We are introducing and offering ValuPro; a valuation and profiling software program, on Business-Trader.com. For details, please see About ValuPro
On November 17, 2007 we purchased Business-Trader.com from its 1999 founders...
More … about ValuPro4/10 – 2-BALvalu, 3-INCvalu, 4-VALUcalc:
ValuPro’s full valuator is quite a different program. It includes three valuation modules; 2-BALvalu, 3-INCvalu and 4-VALUcalc containing more than 30 forms with a few thousand potential entries, questions and selectors, although not all will be applicable to every business. Each form contains an easy set of instructions and we mention the entry volume only to caution that the full valuation exercise will not be competed properly in anything like 15 or 30 minutes.
ValuPro4 is too large to illustrate fully, but we have included several excerpts that should hopefully provide a preview. To access that preview, simply click on the images to follow. But for the clearest view, we invite you to download a ValuPro demonstrator. You’ll be asked to register before activation, but otherwise the download is offered on a complementary basis.
2-BALvalu deals expressly with what the company owns; balance sheet value, which is simply the assets and liabilities of the balance sheet that are to be included-excluded, at book value, at fair market value, working capital vs. capital investment, depreciation, etc. And again, there are full instructions for each step and it’s simply a matter of filling the forms as instructed. Typically, the user will enter the company’s balance sheet from the last 6 years (if available), plus current year-to-date, into a set of on-screen forms that will lead you through the entry process, step-by-step
3-INCvalu pertains to what the company earns; income value, including revenues, cost of sales, operating expenses, income taxes, profits, etc. Again, the entry forms contain step-by-step instructions. Typically, the user will enter the company’s year-end income statements for the last 5 years (if available), plus monthly year-to-date internals. In addition, there are forms in which to enter monthly sales for as many as 10 years in order that any annual cycle might be gauged, and through that cycle (and other considerations), project current year-to-date, to year’s-end.
4-VALUcalc: VALUcalc consists of two sub-modules.
4-VALUcalc-1 deals with the recasting and normalization of income statements and earnings. Recasting calculates normalized ebitda; earnings before interest, taxes, depreciation, amortization. It also recasts earnings to before non-essential or discretionary spending, owner perks and benefits and before owner compensation in excess of a fair market wage for the work-a-day job function of the owner in the business. Normalizing calculates earnings before non-recurring, non-business related, non-essential and unusual income and/or expenditures.
4-VALUcalc-2 deals with what WILL the business be expected to earn for its owner, over and above wages in future years. It asks and weighs the answers to the other hundred questions that were not asked or answered in the first 30 minute (QWKvalu) exercise. Terms, tax rates, interest rates, borrowing, investment return, business premises owned or lease, will they continue to be availability or must the business relocate, what is the potential impact and cost of relocation, replacement of the current owner on-the-job, market tends, conditions, competitiveness, customer security, supply security, transferability of relationships with key employees, suppliers and customers, and the risk factors associated with such, future capital requirements, anticipated cash flow, and more.
4-VALUcalc concludes with the calculation a valuation number based on all the assumptions and considerations. An experienced, knowledgeable business buyer will want know that all necessary costs and expenses have been factored into the equation, that all necessary business assets have been included, that unnecessary or redundant assets have been excluded, and that the company will continue to generate earnings sufficient to pay for itself over a reasonable period.
Those are the basic criterion around which ValuPro’s valuation foundationis designed. For some ValuPro users, valuation may be all that is needed. But for others, when the purpose is to value and price the business-for-sale, ValuPro can also produce a series of confidential, non-identifying reports, designed to justify the price and present the business-for-sale to the owner/seller andto prospective buyers.
5-RPTgen is the report generation module that functions between the valuation modules and the report modules. Its purpose is simply to translate into report format, entries made and analysis calculated by the valuation modules, and to configure the content of each particular report required for a particular buyer or occasion.
Business-Trader.com Ad-Profile: ValuPro10 is designed also to generate an ad profile for listing on Business-Trader.com, an ad just slightly more detailed than that created by ValuPro1. At the conclusion of the valuation calculation process, the user would simply complete the Business Description portion and then click the SUBMIT AD button.
To enlarge the ad image, click on the image.
The Ad-Profile will appear on-line much as it does in the ad image here illustrated.
