Kshitij Patel serves as Vice President at 73 Strings where she is valued as a valuation expert. She spearheads efforts in tech valuation innovation and plays a pivotal role in the company’s strategic growth initiatives. With a career spanning over a decade as a valuation professional, Kshitij has cultivated her expertise in complex valuation methodologies, paired with a sharp focus on digitalization.
Before joining 73 Strings, Kshitij made significant contributions at KPMG and Duff & Phelps (now Kroll), where she honed her skills and developed a deep understanding of the intricacies involved in valuation. In addition to earning the CBV designation and CA certification, Kshitij’s academic background includes a bachelor’s degree in management. This combination of professional experience and academic achievement positions her as a leading figure in the field of valuation, particularly in leveraging technology to enhance traditional valuation practices.
How has the CBV designation supported your career development?
Reflecting on my journey, I hold the CBV designation in high regard. Its reputation precedes itself, and personally, it has been a cornerstone in my professional growth within the valuation field. Since completing my CBV in 2022, I’ve felt a significant enhancement in my value, both to my career and to the broader context of my work. The power of this designation is not just in the title, but in the doors it has opened for me.
I’ve always identified as someone deeply entrenched in the valuation profession, but the CBV designation added a new layer to that identity. It’s like a lens that has sharpened my view, especially in understanding the nuances and complexities of our clients and customers’ challenges. Before CBV, like many in our field, I faced a myriad of obstacles, from intricate valuation analyses to navigating the day-to-day demands of my role.
Post-CBV, my perspective shifted. I started to see problems not just as obstacles but as opportunities to innovate and streamline. It pushed me to think critically about how we, as valuation professionals, can eliminate the repetitive, monotonous tasks we face—be it sifting through vast quantities of data, untangling complicated waterfalls, or making sense of equity allocations.
This journey didn’t just end with a deeper understanding of problems; it set me on a new path toward technology. It’s fascinating how a deeper dive into valuation has opened up a realm where technology and valuation intersect, offering solutions to problems I used to face regularly.
Looking back, I realize how this transition reflects my commitment to advancing valuation practices. It reassures me that I’m on the right path, one where I can better understand and address the challenges faced by our clients and customers. My journey from being a valuation professional to where I am now serves as a testament to the transformative power of CBV designation. It’s been a catalyst not just for my career growth, but for a broader evolution in how I approach and solve problems in the valuation domain.
Can you share a particularly challenging yet interesting valuation analysis that made you realize you had chosen the right career path?
My background was in valuation analysis, focusing on consulting roles. Now, transitioning to an expert in valuation technology, I’ve encountered more challenges, particularly after gaining my CBV experience. A significant hurdle has been managing vast financial data. This complexity amplifies when dealing with hundreds of portfolio companies, each shared data that needs meticulous analysis to ensure accuracy in numbers and projections.
One of our clients faced immense challenges with their cap tables and the sheer volume of data. We stepped in to streamline this overwhelming task, significantly reducing their effort and time required for valuations, which in turn saved costs. They noticed their valuation figures became more accurate and less prone to errors after a few valuation cycles.
The journey hasn’t been without continuous challenges. Working with clients on infrastructure valuations has been particularly demanding. The complexity and cost escalate the deeper you delve into projects like power grids, R&D assets, and transmission lines. Our focus has been on developing systems and products that assist in valuing such intricate assets. We aim to continually introduce new features like customized DCF models, improved cap table management, and automated waterfall analyses.
However, it’s essential to acknowledge that while technology has been a tremendous aid, the core of valuation—judgment—cannot be replaced by tools. These advancements serve as enablers, allowing us to address problems more efficiently and allocate our time to making informed judgment calls, supported by the data and insights these systems provide.
What differences do you see in your current role as compared to your previous roles?
In my earlier role, I dedicated seven years to being at the core of valuation analysis, collaborating with some of the industry’s giants, like KPMG and Duff & Phelps, now known as Kroll. Following this rich experience, I ventured into valuation technology and concurrently pursued my CBV designation.
Since its inception, I’ve been a part of 73 strings, marking over three years with them, which coincides with the period I started my CBV journey. This transition wasn’t just a career move but a once-in-a-lifetime chance to contribute to creating a leading market solution in valuation technology.
The comprehensive understanding, I gained in valuation through my CBV studies has empowered me to view valuation challenges through a technology-focused lens. Currently, my role involves a deep dive into portfolio analytics, significantly aiding portfolio managers to expedite their decision-making processes regarding valuations.
I regularly interact with portfolio managers, who are tasked with evaluating the valuations of hundreds of portfolio companies, sometimes as frequently as twice a month depending on market volatility.
The CBV designation has not only sharpened my understanding of valuation concepts but also significantly enhanced my ability to address and solve client pain points more efficiently in my role in valuation technology.
Do you have any tips for people looking to become a CBV?
Based on my experience, I’ve distilled three essential tips for anyone navigating the valuation profession. First and foremost, networking is vital. We’re part of a very niche industry, and connecting with like-minded professionals can significantly broaden your understanding and expose you to new practices and insights. This is particularly crucial when it comes to staying abreast of new publications or guidelines from regulatory bodies.
Networking not only enhances your knowledge base but also provides a support system for learning and growth. As valuation combines both art and science, the more you engage with others in the field, the more you learn and evolve.
Secondly, staying updated with industry developments is crucial. It’s not just about keeping tabs on the latest theoretical papers or guidelines but also understanding how the market responds to new guidelines.
Lastly, the value of mentorship cannot be overstated. Being a mentor and having a mentor enriches both parties involved. A mentor can guide through various professional challenges and decisions, while as a mentor, you have the opportunity to pass on your knowledge and insights to the next generation. This reciprocal relationship fosters a learning environment that benefits everyone in the valuation community. Embracing mentorship from both perspectives is indeed invaluable.
#FunFact: Having lived in Canada for a couple of years, I’ve honed my skills and transformed into quite the adept handyman, skillfully managing a wide range of household tasks with ease and precision.