We offer a premier business evaluation service.
Our Business Valuation Model combines relative indicators for future performance with basic financial data (Revenue, Variable, and Fixed Costs) to value a business.
This valuation method can be used for business purchase, sale, or establishment. The model uniquely combines quantiative and qualitative techniques to provide a 3 year performance forecast and a business valuation.
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
- When Looking For Financing (e.g. for
New and Used Cars Lease, Car Finance, Bank Loans ...)
(maximum number of years possible)
Seven Valuation Types
- Balance Sheets
- Income Statements
- Cash Flow Statements
- Earnings Projections
- Business Comparables if available
- 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
First Chicago Method
We also use the First Chicago Method as a means of determining the pre and post investment values for entrepreneurial (pre-IPO) business investments. 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.
FVVB provides valuations for any of the above listed scenarios. We also provide valuations of sole proprietorships, partnerships, or corporations with one class of stock, and provide comparisons with industry standards.
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