Emotion and Technology: Valuation in a Changing World
INTERVIEW WITH JOY VAN DER VEER AND ASTRID BAETSEN
What happens when experience and ambition come together? In this interview series, professors and alumni from TIAS School for Business and Society meet to discuss developments in their field and the impact on today’s world. From the latest technological breakthroughs to the human side of leadership, each edition highlights how knowledge and practice complement and enhance one another.
In this edition, we dive into the world of business valuation with Joy van der Veer and Astrid Baetsen: the process of valuing businesses, whether for sale, transfer, or succession. It’s a niche within corporate finance where emotion and technology challenge and enrich one another. How do professionals navigate an era dominated by AI and ESG goals?
About Joy van der Veer
Joy van der Veer MSc MIF MBV RV is Adjunct Professor at TIAS School for Business and Society, specializing in Corporate Finance and business valuation. Learn more about Joy van der Veer.
About Astrid Baetsen
Astrid Baetsen MBV RV has been a Senior Analyst in Corporate Finance at Aeternus since September 2024. Previously, she worked as a Corporate Finance Advisor at ABAB Accountants and Advisors. In 2022, she completed the Executive Master of Business Valuation at TIAS. Learn more about her experience.
Professional subjectivism
Business valuation might sound like a field dominated by number crunching. Joy and Astrid immediately laugh at this assumption. “Far from it,” Joy clarifies. “Calculations account for only about 10% of the work. Valuing a business is a combination of technique and intuition. By technique, I mean understanding which methods and approaches to apply and doing so consistently. This helps you uncover the hard numbers. But intuition and experience are almost equally important. I always call this combination ‘professional subjectivism.’”
Finding the root of the problem
Astrid recognizes this from both her studies and her work. “Using the right technology can result in a solid valuation, but sometimes the outcome doesn’t match your expectations or feels off, even though it’s technically correct. That’s when you have to dig deeper. You need to be able to justify and defend your valuation. Without intuition, you might arrive at an indefensible result.”
“Then what do you do?” Joy asks. “From you, I’ve learned to always look for the root of the issue,” Astrid replies. “If something feels off, I investigate further: why is that? I discuss it with colleagues and compare the result to an internal benchmark. While a benchmark is just an average, it does provide guidance.”
The value of a house
Valuation is never a purely objective activity, both emphasize. Joy explains: “Of course, there are the hard numbers, the valuation. But value also depends on what someone is willing to pay. I often compare it to buying a house. A house has an appraisal value. But what you’re willing to pay also depends on factors like how badly you want to live in a particular neighborhood, how long you’ve been searching, or how urgently you need to move. There’s a subjective element to value, distinct from the price you ultimately pay. The same applies to businesses: value and price are related but not identical.”
The impact of data
The rise of new technologies and the increasing availability of data are reshaping Joy and Astrid’s field. However, the abundance of data can also lead to over-reliance on it. “Valuation is not a one-size-fits-all formula,” Astrid says. “Every company and context is unique. Is it a sale to a third party, a family transfer, or a conflict scenario? These are just some factors that influence the outcome.” Many of these factors cannot be captured by data or models alone, requiring intuition and experience.
Astrid also observes a shift in how ICT companies are valued. “Take a company that heavily invests in AI to boost labor productivity. This increases its profit margins, which must be factored into forecasts. The adoption of technology within an organization significantly impacts its valuation.”
ESG Obligations and Valuation
Other trends, such as ESG obligations (Environmental, Social, Governance), also influence business valuation. “ESG has two dimensions. One pertains to the broader picture: how do financial markets respond to ESG? The other is very specific: what impact does ESG have on the asset being valued?” Astrid already sees this in practice. “Consider interest rate discounts for green investments. These provide a competitive advantage over ‘regular’ investments, ultimately improving business performance.”
Business valuation is a discipline where technique, technology, and professional experience converge. When these elements work together, they yield insightful answers to complex questions. Value lies not only in numbers but also in the ability to navigate a constantly changing world with knowledge, intuition, and vision.
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