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5 Reasons Why TagniFi Is Recognized By The Big 4 Audit Firms

By June 20, 2024No Comments


“I’d say at least half, if not considerably more, are reviewed as part of the audit process and many of those are Big 4, or Global 6 firms.”

5 Reasons Why TagniFi Is Recognized By The Big 4 Audit Firms

One question we receive from prospective business valuation clients is about the recognition of TagniFi by the ‘Big 4’ audit firms. Often, these valuation firms are looking to switch from more expensive services but are worried that the Big 4 audit firms (Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers) won’t recognize TagniFi as a replacement for their existing database. Here are 5 reasons why the Big 4 audit firms recognize TagniFi as an alternative to other databases for business valuation data:

Data Quality

TagniFi’s financial statement data is highly accurate due to the technology and quality control processes we’ve built. TagniFi uses tagged financial statement data directly from the Securities and Exchange Commission which allows for a) greater efficiencies (which translates into lower prices), and b) better accuracy since we are not depending on a human analyst to manually input data into a database.

Here is a client quote from a Top 50 CPA firm about their experience comparing TagniFi to the incumbent:

“Was looking at public asset managers using your standard market comp template and Capital IQ. I noticed your MVIC for one company, was about 4x bigger than the Capital IQ value. Researched it (see excerpt from 10K below) and it appears that Capital IQ did not pick up on the Class B., greatly understating the value.”

Data Transparency

Every financial statement item in the TagniFi database can be traced back to the source with a single click. This allows business valuation firms and the Big 4 audit firms to instantly see how the data was calculated and where it originated. For example, if you see a large add-back to EBITDA in your valuation model due to a restructuring charge, simply right-click on the charge to see what it was and where it was disclosed.

Data Consistency

Does your enterprise value include operating lease liabilities that you are not aware of? With TagniFi data, every operating lease liability is mapped to its own line item so it will never be included as part of interest-bearing debt (unless you want it to). On more than one occasion, Big 4 audit firms have compared TagniFi data to other databases only to find material differences in the data presented. When this happens, the error is usually with the incumbent database due to the incorrect classification of line items on the financial statements.

Market Recognition

According to a survey published by BVR in November 2022*, TagniFi was the 2nd most used Excel add-in for valuation reports.

“The most commonly used add-in was from Cap IQ, followed closely by Tagnifi.”

*In 2024, we believe TagniFi has replaced Capital IQ as the #1 Excel add-in in business valuation.

Client Experience

The most important reason that TagniFi is recognized by the Big 4 audit firms is that business valuation firms have been trusting TagniFi in their valuations since 2015. From reviewing 409a valuations to estate and gift tax valuations, the Big 4 firms have reviewed thousands of valuations from TagniFi clients and have seen the results – better quality at a fraction of the price.

We asked the managing partner of a prominent valuation firm about their experience with TagniFi and Big 4 audit firms. Here is the response we received:

“I’d say at least half, if not considerably more, are reviewed as part of the audit process and many of those are Big 4, or Global 6 firms.”

Next Steps

Tired of paying too much for your financial database? Schedule a demo to see why business valuation firms are making the switch to TagniFi.