Business Valuation: How Much Is Your Business Worth? (free Business e-Coach)

Business Valuation

How Much Is Your Business Worth?

By Venture Planning Associates, used by permission

The Business Valuation Model combines relative indicators for future performance with basic financial data (Revenue, Variable, and Fixed Costs) to value the business.

This valuation method can be used for business purchase, sale, or establishment. The model uniquely applies your intuitive business and market knowledge to provide a 3 year performance forecast and a business valuation.

The model is compact and easy to use with minimal input requirements. ► $39 ► Click here!

Reasons to Value a Business

When Buying or Selling
When Raising Venture Capital
Payment of Estate taxes
Divorce Settlements
Buy/Sell Agreements
Stock Re-capitalization
Payment of Gift Taxes
Shareholder Disputes

Information Required

(maximum number of years possible)

Balance Sheets
Income Statements
Cash Flow Statements
Earnings Projections
Business Comparables if available

Seven Valuation Types

Adjusted Net Assets
Capitalization of Earnings
Dividend Paying Capacity
Excess Earnings: Return on Assets
Excess Earnings: Return on Sales
Discounted Cash Flow
Discounted Future Earnings
Combination Method Weighted Average of All Types

Conventional Valuation with Variations and Averaging

Generally, Venture Planning Associates offer programs that give the total business value, however it may be possible to value a portion of the stock, to add a discount or premium to stock as well.

For an example of a conventional venture capital valuation with variations see the chart below.

First Chicago Method

The First Chicago Method is used to value venture type businesses by Venture Capital firms.

High risk ventures are usually valued using the First Chicago Method that evaluates probabilities of success (IPO), the sideways scenario, and the failure scenario (liquidation).

This method uses a high-risk adjusted, discount rate and embodies many assumptions.

We specialize in the First Chicago Method as a means of determining the pre and post investment values for entrepreneurial (pre-IPO) business investments.

Valuation Services

Venture Planning Associates provides valuations for any of the above listed IRS scenarios. Venture Planning Associates also provides valuations of sole proprietorships, partnerships, or corporations with one class of stock, and provides comparisons with industry standards

Investment Valuation Template

Ideal for evaluating a wide range of investment and business case scenarios. While it is based on the traditional discounted cash flow method of valuation, its also provides ability to evaluate economic value added valuation, accounting impact, and a range of other evaluation parameters. ► Free trial! >>>

Discover much more!

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Funding PRO

Funding PRO is for executives, business owners, accountants and venture capital firms who want to develop detailed financial plans for any ten year period using Excel to develop best case, forecast case and worst case scenarios.

Funding Plan PRO can also be used as a quick financial modeller for any business. ► US$99 ► Buy now

QuickValue PRO 3.0

US$ 99 ► Click here

Calculates the present value of any investment project or company share based on forecast cash flows and income proformas or actual data.
Quick valuation of any project or business, or option using cash flow forecasting, black-scholes formula or earnings forecasts.
Provides five, ten, fifteen and twenty year value basis, share value and net worth.

Templates for Net Present Value and IRR

Investment-Calc provides all the "financial models" you need to calculate the NPV/ROIC and IRR of business investments, and provides calculators to work out the present value of future receivables or payables, and the PV of future cash flows. → $125 → Click here!