When talking with business owners and/or their advisors it is common for us to hear that the process of working together came to a halt when it was time to enter a value for their business. Business owners almost always have a good idea of the value of their home, investments, boat, car or other personal assets. But when asked about the value of their business – which is typically their most valuable asset – owners often default to what they need it to be worth, or use a quick multiple of a number off the company’s financial statement (a shortcut further popularized by shows like Shark Tank). While well intentioned, neither of these options lead to a reliable number to use in your work with them.
Business valuation is our team’s sole focus, and in addition to our work on detailed business valuations and litigation support, we have also created a web-based, on-demand valuation software based on advisor input and feedback called Business Trend Analysis + Valuation (BTA+V). The BTA+V software includes a suite of tools that can make for more meaningful conversations with your business-owning clients. In addition to providing you with a reliable value conclusion for the subject business, it can also help you attract more business owners as clients.
BTA+V allows you to identify a reliable, conservative value conclusion for your clients’ businesses that considers each company’s quantitative and qualitative factors (both are very important, which is why multiples don’t lead to a reliable value). You can access the software at your desk and it can be started and stopped based on your schedule. Ultimately, this software will help you develop more reliable financial plans and guidance for your business owner clients.
And beyond the conclusion of value, the BTA+V offers other tools that help you attract business owners or add value to the business owner clients you already work with. When presenting this information to business owners–even those who have long been in their business–we have heard firsthand that they are impressed with what they see and what they have learned about their own business–from a report generated by you, their advisor!
Here are additional resources you have access to with BTA+Valuation:
All of these resources are available within the BTA+Valuation online software. You can view a sample report here. We are available to have a conversation to answer any questions you may have. We are happy to explain how it works in more detail and how you might use the BTA+V software to grow your practice and better serve clients.
As always, our team is here to answer questions you may have around business valuation for privately held businesses. We are happy to have a complimentary initial conversation to discuss what the valuation process entails and how to get started. CapVal offers traditional comprehensive business valuation options as well as our Business Trend Analysis + Valuation (BTA+V) web-based software that allows you to obtain a reliable value conclusion for business planning purposes at your desk, on your schedule.
If you would like to discuss a specific business situation please reach out to us through the Contact page or call us at 608-257-2757 and we’ll connect you to a business valuation expert on our team.