If you take a look at ValuAdder software online tour, you will notice that the Market Comps tool covers 425 industry sectors. That means that ValuAdder has comparative business sales data across all these sectors. They cover all major industries including:

  • Business and personal services
  • Retail
  • Wholesale and distribution
  • Food and drink industry
  • Automotive
  • Manufacturing and technology companies
  • Financial sector
  • Professional services
  • And many others

You are not limited to these 425 industry sectors when using ValuAdder to value a business. This is because ValuAdder features a number of well known methods from each of the major valuation approaches:

  • Market – based on comparison with recent business sales
  • Income – based on your company’s earning power
  • Asset – based on the firm’s assets

You can select the method you want to use by just a mouse click in ValuAdder. You can easily customize ValuAdder by choosing the methods for your valuation. Click on the Learn More button as you create a method to see how it works and how you can use it.

The income and asset valuation methods, such as the discounted cash flow or capitalized excess earnings, help you determine your business value by focusing on your company rather than doing comparisons to other firms. Asset and income methods analyze your company directly regardless of your industry sector.

This is good news in situations where comparative business sales are not enough to rely on for your business appraisal. There are industries where business sales do not take place often. Moreover, your business may be unique and hard to compare to other firms in any established sector.

In such cases you can forgo the market approach and use just the income and asset methods available to you. In your business appraisal report you may want to indicate that you do not believe that the market comparison is appropriate in your particular situation.

Remember that the choice of methods is up to you. You do not need to confine your analysis to any one of them. What is important is to select a set of methods that helps you determine you business value as accurately and convincingly as possible.

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *