Business valuation with ValuAdder
- Start with the company’s financial statements such as the Income Statement and the Balance Sheet.
- Assess the business’ earning power and risk by making adjustments to the financial statements.
- Choose the business valuation methods.
- Calculate the business value.
- Check the validity of the business valuation result.
- Customize each valuation project to meet your needs. Choose the valuation methods in ValuAdder that best match your particular project, simple or complex. Create a quick estimate of business value or a full scope standards compliant business appraisal.
All valuation tools and data in one software package
No need to waste money on expensive database subscriptions! ValuAdder includes all the key valuation data you need:
- Industry-specific valuation multiples by SIC and NAICS codes.
Cost of capital data to calculate your discount and capitalization rates:
- Risk-free rates of return based on the US Treasury yields.
- Equity risk premium based on S&P 500 index returns.
- Industry risk premia across all industry sectors.
- Company size risk premia covering all company sizes.
- Company-specific risk premium (CSRP) assessment based on 10 key performance criteria.
- Regional risk premia to run valuations anywhere in the world!
- DLOM and minority discounts to value partner ownership interests in privately owned companies.
- One-click WACC calculation based on your company's capital structure.
Standard business valuation methods
ValuAdder gives you comprehensive business valuation under the three standard approaches—Asset, Income, and Market—using several different calculations:
- Capitalized Excess Earnings. Use the classical Treasury Method to calculate the value of business goodwill and total business value.
- Discounted Cash Flow. Determine the value of any business based on its earning power and risk.
- Market Comps. Price the business quickly and accurately using comparable business sales by industry. Calculate the business price range, average, and median values.
- Multiple of Discretionary Earnings. Create a comprehensive business appraisal based on business earnings and a set of key financial and operational value drivers.
- Net Present Value. See if a business investment makes sound financial sense.
Deal structuring tools
Use the Deal Check calculation to create business purchase offers, verify the offer terms, and construct effective counter-offers. Maximize your selling price while making sure that business cash flow supports your deal terms.
Use the Future Value calculation to calculate the value of any appreciating asset, such as business-owned real estate. Account for capital improvements during the holding period.
Financial adjustment worksheets
Get the exact business valuation inputs by adjusting the company’s Income Statement and Balance Sheet. Use the worksheets to determine available business cash flow. Easily create accurate financial forecasts for the business valuation. Assess business risk by building up the discount rate. Determine the business’ long-term (terminal) value and capitalization rate. Apply lack of marketability and minority discounts to value partial business ownership interests in partner buyout and other situations.
Support for what-if valuation scenarios
Explore any number of valuation scenarios to test your assumptions. Run several what-if business valuation scenarios side by side. Fine-tune your inputs to refine your results. Save time with ValuAdder Autocalculate™ technology, which performs calculations as you type.
Employee stock option valuation
Determine the value of executive stock options using the powerful Binomial Model. Estimate company stock volatility based on historic returns. Comply with key financial reporting standards including Financial Accounting Standards Board (FASB) Statement 123 R.
Learning and Information Center
ValuAdder includes a complete electronic and printable copy of the Business Valuation Handbook.
Access essential information on business valuation concepts, tools, and techniques in the Business Valuation Guide. Gain insight into the business valuation approaches, and methods with extensive Tutorials. Consult the Glossary for key business valuation terms and definitions. Find quick business valuation tips and answers using the powerful search engine. Refer to the concise How‑To sections as you do your business valuation.
Business Valuation Handbook
200 pages of must-have information from the Learning and Information Center in book format. Enjoy the convenience of a hands-on business valuation reference. Easily exported from ValuAdder as a print-ready PDF document.
Reports to communicate effectively
Communicate easily with clients, professionals, and parties to a business sale transaction. Create a report directly from any business valuation or deal structuring calculation. Send your report to a printer. Email your results as an Adobe® PDF document. Import your valuation conclusions into a spreadsheet such as Microsoft® Excel®.
Tab interface for quick calculations
Choose any business valuation method with a click of the mouse. Switch between the calculation Tabs quickly to cross-check your results.
Data input & export that saves time
Easily input key business valuation factors and financials. Save your business valuation on your computer or network, then re-open your valuation work in ValuAdder on any other computer to continue where you left off. Email your business valuation conclusions in time for review or negotiation.
No recurring subscription fees — no strings attached
Pay once and create an unlimited number of business valuations. Steer clear of overpriced subscription services that keep charging you over and over. No recurring fees or use restrictions. Easy-to-use setup program installs ValuAdder on your computer. Use ValuAdder with or without an Internet connection.
Valuation in the Cloud
Use your Cloud storage and Web aware ValuAdder tools to run your valuation projects anywhere, any time.
Protect your and your clients’ data
ValuAdder keeps your sensitive business data under lock and key by performing your valuations on your own computers and network. Avoid handing out mission critical business or client data to Web-based business valuation services — who resell it right behind your back.
ValuAdder is secured by an Extended Validation (EV) digital certificate, which your Mac® or Windows® PC verifies (using Gatekeeper or SmartScreen® technology, respectively) when you download it. This ensures that your copy of ValuAdder is as intact and malware-free as the original copy housed on our secure servers.