the template should be included.
Be sure to Apply Changes to save any modifications.
Selecting an Existing Qualitative Assessment Template
Navigating to the Template Selection Menu
Click on the “Select a Template” menu button to choose an existing template.
Template Selection
Select the desired template from the list. The screen will update to display the selected template for review or modification.
