Why do you need to keep your business valuation software updated? Because there is no such thing as vintage software. Why not? Here are just a few reasons your business valuation software keeps changing all the time.
Market data changes
As market conditions change, so do the parameters you should use in your business valuation. Think discount and capitalization rates and valuation multiples. As new trends emerge in the market, risk perception and expectation of a reasonable return on investment follow suit.
So if you are still building up your discount rate based on the cost of capital data from a year ago, do yourself a favor and take a close look at the current market trends. Business value changes all the time.
Computer operating system changes
These days the major operating system vendors like Microsoft and Apple keep up a steady stream of updates. Reasons are many – computer security, new technologies and features that users expect from their machines.
Microsoft now releases two major upgrades to Windows a year. Apple rolls out a major new MacOS system every year and then keeps updating it pretty much every month.
Your software needs to stay on top of all this innovation and be able to function in the new operating system environment. For example, all Mac software is expected to be notarized by Apple for security purposes.
This means software developers must modify their software design to meet the requirement. No way around it as Apple verifies the safety of your software product independently using the Gatekeeper technology on your Mac. When it comes to security, Apple has your back – your Mac will only run the software if it passes muster. Software apps from yesteryear that don’t make the cut get locked out.
Software technology changes
The relentless progress in the software technology shows no end in sight. Feature sets that were acceptable a short while ago no longer impress. New technology requires that your business valuation software incorporate this constant flood of improvements to provide the features and function you need.
Do not expect software developers to support your aging product. Get the latest version of the software. Then get back on track with your business valuation projects.