interVal Revisited with Trevor Greenway | E290

Bringing business valuations to the advisory world.

In this episode of Fintech Impact, host Jason welcomes back repeat guest Trevor Greenway, the founder of interVal. Trevor discusses how interVal's software platform assists financial advisors, accountants, and other professionals in valuing businesses. The platform provides estimates of business value, guides clients in the right direction, and helps them optimize their largest asset.

Episode Highlights 

  • 01:02: Trevor talks about interVal's core mission of democratizing business valuation access and its positive effects on both businesses and their advisory relationships. This approach empowers business owners and advisors alike to make informed decisions, enhance business value, and manage risks effectively.

  • 01:36: Trevor provides an overview of interVal's journey over the past few years, highlighting the company's growth, geographic expansion, and the positive response to its services in both Canada and the United States.

  • 02:19: Trevor highlights the complex business environment, the challenges faced by advisors, and how interVal's solutions fit into this context to provide valuable insights and maximize business outcomes for owners. 

  • 02:36: Jason inquires about the process of business valuation for financial advisors and others who want to help clients determine their business's worth.

  • 03:57: The conversation highlights the crucial aspects of raising awareness among business owners, enabling advisors to add value, and ultimately working together to create a well-planned and cohesive future. interVal's automated discovery process plays a pivotal role in achieving these goals.

  • 04:19: Jason emphasizes that conveying the value of something is one aspect, but explaining the reasons behind its value and providing strategies for improvement is even more significant.

  • 06:02: The discussion delves into the nuances of enterprise value growth and highlights the importance of understanding and optimizing value drivers beyond simple top-line revenue increases.

  • 06:53: Trevor explains that working capital plays a significant role in driving growth. Efficient management of accounts receivable (AR) days and industry benchmark comparisons contribute to greater efficiency.

  • 08:00: Jason suggests that businesses may be holding onto excessive amounts of cash, beyond what's truly necessary for security. By optimizing cash reserves and using excess funds more effectively, businesses can invest in growth and generate additional value.

  • 08:54: The conversation underscores the importance of educating business owners about leaving appropriate working capital in the business and delves into other key financial metrics that contribute to overall business health and growth.

  • 09:52: The discussion highlights interVal interVal's commitment to being a comprehensive partner in a business owner's journey, helping them set and achieve future goals, track progress, and make informed decisions based on their financial indicators and potential.

  • 10:37: interVal goes beyond traditional valuation and focuses on educating business owners about the components of business health. The platform helps business owners understand how their business's value is constructed and the significance of various factors, including non-operating assets and goodwill.

  • 12:20: The discussion underscores interVal interVal's focus on delivering tailored insights to various audiences, integrating seamlessly into existing workflows, and ultimately empowering business owners to make better decisions based on data-driven information.

  • 13:11: The platform collaborates closely with partners to determine the most valuable insights and data points for analysis. While interVal has the capability to pull data daily through integrations with cloud providers, the frequency is often determined by partners' preferences and needs.

  • 14:15: Trevor highlighted the importance of focusing on optimizing business health and informed decision-making for business owners.

  • 16:29: The discussion touched on various aspects of business valuation and the role of interVal in the process. The conversation highlighted that while there's anecdotal information about client exits and the relation of exit value to proposed value, interVal doesn't directly track such data as it doesn't own the customer relationship.

  • 19:53: interVal is exploring the integration of AI technology to enhance the functionality of their models and provide even more accurate and automated valuations.

  • 20:49: interVal is actively navigating the dynamic landscape of technological adoption and increasing business owner expectations.

  • 22:31: interVal recently expanded into the US market, focusing primarily on the financial and accounting verticals. The expansion began a few months ago, and the company is strategically entering the US market while emphasizing the financial and accounting sectors.

  • 24:52: In terms of company challenges, Trevor mentioned that being dependent on market factors has been a significant challenge. While the company has scaled responsibly without relying on venture capital funding, Trevor noted that external market trends and perceptions about the tech industry can sometimes impact how the company is perceived.

  • 28:02: Trevor mentioned that what excites them the most about their work at interVal is how they are helping to reframe the relationship between advisors and business owners.

 

3 Key Points

  1. Jason and Trevor's conversation highlights the power of understanding "why" and "how" in addition to the value of data-driven insights. It also underscores the critical role advisors play in leveraging these insights to guide business owners toward growth and improvement.

  2. The discussion emphasizes interVal's flexibility in valuation frequency and data integration, highlighting the platform's ability to accommodate partners' preferences while delivering valuable insights for making informed decisions.

  3. Trevor highlighted the complexity of business valuations and how various factors can influence the perceived value of a business.

Tweetable Quotes

  • "While valuation is a methodology, the true focus is on enhancing visibility into the business's health and performance." - Trevor Greenway

  • "Understanding the value drivers behind the valuation is more crucial than the valuation itself." - Trevor Greenway

  • "The frequency of valuation updates doesn't necessarily lead to dramatic changes in valuation results." - Trevor Greenway

  • "The importance of making data-driven decisions rather than emotional ones when considering an exit from a business was emphasized, with the goal of achieving personal and financial objectives." - Trevor Greenway

  • "By automating certain aspects of discovery, advisors can focus on delivering true value to business owners, helping them hit milestones, achieve goals, and mitigate risks." - Trevor Greenway

Resources Mentioned:

Fintech ImpactJason PereiraFintech