By: Mae Cornes

Picture this: You’re a small business owner who must know your company’s worth. Traditionally, you’d be in for a long, paper-heavy process with a valuation firm. But what if it could be as easy as filing your taxes online? That was Miranda Kishel’s vision when she founded Development Theory in 2020.

Streamlining Valuation Through Technology

Remember how tax software changed the game for personal finance? Development Theory is doing something similar for business valuation. They’ve created an online portal and app that walks business owners through the valuation process step by step.

“Many valuation companies are paper-based or email-based firms. It’s very inefficient and causes a lot of back and forth. This leads to a lot of extra time and extra expense for the client,” Kishel explains. She has eliminated the headaches of getting a valuation with a smooth, digital experience.

Think about it: no more shuffling through stacks of paper or endless email chains to value your business. Log in, input your data, and let the software do the heavy lifting. It’s valuation for the digital age.

Meeting a Growing Market Need

As of 2024, there are about 33.2 million small businesses in the U.S., according to the Small Business Administration. That’s a lot of potential customers who might need to know what their business is worth.

Development Theory hopes to tap into this whole market eventually. Drawing on over 200 successful engagements as a consultant and lender, Kishel founded the firm with a deep understanding of the inefficiencies in traditional consulting, accounting, and valuation service firms. By leveraging proprietary technology through its portal and app, Development Theory has eliminated those inefficiencies and aims to deliver more accurate and streamlined business valuations to this large audience that traditional firms just can’t scale enough to reach. 

And it does not stop at valuations: Development Theory offers growth consulting and exit planning, too. It’s like a Swiss Army knife for small business financial planning.

Challenges and Opportunities in a Changing Industry

Of course, it’s not all smooth sailing. The business valuation world isn’t exactly known for embracing change with open arms. Big players like BDO and Stout have been around the block a few times and have loyal customer bases.

But here’s the thing: the market is growing. A report from Grand View Research says the global valuation services market could hit $10.5 billion by 2028. That’s a lot of pie to go around, and Development Theory is hoping to grab a slice with its fresh method.

“Our process is way more efficient than other valuation firms. We use a proprietary process that is streamlined and efficient,” Kishel states. It’s like they’re the new sports car in a lot full of reliable but aging sedans.

The Human Element in a Digital Process

Now, one might think, “Wait a minute. Can a computer really understand the nuances of my business?” That’s where the human touch comes in.

Despite all the tech wizardry, Development Theory isn’t trying to replace human proficiency with algorithms. It’s more like they’re using tech to enhance what humans can do.

Take Kishel herself. She has a Master Analyst in Financial Forensics (MAFF) certification, which only about 850 people worldwide have. So when she says, “A business valuation is a great tool for unlocking value so the business owner can grow their company,” she’s not just spouting buzzwords. She’s bringing serious know-how to the table.

Looking Ahead: Scaling and Market Expansion

So what’s next for Development Theory? They’re like a chef who’s perfected their recipe in one restaurant and is now considering franchising. They’ve got their base in the Midwest, but they’re eyeing the rest of the U.S.

They’re also working on building their street cred. Kishel snagged a NACVA 30 Under 30 award in early 2024. It’s the kind of thing that makes people sit up and take notice, especially in a field where gray hair is often equated with expertise.

But here’s the question: Can they keep the secret sauce that makes them unique as they grow bigger? It’s like trying to keep that family restaurant feel while opening locations nationwide.

Implications for the Broader Industry

Here’s something to chew on: What Development Theory is doing could shake things up beyond just their own business. If more small business owners start getting comfortable with digital financial tools, the big, traditional firms might feel pressured to modernize, too.

And there’s more. By making valuation more accessible, firms like Development Theory could help small business owners make smarter decisions. It’s like giving more people a financial GPS for their business journey.

Will Development Theory lead a tech revolution in valuation? Or will they find that sometimes, old school still rules? Only time will tell. But one thing’s for sure: they’re definitely stirring things up in a field that could use a little excitement.

Published by: Khy Talara