Valuation

Asset Sale Value
BizEquity Valuation Method and Data Sources
How do you treat Section 179 deductions for depreciation which are found on the shareholder's K-1 statement and how do they affect discretionary earnings?
How does the level of intangible assets and goodwill vary by industry?
In Step 3 – Income and Expenses – Officer Compensation: Should this include all Officers or just Owners?
What percent of the pre-valued companies are worth $50 million or more?
Can we use BizEquity for larger companies worth more than $100 million?
Can you explain the nature and key aspects of the BizEquity valuation tool and algorithm?
We are struggling with the presence of goodwill, i.e. we know that profitable practices all have goodwill - but it is not shown or claimed on the tax return balance sheet
Which valuation approaches and methods are used by the BizEquity online valuation tool?
Business Owner expressed concerns for the number of years available, stating that trends are necessary for BV and that four would be standard.
Where do we record depreciation on fixed assets?
What do you personally consider the "minimal inputs" to have confidence in the output?
What impact (other than the trending graphs) does adding prior years data into the 7 steps have? Are they incorporated into the valuation output?
How do intangible assets impact the estimate of business value in general?
I’m confused about Enterprise Value vs Equity Value. In most cases I would assume Enterprise Value to be greater than Equity Value because of this definition:
Which Business Value Conclusion is Most Important?
What is the difference between the asset and equity transaction structure are:
How would you explain the difference between your on-line valuations vs. the typical formulas we always hear about like: 5 times EBITA, or 3 times annual revenue?
I don't see a field to input regular expenses -- only one-time expenses. Should we input total expenses there?
Two different revenue streams
Are there situations in which the IRS requires a valuation be certified? If so, can BizEquity identify when this would be the case so as to preemptively act on this requirement?
Is it possible to value a division within a company?
How can you tell how much equity the owners have in the business to calculate the Return on Equity KPI? How can you calculate the Receivables (Conversion) over Time? The result is in days-what data drives that KPI?
As I add amounts in the One Time expense box, it increases company value (as it should) until I get to $30,000. at that time it reduces the value if the amount enter were zero by $100,000. It seems to continue like that for amounts over $30,000. At an enter of $25,000 it is increases company value above the norm. At $30,000 the norm drops by $100,000. Why is this happening? It makes no sense to me
I have a client who is trying to figure out a value for a division of government contracting business. The tricky thing is that the business has expiring contracts which will be declining in revenue in the future. I’m not sure how to handle this in BizEquity.
Does the type of company or franchise status play a role in determining value?
Is there a place where the amount for “owner’s equity” or “shareholder's equity" should be entered?
There is a balance sheet which lists life insurance as other current assets.
. Can the software include value that may not be on the financials yet (like a major deal penned but not fulfilled).
Does BizEquity use price to earnings or price to revenue multiples?
What are the common discounts applied to minority (non-controlling) interests for estate and gift tax purposes?
How do I value proprietary technology that a business has developed and invested millions into? The inputs does not include this type of data other than simply asking whether or not the company has intellectual capital.
On the Schedule L, line 14, where should that go in BizEquity?
The client's concern is that we did not ask for "prepaids" or "deferred revenue" - common items for this service oriented company.
Owners compensation with 2 owners
How can CPA’s utilize the BizEquity system and report?
The list of assets with column for fair market value is what the equipment could be realistically sold for today, which both seller and buyer agree on (at least for vehicles, office equipment = maybe, but the majority of the list is equipment).
Asset purchase price of X. His EBITDA number is very low and I can’t understand why his Asset sale value is coming out the way it is.
What is the process for entering data during an interim year when only several months of financial data is available?
What is owners compensation?
This valuation is for a veterinary clinic which is structured as a partnership. We wanted to make sure we were accurate when calculating ‘Officer Compensation’ in the 7 step process. Where would I find payroll information on the 1065 tax document? Is it there or would I need to ask the partners for a breakdown of the payroll?
I have a question about a company I’m doing an updated valuation for. We did the original one in 2016 and now with official 2016 and 2017 numbers and 2018 half-year numbers, the valuation went down by nearly 50%. The net income numbers were about the same for all the years 2013 through 2018 (or at least close) and they didn’t gain or lose a large amount of assets. They actually dropped some long term debt. Just wondering what is going on. I didn’t change SIC codes—just did it from the existing one in the database.
Does the value of the liquor license (about $200,000) go into Intangible Assets? I thought yes, but wanted to double check with you. Please let me know, especially if otherwise.
Do I need to enter “total expenses” or “cost of goods sold” anywhere in the tool?
Is there a checklist of what a clients needs to have ready before they start the process?
I performed a valuation for one of our agents and the business owner really wants to understand the calculation behind the value. I told the agent that it was a trade secret and that we were not privy to that information. The business owner was less than satisfied with that answer. Is there any additional detail we can provide that might satisfy him?
I know there are growth assumptions built into the algorithm based on industry etc. Let's say industry X is 5%, but we put 10% growth in step 6.... will that be the difference of 5% or is that 10% on top of the assumed 5%?
Can the Bizequity tool be used for 409a business valuations related to employee stock options?
Asset Sale vs. Liquidation Value
Do you offer certified offline valuations?
How do I remove a company from my console?
Negative Equity? Horrible ROE? Why?
What justifies a high industry multiple?
Why are private companies typically valued less than public companies?
Is the BizEquity Valuation model applicable to (large) listed companies as well as Small Businesses?
Does the BizEquity Report Satisfy ERISA Compliance Regulations?
What Data Sources Are Used By The BizEquity Platform?
How Do I Explain the Accuracy of a BizEquity Business Valuation?
How Are Pre-Valuations Calculated In The Prospecting Tool?
Why Does The Equity Value Come Out Greater Than The Enterprise Value?
How Does The BizEquity Process Differ From The Typical Valuation Process
Equity Value vs. Enterprise Value
The BizEquity Business Valuation Process and Algorithm
Which Valuation Figure is Most Important?
Liquidation Value
Enterprise Value
Equity Sale Value
What Methodology Does BizEquity Use?
Non-Cash Expenses
How should loans be entered into the 7-step process?