The valuation of a business is undoubtedly a necessity for every small or medium company. Every company owner seeks to get his or her company evaluated from an authentic source. The business valuation report will come in handy to the company owner in several important circumstances during the operations of the company and even during its sale. Business valuation is such a huge necessity in the capital market that a number of third party service agencies have cropped up who offer solutions to business valuation. Most of these services are authentic in their working and also quality standard compliant. However, with the advent of digital technology, there had been a shift in the buying behaviour of companyowners. Earlier, the company owners were fully reliant on the offline company evaluation firms, who offer manual company evaluation services. Today, the market is flooded with many software and online applications which serve the function of business valuation as effectively as offline business valuation firms. In fact, a few such software are more efficient in terms of speed and accuracy.’
Both online and offline business evaluation processes demand similar business valuation resources such as company documents. The documents which reveal the balance sheet, profit and loss, cash flows and projected trends of the company are used by both the offline evaluation firms and the valuation software in exactly the same way. However, online business valuation software packages are gradually being developed to be so smart that they can deduce the projections using limited data. This scope of innovation gives leverage to online business valuation over offline company valuation. A few company owners still advocate the use of offline business valuation, as they consider human judgement superior to that of a software. However, it is human judgement only which can create nuisance. There had been instances when dark horses from business valuation firms leaked confidential information about a company to its rivals. Such unethical practices are done so stealthily that they cannot be traced. The use of digital applications for business evaluation fully succeeds in eliminating the risk of data theft. Besides, the use of online business valuation process also saves both time and money on the part of the companyowner. Manual business evaluation process being a tiresome job, demands huge amounts of money for each assignment. Moreover, the process, when done manually, takes a considerable amount of time, which is a great disadvantage to the company owner. Still, there is no guarantee that the business valuation staff had done all the calculations in an accurate manner. The use of online technology is undoubtedly more advantageous in all these aspects. The purchase of a software for the evaluation of a company is a one-time investment; and the same software can be used multiple times. The best thing is that the use of software guarantees both authenticity in the calculations and the speed of reporting.