Quick Reference Guide
Hi! Welcome to today’$ VAL™!
VAL offers the only business valuation tools that provide the business owner and/or the financial team an estimated business valuation with an easy to understand format that require a few simple financial questions taken right from last year’s Business Income Statements otherwise known as Profit & Loss Statements. The BEST part of using today’$ VAL™ - YOU DO NOT HAVE TO BE A CPA TO UNDERSTAND IT!
We have created two valuation software tools for business owner's and their financial team:
- VAL 4.2 S.D.E. is a Business Valuation App based on an industry specific multiplier of Seller Discretionary Earnings or S.D.E. (as seen in Demo Video)
- VAL Rule of Thumb is a Business Valuation App based on an industry specific percentage of annual sales
today’$ VAL™ software creates a benchmark or ballpark valuation estimate for business owners and professionals who advise business owner clients. The tools are easily calculated from information taken directly from the business financial statements. Consequently, the tools are considered Indications of Value (estimations) of what a business is worth and not a Conclusion of Value which is performed by a Business Certified Appraiser.
Wealth Managers, Financial Advisors, C.P.A.’s, Business Brokers and Consultants, Attorneys of Law in Estate Planning, Business and Civil litigation and many others find VAL to be a useful tool in helping their clients make more qualified decisions on purchasing or selling a business, all at an extremely low cost!
Many professionals choose to charge their clients a report fee that range from $500 to $1,000 per report! Other professionals choose to use VAL software as a value-added service as a competitive advantage to gain new clients!
DEMO VIDEO & SCRIPT BELOW
The script below follows the demo for users to print and follow along.
Please click GET STARTED, then answer a few simple business questions. We will use this information to calculate your estimated business value.
Hi, my name is VAL. What is your name?
Nice to meet you Tom!
Please answer the next 11 questions, and I will give you an estimated value of what your business could sell for in today's market.
What are your gross sales for last year? Enter amount directly from the business income statement.
In this example, the business generated $750,000 in gross sales.
Enter compensation of just ONE working owner, partner, or manager that was expensed. I will add-back an average 10% payroll tax to the salary inputted. Ask the business owner to confirm the salary amount.
In this example, the working owner’s salary was $95,000.
Would you like to view your adjusted compensation with a 10% payroll tax? Always click yes to add-back payroll tax.
Enter the total interest expense from last year. Enter the amount directly from business income statement.
In this example, the interest expense was $2200.
Enter the depreciation expense from last year. Enter the amount directly from business income statement.
In this example, the depreciation expense was $16,000.
Enter the amortization expense from last year. Enter the amount directly from business income statement
In this example, the amortization expense was $0.
Enter the sum of all non-recurring expenses from last year. Most business owners know their personal versus business related expenses.
Examples include but not limited to non-working family wages or expenses, unusual legal or accounting fees that are non-business related, any one-time equipment purchase or replacement, or any other expenses that a buyer will NOT have to pay.
In this example, a business owner paid $20,000 to repave the parking lot and paid $5,000 in personal legal fees; therefore, the non-recurring expenses would equal $25,000.
Enter any expense from last year that the buyer may have but the owner or selling party did NOT expense last year.
Example may be the market value of rent if the selling party owns the property that does not convey in the business purchase but will be leased to a new buyer. The amount entered will be added or subtracted in the value. If you are unsure of the number, enter zero.
In this demo, a business owner does NOT pay herself rent for the 2000 square foot building she owns. The market value of rent is $25 a foot so you would input $50,000. If the business owner paid over market price to herself in rent, you would input a negative number.
Owner Benefit – Enter the total owner’s benefit or personal expenses paid from the business for a personal vehicle, non-business travel or entertainment, health and/or retirement benefits, etc., that are solely for the owner's benefit and NOT an expense needed to operate the business.
In this example, the business owner pays $5000 a year for a family boat club membership, $2500 a year for personal automobile and $10000 a year in family travel so you would input $17,500.
Enter the profit or loss from last year. It is ok to enter negative amounts. Enter the amount directly from business income statement or the business tax return if available.
In this example, the business had a profit of $75,000.
Now, search to find your Business Industry Multiplier, then click button below. You may begin the search by typing the business industry or scroll to the industry in drop down menu.
In this example, let’s type in Trucking Company and click the appropriate box.
What does the business spend annually on new equipment? Most business owners can provide a good estimate of the amount spent yearly on equipment.
If unsure, then input the current value of your equipment divided by 10.
In this example, the business spent $7,500 on new equipment last year.
What email should we send the PDF report with a detailed breakdown of your results? Here, you input your professional email to preview report prior to invoicing or sending to the client.
In this example, we use a current email.
Please Click "GET MY REPORT"
VAL estimates this business to sell for $570,600 in today's market. VAL will be sending you a detailed PDF report to your email in the next few minutes. Please be sure to check your spam folder.
As a today’$ VAL™ user, all PDF reports generated by you for your client’s will be branded with your professional contact information.
Schedule a FREE consultation by clicking the link below. This provides you the opportunity to immediately schedule a current or prospective client to your online booking calendar prior to leaving a zoom call or ending the meeting.
Please review our FAQS page for additional information on how today’$ VAL™ will enhance the growth of your business! For additional questions, contact us here https://www.todaysval.com/contact-us
And of course, if you have another business to estimate, please click “Start again.”
Thank you for visiting today’$ VAL™!