ValuPro is a Business Valuation and Profiling program designed to calculate a defensible fair market value/selling price of a business, and then (for those offering the business-for-sale) to combine the program’s analysis of financial data together with non-financial information of the business, into a series of offering memorandum called Confidential Business Profiles.
ValuPro Business Valuation is largely a ‘sustainable cash flow’ valuation, which means a valuation calculated within the constraints of a sustainable cash flow estimates. The method includes balance sheet value, with distinctions to work capital components, capital asset components, debt components, etc. The method also includes revenues and earnings/ebitda after recasting interest, taxes, depreciation, amortization, and after normalizing other (if any) non-recurring, extraordinary, discretionary and non-business related income, costs and expenses.
The valuation components include a series of program screen entry forms, into which the user will simply enter information taken from the company’s financial statements and elsewhere. The program is designed with step-by-step instruction to walk you through the steps required to enter the data required to calculate balance sheet value, calculate goodwill value and to test and modify that valuation within the cash flow constraints.
Confidential Business Profiles are designed to present a ‘balance sheet, earnings, cash flow analysis’ of the business, to defend value and price and, along with other narratives and descriptions, to present information a serious and reasonable buyer will require to begin to assess value, fit and opportunity, but to do so without identifying the business until the legitimate intent and capabilities of the buyer can be confirmed and until it is otherwise timely to do so.
Thus, for those valuing the business in order to price the business for-sale, there are additional screen forms designed for the entry of other pertinent information required to complete the business profile features of the program.
For those who may be intimidated by the thought of all this, don’t be. If this sounds difficult, it really is not. It is a matter of following the dotted line laid out within the program itself, and if you review the content of links below, perhaps that apprehension will be alleviated.
- ValuPro valuation processes are described and illustrated; click modules.
- Confidential Business Profiles are described and illustrated; click profiles.
- Valupro demonstrators are available on line, all free of course; click demo downloads.
- Valupro subscriptions are available at various levels on line; click subscription downloads.
- For those who may decide that hands-on valuation process may not be their best use of time and effort, ValuPro offers business valuation services; click valuation services.
The above and much information about the business buy/sell process are setout and described within this website, but, if you don’t find the answers you’re looking for, please contact us.
Functionally, ValuPro is designed to value a viable, profitable going business concern by capturing and analyzing the information required to quantify value in a reasoned and justifiable manner, to assist in the assessment of the company’s ability to continue at a quantified sustainable level and to generate sufficient cash flow to pay for itself with reasonable return over a reasonable period, to present the analysis in clear and concise manner and ultimately to help achieve the threshold necessary to reach agreement and close the deal.
ValuPro is NOT designed to value a business without profits/earnings, such as a start-up business, unless earnings can be credibly forecast; which is often a tall order, but there are times, such as a franchise store perhaps. When an established business has no earnings, nor any realistically in sight, it is apt to render no goodwill value, unless earnings, that are not a current reality, are for some reason credibly projectable. Otherwise, valuing any business without earnings might be as simple as valuing the assets included net of liabilities (if any), and adding that value to ‘whatever’ the buyer and seller might agree to with respect to goodwill. In some cases; some startups, inventions, good ideas, buy-a-job, etc., the ‘whatever goodwill value’ is often just that which is seen by the beholder.
Business Valuation: The Valuation method combines Balance Sheet Value, which is simply the net of assets and liabilities included, with Goodwill Value based on the recast and normalized earnings of the business before interest, taxes, depreciation and amortization relative to the anticipated Cash Flow after interest and after tax to repay the investment over a reasonable return period. The most complete description of the valuation process is available through demonstration but descriptions of each valuation module; 10-QWKvalu, 20-BALvalu, 30-INCvalu and 40-VALUcalc are summarized below.
Business Profile: When the purpose for the valuation is to price the business for sale, ValuPro is designed to generate a series of Confidential Business Profiles. The first; 6-eReport is a report to seller, describing and analyzing what the valuation process has determined. The reports to buyers include 7-eIntro, 8-eFinanc and 9-eProfile, which are progressive in detail and degrees of disclosure. They are staged for release as the buyer’s interest and capabilities are also disclosed. Many potential ‘buyers’ may be interested in ‘looking and learning.’ Fewer will be seriously interested in buying at fair market. Fewer yet will be qualified and capable, but those are the few that a business owner/seller should be looking for, and disclosure to any but those few should be held to a minimum. Such is the purpose of Confidential Business Profiles. Again, although these are further described below, the best description may be by demonstration.