ValuAdder Business Valuation Blog

By popular demand from our customers, we have added this gem of a valuation method to an already extensive selection of tools available in ValuAdder software.

Normalize your financial statements to get ready for valuation

ValuAdder financial worksheets always gave you the ability to run the Capitalized Earnings valuations. First, you go through the financial statement normalizing adjustments. Next, you would work up the earnings estimate and long-term earnings growth rate. Finally, risk assessment would give you the capitalization rate needed for the valuation.

Lots of method choices to help you

But there is nothing like the efficiency and convenience of a dedicated tool to delight our customers. Importantly, this addition nicely complements the other income-based valuation method choices the ValuAdder software gives you:

Not to mention the market-based and asset-based valuations you can run. Importantly,  you have these tools already in ValuAdder software:

Just like with all the other valuation methods, you can conduct highly customized financial statement adjustments and create earnings forecasts. And assess the company’s risk to work up the discount and capitalization rates.

ValuAdder lets you export all this work into the familiar and flexible Excel spreadsheet format. Add line items, change the math, add graphs and charts, as you need.

Then import all the data required for the business valuation calculations back into ValuAdder with a mouse click! ValuAdder is smart enough to offer you tips on data import, calling your attention to questionable inputs that may require your review.

ValuAdder helps you avoid mistakes

For example, the overstated earnings growth rates, capitalization rates that approach zero, or earnings forecasts that appear out of line with historic trends. You choose to accept the numbers or question your assumptions to refine the valuations – all in real time.

The software works to immediately calculate your business valuation results. Each valuation method you use has a summary report you can create with a mouse click.

Ready for a formal business appraisal report? The companion Report Builder tool we also offer stands ready to help you create a standards-compliant work product you can share with your business clients, professionals, lenders, or tax authorities.

See Valuation Tour