Another ValuAdder milestone completed – we have just released ValuAdder V3.5.7.

In addition to a number of performance enhancements, we have focused on the key step in your business valuation: financial statement reconstruction.

In valuing a business, the historic financial statements are a starting point. To get an accurate business valuation, you need to adjust your company financials, the process business appraisers call financial statement reconstruction.

To help you get through this important step, ValuAdder provides 3 worksheets, each used for the various business valuation methods:

• Multiple of discretionary earnings
• Business valuation rules of thumb
• Discounted cash flow
• Capitalized excess earnings

The worksheets enable you to start with your company’s Income Statements and Balance Sheet, then consider and make the appropriate adjustments that represent the business earning power.

The worksheets are organized in a sequence of numbered pages, giving you the step-by-step instructions, pointing to the areas requiring your input, and automatically generating the values you can use to calculate your business valuation results with ValuAdder.

Our latest ValuAdder 3.5.5 business valuation software release now offers you an indispensable resource on all aspects of business valuation and structuring a successful business sale or purchase. A 190-page Business Valuation Handbook combines the key information on how to value a small business and construct a business acquisition that makes sound financial sense.

You can access the Handbook directly in your ValuAdder Help menu. View the document in a PDF reader or print portions of the book to use as a handy reference.

If you prefer a printed-and-bound book on your desktop, we have published the Handbook as a separate product, available here: Printed Business Valuation Handbook.

Our customers asked and we have responded – ValuAdder 3.5 business valuation software now lets you calculate the value of business goodwill directly. Featuring the time-honored Capitalized Excess Earnings business valuation method, ValuAdder Business Goodwill Tab does this important calculation for you.

You will find this very handy in a number of common business valuation situations:

1. When allocating the business purchase price among the business tangible assets and goodwill. This has important tax implications when buying or selling a business.
2. To clearly demonstrate the value of business over and above its tangible asset base.
3. As a reliable cross-check of business value results you obtained from the other business valuation methods.

While knowing the value of business goodwill is important for all business owners, it is especially so for owners of professional practices, consulting businesses and technology-based companies.

Frequently, the value of business goodwill and other intangible assets far exceeds the value of the tangible assets for these firms. Since goodwill may represent a large part of the total business value, its accurate measurement is essential.

ValuAdder comes complete with the Business Goodwill Tab to calculate your business goodwill, worksheets to develop all the inputs you need, and a Tutorial which explains how this business valuation method works. You will find some useful insights there, including how to handle the situations with negative goodwill!

Another major milestone for ValuAdder business valuation tools!

We have updated ValuAdder to run on the latest Windows Vista and Max OS X Tiger computer systems. If you enjoy the Windows Aero or Mac OS X 10.4 visual effects, you will appreciate the slick look and feel of ValuAdder 3.5. And you can use your computer system display preferences to easily customize how ValuAdder looks on your computer.

Of course, ValuAdder runs on many other versions of Windows and Mac OS, including Windows XP and Mac OS X 10.3 Panther. And because ValuAdder 3.5 is built on the industry-leading Java platform, you can install the product on the computer system of your choice!

We have also added some new features to make ValuAdder even more powerful and easy to use:

• Rules of Thumb for 351 industries to estimate your business fair market value.
• Enhanced deal structuring tools to put together a solid business acquisition deal.
• Easy customization of ValuAdder to your specific valuation needs.
• Greatly expanded Learning and Information Center.