HomeProductsTourBlogSupportResource CenterBuy
ProductsValuAdderHandbookReport BuilderUsing ValuAdder

Using ValuAdder for Business Valuation

ValuAdder gives you a set of standard valuation methods and deal structuring tools to value a business in a number of situations:

  • Business sale and purchase
  • Partner buyout and buy-sell agreements
  • Gift, estate and income taxes
  • Legal disputes
  • Equity and lender financing
  • Employee stock ownership plans (ESOPs)
 Business valuation video: State-of-the-art valuation tools. Old-fashioned customer service.

Business value comparisons for 425 industries

Determine the fair market value of a business based on recent sales of similar companies.

What you can do with the Market Comps calculation:

  • Select a business type from 425 industries to see what buyers have paid for similar businesses.
  • Quickly enter key parameters, such as business revenue, cash flow, inventory, and fixed assets.
  • Calculate the fair market value range, average and median for your business.
  • Rebut unreasonable business valuations.
  • See instantly if the business for sale is value or premium priced compared to the competition.
  • Quickly spot overpriced and underpriced acquisition targets.
business valuation pricing formula multiples
Next »

Comprehensive earnings-based valuation

Get a 360° valuation view of any small business with the time-tested Multiple of Discretionary Earnings method, used by appraisal professionals for valuing owner/operator managed businesses.

What you can do with the Earnings Multiple calculation:

  • Get a comprehensive business valuation by scoring the company across the 14 key business value factors.
  • Select the factor values that best describe your unique business opportunity.
  • Determine how the business value is affected by critical value drivers such as business earnings stability, industry growth, competition, reliance on few customers, ease of operation and quality of staff.
  • Use the value factors to identify the key business strengths and opportunities for value-enhancing changes.
  • Increase your business value by making targeted, high impact adjustments.
business valuation using multiple of discretionary earnings method
Next »

Business Goodwill Valuation

ValuAdder gives you the standard Capitalized Excess Earnings method to value business goodwill. Used by the US Treasury Department since the 1920's, this is the proven way to value established companies.

What you can do with the Business Goodwill calculation:

  • Determine the value of business goodwill for purchase price allocation.
  • Defend your value conclusion in legal disputes.
  • Prove that the business is worth more than its tangible assets.
Business goodwill valuation
Next »

Industry-standard Discounted Cash Flow valuation

Leverage the simplicity and precision of this business valuation method to get an accurate business appraisal. Transform raw facts about the business earning power and risk into a razor-sharp opinion of value.

What you can do with the Discounted Cash Flow and Net Present Value calculations:

  • Quickly see what the projected business income stream is worth in today's dollars.
  • Factor in the expected gain from future business sale.
  • Easily build up the discount rate that fits your mix of debt and equity capital, using the WACC procedure available in the ValuAdder financial recasting worksheets.
  • Determine how well the expected business performance will match your investment goals.
  • Compare business acquisition with other income producing investment opportunities, weighing risks and returns.
  • Weigh the business investment as a balance between costs and expected benefits.
business valuation using discounted cash flow method
Next »

Tools to structure a business acquisition

Quickly construct and verify any small business acquisition proposal.

What you can do with the Deal Check calculation:

  • Determine the required cash flow and debt service based on the details of your business purchase scenario.
  • Quickly fine-tune the business purchase price and terms to fit within your cash flow and capital investment requirements.
  • Justify your asking price and terms.
  • Easily factor in key acquisition deal parameters such as the new owner compensation, expected return on downpayment, and capital investments.
  • Automatically account for the standard debt service coverage ratio of 1.25 for any purchase proposal you construct.
  • Compare several business purchase proposals side by side by opening a number of ValuAdder windows at once.
  • Explore the effect of small business purchase financing scenarios on cash flow and project cost.
business valuation software for purchase price justification
Next »

Tools to explore business financing options

Explore small business purchase financing options that make the business acquisition a reality.

What you can do with the Loan Schedule calculation:

  • Quickly assess the cost of debt financing.
  • See how various financing scenarios may affect your cash flow and help you decide how much to buy a business for.
  • Get precise debt service details from detailed amortization tables.
  • See how offering seller financing makes you more money through interest income.
  • Reduce taxable gain from selling a business with installment sale reporting, while making the business purchase very attractive for the buyer.
business purchase financing tools
Get Started Today
Buy Now »