rod burkert

Turn the practice you have into the practice you want!

Let’s connect …

What can be done to keep more people from dropping their ABV?

by Leave a Comment

Greetings from Colorado. The RV is parked just outside of Rocky Mountain National Park. We are at 8,500 feet of elevation and have incredible views, cool temps, and low humidity. All for $11/night with my Lifetime Senior National Parks Pass.

Last week I announced that I dropped my ABV credential. I made it clear that I believed it was the right decision for me … but I was still curious about you might think.

So this week I thought I would publish those reactions … as well as offer my take on what I think needs to happen to keep more people from dropping a valuation credential.

And if you’re new here, welcome aboard. This is what we do!

Domain names for sale: StandardOfValue.com and PremiseofValue.com. Great .com domain names for a new BV firm or parking place for a BV-themed blog, newsletter, podcast, or video series. Email me for details.

Your reactions

These are presented in the order that I received them. All of the people who responded are full time BVers … names have been withheld for obvious reasons.

Appears foolish from a CPA/ABV, CFA. (I messaged this person back asking him why he believed this but did not receive a reply.)

I dropped my entire AICPA membership, and yes, I am disgruntled with the AICPA.

As a former member of the ABV Credential Committee, I am sorry to hear you dropped the ABV credential. However, I think your reasoning makes sense. I do a lot of divorce work, so the credentials are helpful to me….

You are advising lots of younger folks in small shops. What may be good for you at your “advanced age and stage” might not be good advice or leadership for the group you are seeking to influence. My advice to young professionals is to get a couple of key credentials. Almost all of our young hires work on the CFA (great training), and then, they get an ASA or something else. We sell credentials as a shop, and not just for litigation. We all need something to help us stand out in a crowded field. Does one stand out better with one less recognized credential? At my age, it doesn’t matter, but in the 20s, 30s, 40s, and 50s, it can matter. And credentials don’t have to matter often to be worth more than the price of continuing admission….

As you probably know, I never chose to become an ABV. I always felt that the CVA was enough. And I believe that has been true. When I’m working on a legal matter, the attorney that has engaged me typically has more credentialing questions about the opposing attorney’s expert than my own. It boils down to the fact that my most important “credential” is the quality and credibility of my prior work that helped me get the next engagement.

I hope you report the results of your question on the ABV. I have felt exactly as you do, just I suppose scared to take the irreversible leap. I did drop the CFF forensics certification they handed out some years ago, not sorry about that. I don’t think I would miss the ABV either….

It was a smart move. The CVA credential is the best.

I dropped mine last year. I know I don’t do much to market, but no one seems to know what it is or cares.

In real life

First, I will tell you that I have had some reservations … how could I not? Probably because of the “belts and suspenders” personality trait that draws many of us to the Accounting and BVFLS professions.

Second, our credentials are a funny thing. Partly because we can accrue so many with relative ease. And partly because only a small number of people outside of valuation professionals know what they mean.

Here are examples universally recognized designations: Dr. or MD, DDS, JD, Esquire, Ph.D., and of course, CPA. No one goes “Huh … what’s that?” after you say you are one of these.

Our primary US valuation credentials – ABV, ASA, CBA, and CVA – are just the beginning of the proverbial alphabet soup that greets our most important clients … business owners and attorneys. Even the CFA charter, which I think is the most rigorous and prestigious of the valuation credentials, is not well recognized outside of the valuation/investment industry.

And therein lies an opportunity for any credentialing organization that really wants to stand out and help its BV members get more work– a focused marketing campaign that educates (primarily) business owners and their trusted advisors about who we are and what we do.

Right now, I see such a campaign as the only way we – as a profession – can combat the inroads being made by the likes of BizEquity and other online BV calculators. Otherwise, each appraiser is left to their own devices about educating their leads and prospects about the value they bring to the table over a black box solution.

THAT would make for a valuable credential.

Your thoughts?

Related posts

Has anyone noticed that we are being disrupted?
So I got this call from the AICPA …

Cheers!

 

 

 

Action Items:

– If you like what I write about, tell a colleague.

– If something resonates and you want to reach out directly, email me.

– If you think we share common interests, connect with me on LinkedIn.

– If you want a sense of how well your practice is working for you, take this Practice Self Assessment.

I dropped my ABV credential

by Leave a Comment

Last week I wrote about 2 sections your engagement letter might be missing – an understanding of the engagement and ongoing client communication. I hope my rationale for including them inspires you to add them to your engagement letter.

On to this week. I recently dropped my ABV credential. It’s not a big deal. But after 20 years of being an ABV, I felt that the credential wasn’t providing enough value for me. Of course, you may feel differently.

And if you’re new here, welcome aboard. This is what we do!

From James Clear (author of Atomic Habits): How long will you put off what you are capable of doing just to continue what you are comfortable doing?

Like many of you, I recently renewed my AICPA dues.
And I have gone from a CPA [slash] ABV [comma] CVA to a CPA [comma] CVA.
That’s right … I dropped my ABV credential.
Why on earth did I do that?

Hi. I’m Rod Burkert. And welcome to my Practice Development Corner, the place where business valuation professionals like you come to learn how to turn the practice they have into the practice they want.

First, let me make it clear that I have no beef with the AICPA, and I had no qualms when the AICPA offered the ABV credential to non-CPAs.
I have been an ABV credential holder since 1999.
That was the second year the ABV was offered.

But the fact is that I cannot recall ever getting an engagement because I had a specific valuation credential … or losing an engagement because I did not have a specific credential.
And as a CPA, I still must follow the AICPA’s Statement on Standards for Valuation Services – the same as if I were an ABV.

So my arrangement letters and reports are still going to say that I will … and did … comply with the SSVS.
I can even still say that I am in compliance with the recertification requirements for the ABV. Even though I am not an ABV.
Similar to me saying that I am in compliance with USPAP. Even though I am not an ASA.

The truth is I stopped putting my credentials on my official and unofficial business cards several years ago.
Why? Frankly, I just stopped caring about valuation credentials because:

  1. Clients and referral sources do not really understand them, and
  2. When everyone has a credential, they do not differentiate us.

Your mileage may vary if you work on a lot of litigation matters. I don’t.

Also, I was happy to save the renewal fees – $380 for the bundled ABV credential and FVS section membership.
Not a lot of money for sure, but as my father-in-law loves to say: It’s not what you make, it’s what you keep.

So that is this episode’s practice development news. Hopefully, it gives you some food for thought.
What do you think? Did I screw up … make a bad decision?
Let me know by taking just a few seconds to like, comment on, or share this video.

Even better – if you are looking to grow your BVFLS practice faster and smarter so you can get more time, money, and freedom from it – subscribe to my YouTube channel. Thanks for watching!

Cheers!

 

 

 

Action Items:

– If you like what I write/talk about, tell a colleague.

– If something resonates and you want to reach out directly, email me.

– If you think we share common interests, connect with me on LinkedIn.

– If you want a sense of how well your practice is working for you, take this Practice Self Assessment.

2 important sections your engagement letter might be missing

by Leave a Comment

Greetings from Custer State Park … one of our favorite places to visit in the RV. It is also Sturgis week, when the population of South Dakota doubles with the influx of (mostly Harley Davidson) motorcycle riders.

Creating content is an incredible marketing tool to build Authority for practitioners of all stripes and firms of all sizes – if it’s done the right way. I hope you found our last conversation outlining tips to spruce up your content to be useful.

On to this week. I have written and reviewed a few engagement letters in my years of practice. I have found that there is one section that would be beneficial in many engagement letters and another section that belongs in all engagement letters. Both are easy to add.

And if you’re new here, welcome aboard. This is what we do!

If you started your practice today, knowing what you know today …
What is the #1 thing you would do to get better results?
Why not start that now?

Like many things I write about, I imagine what would be best for the client, not what might be easiest for me. (Though I will confess in my early years of practice, I did focus more on the latter … shame on me.)

So in looking at your ways of doing things, always put yourself in the client’s shoes. And when that comes to engagement letters, what two things might they be most concerned about?

#1 – Are you doing the right thing?

Many times, information about a project comes to us over a hurried phone conversation with an attorney. And in particularly complex valuations, what we think we’re being engaged to do might not be what the client meant for us to do. Ever have that happen to you? (Yeah, me neither.)

This can be remedied by adding a section in the engagement letter that I call “My Understanding of the Engagement” (or “My Understanding of the Transaction”).

It’s not necessary for all engagement letters. Sometimes saying we are “estimating the fair market value of a 1/3 member interest in XYZ Industries, LLC as of July 1, 2019, the date of death of the decedent, on a minority, marketable basis for federal estate tax compliance purposes” is sufficient.

Sometimes it’s not. Here is an example from an engagement letter that I wrote for a valuation project last year.

IV. My Understanding of the Engagement/Valuation Dates

1. On March 1, 2017, three sub-trusts were created by John Doe, Trustee of the John Doe Trust (now, the Irrevocable Trust for the Benefit of the John Doe Family).
     a. On March 1, 2017, the assets of this trust consisted of one real estate limited liability company holding two commercial properties: ABC, LLC.
     b. On January 1, 2018, the assets of this trust consisted of one additional real estate limited liability company holding one commercial property: DEF, LLC.
2. On July 1, 2017, three sub-trusts were created by Jan Doe, Trustee of the Jane Doe Living Trust (now, the Jane Doe Irrevocable Trust).
     a. On July 1, 2017, the assets of this trust consisted of five real estate limited liability companies, each holding one commercial property: GHI, LLC; JKL, LLC; MNO, LLC; PQR, LLC; and STU, LLC.
3. As of the noted dates (the valuation dates), the beneficiary of each sub-trust is entitled to:
     a. During the lifetime of Jane Doe, a 30% profits interest.
     b. Upon the death of Jane Doe, a one-third interest in each of the seven real estate limited liability companies.
4. The sub-trusts were created for the benefit of the three children of John and Jane Doe: Tom Doe, Dick Doe, and Harry Doe.
5. Subsequent amendments to the John Doe Trust and the Jane Doe Living Trust made each trust an irrevocable trust and resulted in taxable gifts to the children.
6. Under current tax law, creation of the sub-trusts will permit valuation discounts for lack of control and lack of marketability to be applied to the Subject Interests.
7. My responsibility is to prepare a business valuation of a 1/3 member interest in:
     a. ABC, LLC as of March 1, 2017;
     b. GHI, LLC; JKL, LLC; MNO, LLC; PQR, LLC; and STU, LLC as of July 1, 2017;
     c. DEF, LLC as of January 1, 2018.
8. My valuations will be used only for federal gift tax compliance purposes.

Pretty intricate, right? No way I was going to get started on this project without a confirmation of the details by the client and the attorney.

#2 – Will you keep me updated?

When clients plunk down large retainers, I am pretty sure they expect to be updated on a regular basis. I know I would if I were the client. Yet many clients go for long periods of time without hearing from us. And it’s why I wrote Why you should call your BVFLS clients every Friday … or some other day that makes sense for you.

Here is the excerpt of my engagement letter for this action.

IX. Ongoing Client Communication

From the time of my engagement through the delivery of the draft report, I will make every effort to telephone or email [client] each Friday and advise you of the progress made since the previous contact and of the work expected to be performed in the coming week.

Pretty simple, right? This is really a common courtesy that belongs in every engagement letter. And it will force you to regularly communicate with clients, which can keep projects from going off the rails.

So what

These two sections are “do unto others” things. Further, they take little effort on our part to add to an engagement letter template and they can ease two client concerns about the work we are doing for them.

In real life

Think about two competing proposals for an engagement. One has these two sections and the other does not. If you were the client, and all other things were equal, which proposal would you accept?

Cheers!

 

 

 

Action Items:

– If you like what I write about, tell a colleague.

– If something resonates and you want to reach out directly, email me.

– If you think we share common interests, connect with me on LinkedIn.

– If you want a sense of how well your practice is working for you, take this Practice Self Assessment.

Because you already know how to take people out to lunch

by Leave a Comment

I hope last week’s conversation about the either or-ness of face-to-face meetings and creating content spurs you on to do (more) content. Given how conservative we are as a profession, you would think we should not have all of our eggs in one marketing basket.

On to this week. As a continuation of last week’s newsletter, and since you already know how to take people out to lunch, I thought I would pass on some tips I’ve learned that can make your content creating efforts more efficient, effective, and engaging.

And if you are new here, welcome aboard. This is what we do!

Ron Baker, value pricing evangelist: If you stop selling your time, clients will stop trying to manage it.

Think about it. If we sell the outcome, clients won’t care how many hours it takes to reach the outcome. We need to give more clients certainty when/where we can.

A common complaint I hear from BVFLS practitioners I work with is that they’ve tried creating content, but it isn’t yielding results. No one is reading their blog or newsletter. Or they have some readership, but the readers don’t leave blog comment or send reply emails. And most importantly they aren’t getting any leads/projects from their efforts.

Here are six ideas about why or where you may be going off the rails.

#1 – You are not writing often enough

When a potential client visits your blog and sees you haven’t posted for months, they may wonder if you’re still around. If they get a newsletter from you once a quarter, they may forget why they subscribed to it in the first place. Write at least once a month. Bi-weekly is better. Weekly works if you have something valuable to share with your audience that often and if you can manage that pace.

Best practice: Always have a few blog posts or newsletters “in the can” so that when you get slammed (and you know you will), there is some already-written content to send out.

#2 – You are only using text as a medium

Some people are readers of writing; others are watchers of video. Mixing it up with a combo of writing and video is a great way to get people wondering what they will get from you “this time.”

Best practice: Don’t overthink the video. Y’all might have heard Chris Mercer say in his INSIDER interview that he uses an iPhone, a tripod, and a microphone and then uploads the recording to Vimeo.

#3 – You’re hitting the wrong audience

Your blog or newsletter content should be targeted to the people who can send you the kind of BVFLS work you want to do. M&A attorneys don’t want to read about gift/estate tax valuations. Automobile dealerships don’t want to read about marketing agency issues.

Best practice: Know exactly who your ideal client (or referral source) is. Then write or speak to that person … answer their questions … solve their problems.

#4 – Your content is too general

You know a ton about your practice area or industry niche. But what you write about should dovetail with why prospects and referral sources hire you. Choose topics that will appeal to your audience by identifying the most common reasons you get hired. Then write about that.

Best practice: Pick a handful of themes that your content will cover and make sure everything you produce falls into one of those themes. For example, all of my content fits into my “4 pillars of practice development” framework – positioning, messaging, marketing, and business model.

#5 – Your writing ain’t that great

The quality of your writing will have a significant impact on the reach of your writing. Readers are turned off not only by unorganized thoughts and unmade points, but also by egregious grammar, sloppy syntax, and improper punctuation.

Best practice: Take a writing class or work with a writing coach to improve your style. Use an online tool like Grammarly or the Chicago Manual of Style to improve your form.

#6 – You aren’t promoting the content you’re creating

Your blog or newsletter gets read by the people who know about it. What about the people who don’t? Provide snippets of your content and relevant links on all of your social media channels – multiple times – to attract and pique the curiosity of your would- and should-be audience.

Best practice: Create a promotion checklist or calendarize dates and times for getting the word out; this task can be easily delegated.

So what / In real life

Creating content is an incredible marketing tool to build Authority for practitioners of all stripes and firms of all sizes – if it’s done the right way. Follow the best practices above, and you’ll be sure to see a difference in the results of your current efforts.

Related posts

Newsletter or Blog: Which is better for you?

Cheers!

 

 

 

Action Items:

– If you like what I write about, tell a colleague.

– If something resonates and you want to reach out directly, email me.

– If you think we share common interests, connect with me on LinkedIn.

– If you want a sense of how well your practice is working for you, take this Practice Self Assessment.

Having lunch or creating content? Chris Mercer says …

by Leave a Comment

I hope last week’s conversation about lead magnets gave you some ideas and examples about why and how to construct an “ethical bribe” so that you can grow your email list. The only thing you need to do now is to create SAGE content that would be of interest to your audience in lead magnet form.

On to this week. Few things in life or business are ever either/or. That extends to how we market and get our names “out there” to be recognized. And one takeaway from my INSIDER interview with Chris Mercer is his belief that it is not one thing … it’s several things … done consistently and persistently.

And if you are new here, welcome aboard. This is what we do!

Jerry Seinfeld talking to Eddie Murphy in Comedians in Cars Getting Coffee – Episode 1/Season 6: Lack of focus is why we have lack of greatness.

What could we be great at in our respective BVFLS worlds if we were mono-maniacally focused on it?

One objection I often hear from practitioners when I recommend they create content is that it (writing/video) is less effective than face-to-face meetings. They want to spend their time taking prospects and referral sources to lunch or other event rather than spending that time knocking out an article or recording a video.

So here are a few thoughts to keep in mind if a “meeting-only” mindset is keeping you from producing content, too.

#1 – Times are changing. The lunch (and cocktail and golf outing and ball game) marketing of the past is becoming less common as more people guard their time. Thus, we need to find alternative ways to stay top of mind. Producing content can do that.

#2 – Unlike lunch, content scales (and it doesn’t pack on pounds!). We can’t be everywhere at once, but our thought leadership can be. So why not supplement those face-to-face meetings by creating scalable content that lasts long after lunch is over?

#3 – Are we actually, actively taking prospects and referral sources to lunch or do we merely have the best intentions of doing so … next week? Because if we’re not lunching and we’re not writing, what are we doing with our time?

#4 – People are doing online due diligence before accepting an invitation for a get-together. Having a digital footprint of good content they can find and scan will make a good first impression and make us more meeting-worthy.

So what / In real life

Another takeaway from Chris Mercer’s INSIDER interview was his admission that he is an introvert. I’m one, too. I think many people in our profession are introverts … but there is no real benefit of proclaiming it.

But producing content is one way to work around it and bring in new business.

Cheers!

 

 

 

Action Items:

– If you like what I write about, tell a colleague.

– If something resonates and you want to reach out directly, email me.

– If you think we share common interests, connect with me on LinkedIn.

– If you want a sense of how well your practice is working for you, take this Practice Self Assessment.