Are you looking for process mapping sofWhat is Business Valuation? Are you curious about how much a company is worth? If the owner is planning on potentially exiting or selling his or her business, learning the company’s worth is critical. This is when Business Valuation Software comes in handy. Business valuation is the process of determining the economic value of a business or company. Financial market participants including business buyers and sellers, corporations, banks, portfolio managers, and venture capitalists use valuation to determine the price they or their client is willing to pay or receive during the sale of a business. Knowing the most basic concepts of business valuation goes a long way in determining the approximate worth of your interest in a business or if you are selling your business, it gives you an idea of a realistic selling price.tware free? Or maybe looking for best software for business valuation? You’ve come to the right place.
There are various ways that a business can be valued. You could look at it based on balance sheet, cash flow or book value, or you could also use a more subjective approach to value the firm. No matter what you’re looking for, there’s plenty of advice to help you get started with learning process mapping tools and software free.
What is Business Valuation?
Are you curious about how much a company is worth? If the owner is planning on potentially exiting or selling his or her business, learning the company’s worth is critical. This is when Business Valuation Software comes in handy.
Business valuation is the process of determining the economic value of a business or company. Financial market participants including business buyers and sellers, corporations, banks, portfolio managers, and venture capitalists use valuation to determine the price they or their client is willing to pay or receive during the sale of a business.
Knowing the most basic concepts of business valuation goes a long way in determining the approximate worth of your interest in a business or if you are selling your business, it gives you an idea of a realistic selling price.
EquityNet
EquityNet is one of the globe’s leading pioneers in crowdfunding. Established in 2005, the platform works to connect thousands of entrepreneurs with investors of all shapes and size — and has already helped start-ups across the globe raise hundreds of millions in equity, debt and royalty-based capital.
As part of that mission, EquityNet provides a valuation calculator backed by real market data gathered from over 3,000 business across North America. That enables you to weigh the value of a business against potential competitors — which is a factor some analysts often overlook.
EquitNet also provides free calculators to work out a company’s profit margin, cash flow and startup risk.
ValuAdder
- Capitalized Earnings. Calculate business value based on the earnings estimate and capitalization rate.
- Capitalized Excess Earnings. Use the classical Treasury Method to calculate the value of business goodwill and total business value.
- Discounted Cash Flow. Determine the value of any business based on its earning power and risk.
- Market Comps. Price the business quickly and accurately using comparable business sales by industry. Calculate the business price range, average, and median values.
- Multiple of Discretionary Earnings. Create a comprehensive business appraisal based on business earnings and a set of key financial and operational value drivers.
- Net Present Value. See if a business investment makes sound financial sense.
Eqvista
Eqvista is one of the leading cap table management software and business valuation providers. They perform high-quality business valuations for clients at a price they can afford. While evaluating a company, you can use different kinds of small business valuation methods. Using Eqvista’s business valuation calculator, you can get an idea about the worth of your business.
ExitAdviser
Another reputed online support service that empowers business owners to connect with potential buyers is ExitAdviser. ExitAdviser is home to a rapid business valuation calculator intended to give potential buyers quick quotes in line with that service. To get an evaluation, buyers need to enter net profit from the most recent financial year of the company and forecast its sales growth. There are plenty of more advanced input options to help generate more accurate valuations.
To get an estimate, buyers simply need to enter net profit from a company’s most recent financial year and forecast its sales growth. That said, there are plenty of more advanced input options to help generate more accurate valuations.
BizEx
Like most free valuation calculators, BizEx hosts a platform based upon the ‘Multiple of Earnings’ method. But their calculator is far more advanced than most of the free models you’ll find kicking about on other sites.
By including an in-depth breakdown of a company’s discretionary and multiple earnings, you’re able to create instant valuation ranges depending upon a range of variables. Afterwards, you’re given the option to talk these numbers over with a broker if you’re so inclined.
MoneySoft
MoneySoft provides a software solution to perform automatic business valuation. The software performs a business valuation using the three common methods: book value method, the DCF method, and the valuation multiples method. Based on the results a very comprehensive valuation report is built. The report includes all the necessary information for interpreting the results as well as general information about the used methods and business valuation. A sample valuation report can also be found. MoneySoft costs $795/year.
MoneySoft offers analytical tools for businesses, one of them being the Business Valuation Specialist software.
It allows the user to choose the methods and approaches they want to include and choose appropriate weights for each method according to their needs. There are several methods that can be chosen from asset, income and market approaches.
According to the MoneySoft website, the asset approaches include net asset value and liquidation value and income approach includes capitalization of earnings, capitalization of excess earnings and multiple of discretionary earnings as well as DCF. Market approaches include price multiples from sales of comparable businesses in several different databases.
In addition to the figures mentioned above, the report includes detailed income statements, balance sheet and statements of cash flows, including projected cash flows. Also some ratios, common-size financial statements and industry comparisons are calculated. You can also find the MoneySoft sample report.
The company does not offer any kind of free demo, so it is difficult for the customer to estimate the usefulness of the software prior to making the purchase. There is one video tutorial, which unfortunately gives limited information on the system.
However, the company does provide consultation and training for using the software. They offer free customer support via different platforms for those with the latest version of the software.
Pluses
- Doesn’t rely on only ACF but accounts for multiples as well.
Minuses
- Poor interface and usability, the general feel is outdated.
Pricing information
- BizPricer Valuation Software Kit can be purchased at 279.95usd
- 30 days free return policy
American River Bank
The discounted cash flow method is used by the American River Bank business valuation calculator to determine the value of the business. According to the bank, this method is more appropriate as the future operating conditions and cash flows are variable or not projected in this method. So, in case you are searching for a business valuation method with such situations, go for the American River Bank valuation calculator.
National Life
National Life is an all-encompassing collection of financial services companies. Its online valuation calculator draws upon that power to produce relatively well-informed market estimates. National Life’s calculator finds the company’s worth by studying the present value of its expected future earnings. It puts particular consideration on a lack of marketability and excess compensation of the company.
There are many brilliant valuation calculators online that you can use to generate a snapshot of how much a business may be worth. One thing you should keep in mind is these free business valuation calculators aren’t always accurate. It’s up to you to do your homework to make sure that you have put in or accepted the best possible offer for an existing company.
Hadley Capital
Hadley Capital’s business valuation calculator is somewhat different in that it utilizes a multiple of EBITDA to prepare the Enterprise Value of your business. A small business will typically trade for around three or four times its normalized EBITDA. That being said, the multiple will slide dramatically based upon a variety of characteristics specific to your business. This calculator sensibly emphasizes your annual EBITDA, annual capital expenditures, and how much of your revenue comes from top customers.
Digital Exits
In case you have a lot of data and want to find the most accurate value of your business, Digital exits are the one. Digital Exits has examined more than 80 different industries to give business owners a more precise estimate for what they can expect to earn, based on their specific business. The data the company presents will provide you with a better conclusion of where your business sits to assess the market better.
CalcXML
A wide range of financial tools has been provided to small businesses for some time now. The valuation calculator provided by the company is a tried and tested model. Therefore, you can actually trust it and in case you are skeptical about it, reviews are always there to help. It is a simple tool designed to give potential buyers a quick snapshot. It takes all of the basics into consideration, including annual earnings, excess compensation, and level of business risk. It only takes a few minutes.
MassMutual Financial Group
MassMutual is an all-encompassing insurance provider that represents over 13 million clients across the globe. Consequently, the company values user experience far more than some of the industry’s smaller websites. Its business value calculator is no exception.
This user-friendly calculator very clearly and concisely walks you through every step of the valuation process in order to work out a decent estimate in as little as two minutes.
HelpSME
HelpSME is a great resource for small businesses in need of tutorials and advice. That’s why the site offers an easy-to-use valuation calculator using the Net Present Value (NPV) method. This approach uses a company’s future cash flows to try and work out how much it’s worth in the here and now.
HelpSME’s calculator also includes useful guides designed to help you wrap your head around the value provided.
Conclusion:
Business valuation software is expensive, right? Or so I’ve heard. They typically range in price and can be well over $1,000 a year. But what if you could have access to all the functionality of a professional business valuation software for free? Sounds too good to be true, but isn’t that what we SEOs say all the time?