MEASURE - What is Your Business Worth
You've worked hard to build a successful business.
It's likely your most valuable asset.
You know the value of your home...
You know the value of your investments...
Doesn't it makes sense to measure
and track the value of your Business?
3 Ways we can value
your business
- All Confidential -
Free Online Valuation Range
Provides a range of market value using your company's key performance indicators -
Includes 30 Minute Detailed Valuation Review with an Advisor
When Needed:
- Estimating Business Value
- Management Decisions
- Increasing Value
- Personal Financial Planning Estimates
- Buy/Sell Protection Planning
- Exit Strategy Planning
- Insurance Planning
- Limited Business Value Appraisal
- Asking Price Justification
Best for private or personal use when an estimate or range of value provides sufficent information for non technical needs.
Start your free Value Drivers SVR Valuation
- 20 Minute Online Tool
Start Your
PinPoint Market Valuation
$1,250 - $3,500
A PinPoint Market Valuation provides you with a most probable selling price for your business and a range of potential value.
When Needed:
- Business Sale Preparation
- Mergers & Acquisitions
- Purchase/Sell Price Justification
- Buy-ins / Capital Infusions, Equity Participation Valuation
- Independent Appraisal Verification
- Divorce Likely to Be Settled Out of Court
- Shareholder Transactions
- Family Business Ownership Transfers
Best for private transactions to third parties and marketed discrete or openly to the public and use between unfamiliar parties.
Certified Business Valuation
$2,500 - $7,500
Credentialed valuation completed by an accredited professional tailored to your specific need.
When Needed:
- Tax Planning
- Gift and Estate Planning / Transfer
- ESOP - Employee Stock Ownership Plans
- Legal Agreements
- Divorce
- Litigation of any kind
- Partner Buy-Out
- Raise Capital
- Venture Capital Transaction
- Private Equity Transaction
- Partnership Litigation
- Determination of Economic Loss
- Wrongful Death/Injury/Insurance
Best used for legal purposes sufficient for use in court, litigation, or complex legal events or for IRS valuation needs.
Integrity
Discretion
Results
Our Approach to Business Valuation
The Value Drivers dot Biz Valuation engine powered by BizEquity.
The valuation process begins by gathering as many as 150 data points throughout the 7-Step online framework. Users input up to three years of historical and/or projected financial data related to revenues, expenses, profits, assets and liabilities. The format we use is designed to facilitate the application of valuation methodologies from the three major valuation approaches - Income, Market, and Asset - and to provide the information needed to produce four estimates of value, formatted financial statements (income statement and balance sheet) and a series of 19 different key performance indicators. Overall, BizEquity has gathered financial and operational data for more than 33 million private businesses and several hundreds of thousands of market-based “deal multiples” from throughout the world. In addition, our system has garnered more than 1.2 million pieces of data in the form of algorithm hits, making us the largest real-time database of primary and curated comparables.
PROPRIETARY ALGORITHM : A HYBRID MODEL
The BizEquity algorithm incorporates the all-important financial metric, seller’s discretionary earnings, as well as a forward looking variant of net cash flows to invested capital and discounted cash flow analysis. This dual method is necessary in order to properly value both the typical owner-operated business on Main Street and the less common high tech or high growth enterprise. The algorithm also distinguishes between smaller, single owner-dependent businesses and larger, middle-market businesses with layers of management, i.e. a distinction is made between a return on owner’s labor perspective and a return on investment perspective. In the former case, owner compensation is a “financial benefit” available to the hypothetical buyer whereas management compensation in the latter case is a “financial cost” to the hypothetical buyer.
A precise and generally accepted measure of income, seller’s discretionary earnings or SDE is commonly used by both business appraisers and business brokers for estimating business value. Also referred to as adjusted cash flow or simply discretionary earnings, SDE is calculated as the sum of pretax income and a series of add backs such as owner’s salary and payroll taxes, owner’s perks, depreciation and amortization expense, interest expense and any one-time, non-recurring expenses.
Not only is SDE used directly within the income approach by way of a risk-adjusted multiple or capitalization rate, it is also used indirectly in both rules of thumb and with market comparable sales data. The BizEquity system encompasses all of these uses with an emphasis on market-based multiples which are adjusted to reflect size, profitability and growth (among other factors captured through the use of online sliders related to customer concentration, importance of owner, etc.).
As a necessary compliment to the use of revenue and SDE multiples within the income and market approaches, our system also identifies and treats uniquely various high tech and high growth industries. In addition, companies which are generating or are expected to generate high profit margins and high rates of growth are also treated uniquely via our discounted cash flow modeling.
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