If you take a look at ValuAdder online presentation, you will notice quite an array of valuation methods available. This is not surprising as most professional business appraisals are done using a number of methods. Why so? Because no one valuation technique is definitive.
Each method looks at business value from a unique perspective. For example, the well known discounted cash flow method calculates your business value from an earnings forecast and discount rate which captures the business risk. Note that this income based method does not directly account for business assets. Nor does it compare your business to sales of similar businesses.
Other popular methods include the market based comparisons to sold companies in your industry sector. Here, you are looking for guidance from the market place as what similar companies are worth. You get the “going rate” based on statistical evidence. However, if your company is unique, the market valuation methods may fail to incorporate that in the value estimate.
Asset rich companies, on the other hand, can be valued using such methods as the capitalized excess earnings. If you are dealing with valuation of a well established company, you may wish to determine the value of goodwill. That’s what the excess earnings technique gives you, in addition to the overall value of the company.
With ValuAdder, you can choose the methods that fit your unique business. If you are doing a number of valuations, you can configure ValuAdder to use the methods you want for each. No boiler plate calculations that are irrelevant to the task at hand. You are always in control of your business valuation work.
For each valuation method you use, ValuAdder automatically prepares a calculation report. Just click on the Report menu when you are done with your analysis. ValuAdder creates the valuation report summarizing your assumptions and displaying the business value results.
If your situation requires a formal, standards compliant, business appraisal report, you can take advantage of the Report Builder tool. The Report Builder saves you time and effort by preparing a fully editable business appraisal report template. The new report opens in your Word or compatible editor, ready for your inputs. Helpful comments throughout point out the areas in the report requiring your editorial input. As a result, you can finish a full-featured, professional appraisal report in a fraction of the time you’d spend starting from scratch.
The report template is also useful as an organizing tool. It shows you instantly what is expected from a business appraisal and how the work should proceed. From financial statements to forecasts of earnings and business risk assessment, to method selection and calculations, all the way to a fully supported conclusion of business value.More on Valuation