ValuAdder Business Valuation Blog

Finding your business value by market comparison

You probably noticed that ValuAdder features a number of market-derived Rules of Thumb. The Rules give you a very effective way to estimate your business fair market value using the well-known Comparative Transaction Method.

In plain words: you determine the business value by comparison with similar businesses that have actually sold. All you need to do is select your business type and provide a few key business financial performance inputs. ValuAdder does a number of calculations to give you the business value range, average and median values.

Locate your business type 3 ways: 1. By Name 2. In Industry Group 3. By Direct Search

With over 350 major industries to choose from you may wonder what it takes to find the right industry for your comparison. ValuAdder engineers thought of this as well – and came up with several handy ways to simplify your work:

  • View Rules listed by Name.
  • View Rules organized by Industry Group.
  • Use the search engine to quickly find the Rule you need.

To see all available business types in alphabetic order, click on the By Name button and scroll to the business type you want.

To look up your business type by Industry Group, click on the By Industry button, then expand the Group view to see all related business types.

For a very quick lookup, use the built-in Search engine: just start typing the business description you are interested in. ValuAdder displays all matching business types immediately.

Now make your selection and specify your key financials such as the business cash flow, revenue, inventory or tangible assets. ValuAdder instantly displays the business value range, average and median values.

You will appreciate the time savings if you need to do a number of market comparisons: when looking for a business to buy or doing a number of what-if valuation scenarios.

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