We get it – the idea of doing a valuation can be daunting, but we are dedicated to making the process affordable and more accessible to entrepreneurs!
If you don’t find your question below, send us an message and we will get back to you within 12 hours.
Uses of valuations
A business valuation is needed when selling a business, investing in a stake in a business or buying a business outright. Valuations can also be used as a tool to measure progress in the journey of entrepreneurship.
Accountants can use valuation reports to significantly enhance the quality of discussions with clients when presenting management accounts or financial statements.
No – the valuation principles are the same and are based on the financial information of the business itself, not the buyer or the seller.
Entrepreneurs are driven by a sense of purpose and a desire to solve a problem. In doing so, they create value for themselves and for stakeholders. By using a valuation tool on a regular basis, you can measure your progress in creating value.
If you are an accountant, this can become a driver of great discussions with your clients beyond their balance sheets and income statements.
If you need the valuation for a regulatory purpose, then we recommend engaging a professional services firm who can ensure that your financial information is inputted correctly and that any complexities in your business are specifically considered.
Our algorithm is designed to give an affordable and accessible estimate of value and has not been designed for use in regulatory applications. We do not accept any liability related to reliance on our valuation.
Our proprietary algorithm balances the desire to give a reasonable approximation of the value of a company against the need to keep the process simple and accessible for entrepreneurs who don’t have a formal financial background.
We have designed a model that uses three valuation techniques (discounted cash flow, earnings multiple and net asset value) to arrive at a blended answer. We suggest a tight range based on the blend.
The final report explains the best use-case for each methodology and ways to increase your valuation.
The bizval founders are experienced entrepreneurs and professionals who have built, bought and sold businesses. The algorithm itself was built by an experienced investment banker with a decade of experience in financial analysis, investments and mergers and acquisitions.
It may happen that the output of our algorithm differs from an offer you have made or received. This happens in practice too, even when paying professional services firms hundreds of thousands of dollars for valuations, as transactions aren’t always concluded at the theoretical valuation.
This is no different to buying or selling a house, for example.
By providing a final report with the result of each methodology and examples of situations in which underlying methodologies might be more appropriate, you can assess the result against the specifics of your business.
If you need some guidance after receiving the report, you can email us and our support team will help with your questions within 12 hours.
We will need to know the basics about which country and sector you primarily operate in, along with how many employees you have and the age of your business.
You will need your recent financial statements or your accounting system so that you can accurately provide information about annual turnover and expenses. We will need to know whether you own or lease your physical property and what the approximate market value of it would be. We also need to understand how long it takes your customers to pay you and how long you can take to pay suppliers.
You do not need to be an accountant to answer the questions, but if you get stuck then you can save your progress and consult your accountant or a friend to help you finish the inputs accurately.
This is the most important part of the process. Our algorithm is only as good as the inputs!
Assuming your information is readily available and you are familiar with the numbers, the entire process should take around 15 minutes.
Support when things go wrong
In the very unlikely scenario that we experience technical difficulties, please email us and we will attend to the query within 12 hours. We will ensure that you receive the report that you have paid for. If you would prefer at that stage to receive a refund, we will process this timeously.
Our pricing is for an automated process with our algorithm. If you have specific questions, contact us and we will assist as far as practically possible. If you need detailed assistance or want to understand more about the valuation process or how to enhance the value of your business, we do offer consulting services at a reasonable rate for small businesses.
Yes, our HQ is run from South Africa, 29 Savell Ave, Glen Ashley, Durban North, KwaZulu-Natal, 4051.
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