BizEquity Knowledgebase Support Center

Can I run a valuation if my industry has zero A/P or A/R or something similar?

One of the many positive features of our system is that we simultaneously generate estimates of value which reflect both the more common "asset sale scenario" (asset sale value) and the less common but still frequent "stock sale scenario" (equity value) in our report. What this means is that the equity value will account for ALL balance sheet items as entered and the asset sale value will reflect the value of inventory, fixed assets and "goodwill" (all intangible asset value or the value above and beyond the identifiable tangible assets inventory and fixed assets).

In short, most dental practices are sold as "asset sales" which means that they by definition would NOT include A/R or A/P (even if it exists).  If they do exist and they are entered, they will only be reflected in the equity value estimate - while the asset sale estimate is always reflective of the three primary assets of inventory, fixed assets and goodwill. Therefore, not entering the data for A/R or A/P (or entering a value of zero) will NOT impact the most commonly utilized asset sale estimate of value.