We put a lot of work into our business valuation products – so that you can stay ahead of the latest economic changes. If you need an accurate, defensible business appraisal, the latest release of ValuAdder 4.5 gives you the tools for the job:

  • A set of business valuation methods based on all three approaches: Asset, Income, and Market.
  • A streamlined way to start with your company’s financial statements, recast the historic financials, assess business risk, and calculate your business value. 
  • A powerful way to create the right price and terms for a business sale or purchase.
  • A comprehensive Learning and Info Center and Handbook covering all aspects of valuing small businesses and professional practices.

What is new in ValuAdder 4.5

We have increased the coverage in ValuAdder business valuation Rules of Thumb to 420 industries! To do so, we have analyzed some 20,000 recent private business sales deals – to give you the most accurate market-based valuation multiples available.

For 2009, we have updated the discount and capitalization rate data – critical to accurate business risk assessment. This ensures that your income-based business valuation results match today’s market conditions precisely.

Market-based business valuation – based on latest market data

Determining your business value by direct comparison to similar private business sales is especially important today. ValuAdder gives you the up-to-date estimates of business value including the statistically derived business value range, average and median values – across each of the 420 industries covered.

You can search and view each Rule of Thumb by the business type description, its industry, as well as the SIC and NAICS codes.

Here are the latest industry additions:

  • Fruit, vegetables and preserves manufacturing companies.
  • Wineries and spirits manufacturing firms.
  • Business form production and printing services.
  • Synthetic resins and elastomer products manufacturers.
  • Manufacturers of vitamins, health and nutrition products.
  • Cosmetics, beauty and hair care product manufacturing firms.
  • Paint, finish and coating materials manufacturers.
  • Ambulance services.
  • Television stations.

Of course, we have reviewed all other 410 industries included in the ValuAdder Rules of Thumb for the latest business pricing trends. Business values in these industries show significant changes in 2009 compared to a year ago:

  • Auto parts and accessories manufacturers.
  • Moving and storage companies.
  • Electrical equipment and other industrial parts distributors.
  • Hardware stores.
  • Apparel retail.
  • Furniture stores.
  • Coffee shops.
  • Office building, 5-day deli caffees.
  • Ice cream parlors.
  • Pizza parlors.
  • Family restaurants.
  • Sandwich shops.
  • Cocktail, bar and pub establishments.
  • Specialty retail such as gift stores and greeting card shops.
  • Flower shops.
  • Securities dealers and brokers.
  • Insurance agencies.
  • Real estate brokers.
  • Property management companies.
  • Advertising agencies.
  • Cleaning services including maid and janitorial companies.
  • Packing, shipping and mail box rental businesses.
  • Auto repair shops.
  • Dental practices, including general family and oral surgery clinics.
  • Environmental, engineering and accounting firms.

Business valuation based on income – using the current discount and cap rates

ValuAdder features detailed worksheets that contain the latest information on the discount and capitalization rates. This helps you assess business risk accounting for the broad economic factors as well as the company specific risk. You can use your company’s financial statements to:

  1. Determine the available cash flow.
  2. Assess business risk.
  3. Prepare all the inputs you need for your business appraisal.

Appraise any business – and avoid costly mistakes

The adjustments you make on the worksheets are essential for an accurate business valuation. Applying business valuation methods to incorrect financial inputs is the biggest cause of mistakes.

Owners of small businesses tend to report financials that minimize taxable income. As a result, your business appraisal should focus on cash flow rather than net income. In fact, professional business appraisals use the discretionary cash flow or net cash flow as the basis of determining business value.

ValuAdder worksheets are designed to help you get through this important step quickly and efficiently  –  by making the adjusting addback changes.

Nothing discredits a business appraisal more than using discount and capitalization rates that fail to capture your business risk. ValuAdder helps you assess your company-specific risk using a set of key financial and operational factors.

Business Valuation using ValuAdder

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