Business Valuation Reasonableness Check

You can use Deal Check to test the reasonableness of your business valuation results:

• Create a plausible business sale scenario. Enter your business value as the potential business purchase price.
• Specify the terms of the transaction.
• Enter the returns expected by the business owners / investors.
• Account for the working capital and capital expenditures required to run the business.
• Calculate and review the business cash flow required to make the transaction work.

If the business does not generate sufficient cash flow to support the deal terms, you may need to review your assumptions and revise your business valuation.