A deal on the table. There’s something burning inside you. If there wasn’t, you wouldn’t be reading this. We get it. We are entrepreneurs ourselves.
The founders of bizval have a diverse past and an intertwined future. We’ve pooled our efforts to bring you a valuation tool that gives a reasonable approximation of the value of your business without breaking the bank in the process.
Creating something complicated is difficult. Creating something simple is even harder. We believe that we have struck the right balance with bizval. We hope you’ll feel the same when you use the valuation tool.
But the question you’re probably asking yourself is: why is it important to get a business valuation in the first place?
The obvious scenario: there’s a deal on the table
Building a business is one of the toughest routes that anyone can take. After years of blood, sweat and (you know the rest), the opportunity may arise to bring a new investor on board or to sell your entire business.
This is a huge and emotional decision for any entrepreneur. It feels daunting and exciting all at once. If you get it right, this could be the big break or financial exit that you always dreamed of. If you get it wrong, you could end up short-changing all the effort put in to get to this point.
Your situation may be the other way around, of course. You may be considering an investment in someone else’s business. There’s so much to consider in a decision like this, not least of all the risk of overpaying for a business.
An investment return is a function of what you buy and how much you pay for it. Even the best businesses are horrible investments at an inflated price. An otherwise poor-quality business can deliver life-changing wealth if you can pick it up for a steal.
Whichever side of the deal coin you currently find yourself on, the lawyers will be keeping you busy with complicated documents like shareholders’ agreements and a new memorandum of incorporation (depending on which country you are in). With so much to read and think about, having a simplified view of the valuation can be a lifesaver in these deals.
But if you’ve never attempted to value a business or even read a professional valuation before, then where would you even start?
A quick check on Google would reveal a bewildering cocktail of valuation methodologies. There are investment bankers with thousands of hours of experience who advise on these matters for the largest companies in the world.
If it takes them such a long time to perfect the art of valuations, then a “how to” Google search just isn’t going to cut it.
That’s where we come in. Our platform plays the role of the bankers in giving you an indicative valuation to consider for your deal. We’ve distilled years of academic training and advisory experience into a standard model. It gives a simplified answer that will work in all but the most complicated or specialised scenarios. Our proprietary model utilises several valuation methodologies and weights the final answer based on the life cycle and nature of your business.