If you’re a business valuator, you’ve likely experimented with AI tools like ChatGPT, Google Gemini or Claude. However, much of the guidance available is either overly simplistic or too abstract to integrate effectively into your workflow. This blog cuts through the noise to provide three practical ways for valuators to leverage AI immediately—complete with prompts that deliver tangible results.
It’s important to recognize that utilizing AI doesn’t oblige you to incorporate any of its outputs directly into your reports. Instead, AI can serve as a catalyst for generating ideas, uncovering sources, providing feedback, and exploring concepts or processes you might not have considered otherwise.
Even if you choose not to use any AI-generated content in your reports, the insight gained can significantly enrich your analysis and decision-making. Embracing AI as a tool for exploration, analysis, and feedback can provide substantial value, enhancing the depth and breadth of your valuation work.
Mastering AI prompts is essential for obtaining high-quality outputs from tools like ChatGPT or Claude. Think of interacting with AI as learning a new language: the better you articulate your requests, the more effective and relevant the responses will be. Just as fluency in a foreign language enhances your experience in a new country, proficiency in crafting precise AI prompts unlocks the full potential of these tools. In today’s rapidly evolving landscape, developing prompt engineering skills is becoming increasingly important. By honing your prompt skills, you can transform AI from a basic assistant into a powerful ally in your valuation practice.
- Draft Valuation Narrative Sections in Minutes
Tool: ChatGPT Pro or Claude.ai
Use Case: Automate the first draft of report sections like industry overviews, company summaries, method explanations, and economic outlooks.
Pro-Level Prompt:
“Write a professional, 200-word industry overview for a $5M general dentistry practice valuation in the Southeast U.S. Include macro trends, competitive landscape, and demand drivers. Provide all data sources. Use the tone of a professional and credentialed valuator.”
Why This Prompt Works:
It gives clear instructions on tone, context, length, and target audience—so the output is tailored and ready for editing, not rewriting.
You would need to verify all the specific data because you can’t guarantee that AI will be accurate. But just getting AI to do an industry summary will give you ideas, options, sources, etc. This can be very valuable even if you don’t use any of the output at all in your report.
- Use AI to Review Excel Models Like a Second Set of Eyes
Tool: ChatGPT Pro with Advanced Data Analysis (Code Interpreter)
Use Case: Upload your valuation model and get AI-powered feedback on structure, errors, and how well your assumptions are presented.
Pro-Level Prompt:
“You are a senior business valuation expert reviewing this Excel file as part of a quality control process. Please:
- Identify any broken formulas, hardcoded values in calculation cells, or circular references
- Review the overall structure of the model and suggest ways to improve transparency and auditability
- Review how valuation assumptions (e.g., discount rate, growth, working capital) are presented—are they clearly sourced, separated from calculations, and easy to trace?”
Why This Prompt Works:
- Gives the AI a clear role and purpose
- Focuses on technical and structural issues, not subjective valuation decisions
- Adds value where human reviewers often miss small but critical issues
Example Feedback You’ll Get:
- Errors:
“Cell F27 contains =C27*1.08 where 1.08 is likely a growth rate. Consider referencing a named input instead of hardcoding.”
- Structure:
“Assumptions are embedded within calculation tabs. Recommend isolating all assumptions into a dedicated ‘Inputs’ sheet for clarity and auditability.”
- Presentation:
“The discount rate is labeled but not broken out by components (risk-free rate, ERP, size premium). Consider linking to a cost of capital schedule.”
Perfect for final reviews, onboarding junior analysts, or preparing models for client or court submission.
- Summarize Source Documents Through a Valuation Lens
Tool: Claude.ai or ChatGPT Pro
Use Case: Summarize long court rulings, industry reports, or client interview notes with a focus on valuation-relevant insights.
Pro-Level Prompt:
“You are a valuation expert preparing a report for litigation. Summarize this uploaded court decision, focusing on how the court evaluated valuation methodology, cost of capital, and DLOM. Highlight any reasoning that could impact how we defend our report.”
Why This Prompt Works:
- Frames the AI’s role as an expert, not just a summarizer
- Specifies exactly what to look for (methodology, cost of capital, DLOM)
- Makes the output directly usable in litigation prep or report defense
Final Tip: Treat AI Like a Junior Analyst (But Give Clear Instructions)
To get great results from AI:
- Tell it who it is (e.g., “a valuation expert reviewing a model”)
- Give it a specific task
- Define tone, format, and context
- Don’t ask it to make valuation decisions—but do ask it to flag anything you should review
Summary
In today’s rapidly evolving business valuation landscape, integrating Artificial Intelligence (AI) into your practice is no longer optional—it’s imperative. By developing proficiency in AI prompt engineering, you can transform AI from a simple tool into a powerful collaborator, enhancing your thinking process, analysis and perspective.